Retail Giants’ Healthcare Ventures Struggle to Profit: Walmart Shuts Down All Its Health Centers

In recent years, retail giants like Walmart, BestBuy, and Amazon have been trying to tap into the $3.6 trillion Americans spend on healthcare each year. However, the profitability of these ventures has proven more challenging than expected. Walmart announced that it has made the decision to close all 51 of its health centers that it had opened across five states since 2019, along with its virtual care program. The retail giant cited a lack of profitability as the reason for shuttering these healthcare services.

Walmart stated in an announcement that there is not a sustainable business model for them to continue operating these health centers. This decision marks a change of direction from their previous plans to expand their health clinics and enter new states by 2024. The closure of these health centers will not impact Walmart’s pharmacies or Vision Centers, which are approximately 4,600 and 3,000 respectively.

Retail giants have been trying to diversify their businesses beyond just selling products online or in-store. However, the reimbursement environment and operating costs have made the care business unsustainable for them at this time. Walmart mentioned that they will continue to serve existing patients until specific dates are provided for when each Walmart Health Center will close. The closure of these health centers is a significant setback for Walmart’s efforts to provide affordable healthcare services to Americans who may not have access to traditional healthcare providers.