The retail giant Walmart has decided to shut down its health centers and virtual care service after struggling to make them profitable. The company had launched its health centers five years ago with the goal of helping people save money on their healthcare needs. However, on Tuesday, Walmart announced that there is no sustainable business model for them to continue operating these services.
Walmart had 51 health centers in five states, with the first one opening in 2019. The company cited challenging reimbursement environment and escalating operating costs as factors that have made the care business unsustainable for them at this time. This decision comes as a surprise, as Walmart had previously announced plans to add more than two dozen health centers to some of its stores this year. The company had been looking to open 28 new centers in 2024, focusing on areas like Dallas, Houston, Phoenix, and Kansas City, Missouri.
Despite closing its health centers and virtual care service, Walmart will continue to operate almost 4,600 pharmacies and more than 3,000 vision centers in the U.S. Employees of the closed health centers are eligible to transfer to any other Walmart or Sam’s Club location.
