Walmart Stops Health Care Services: The Rise and Fall of a Giant’s Entry into the Industry

Walmart made a significant change in direction by announcing the closure of all its health care clinics and virtual medical services due to an inability to make the businesses profitable. The decision represents a shift from the company’s strategy of entering the health care industry on a large scale five years ago, launching medical centers next to its superstores that offered primary and urgent care services, as well as x-rays and dental work.

The closure of these clinics will impact employees located in Arkansas, Florida, Georgia, Illinois, Missouri, and Texas. Affected employees have the option to transfer to other Walmart or Sam’s Club locations, while those who choose not to transfer will receive 90 days of pay and severance benefits. Despite the closure of its health care clinics, Walmart plans to continue operating its nearly 4,600 pharmacies and more than 3,000 vision centers throughout the U.S.

Other major retailers like Amazon have also ventured into the health and wellness industry. Amazon operates a web pharmacy and telehealth service known as Amazon Clinic which offers treatment for less serious conditions like pink eye through third-party medical providers. However, unlike Walmart’s decision to close its clinics entirely, Amazon previously shut down a virtual and in-home care service it had been developing for years which highlighted the challenges that retailers face when entering this sector.