The End of Walmart’s Health Centers: What this Means for the Future of Big Business in Healthcare

Walmart has announced the closure of all 51 of its health centers in five U.S. states, as well as its telehealth operations, due to lack of profitability. The company cited challenges with reimbursement from insurers and escalating operating costs as reasons for the closures. This decision comes during a time of stiff competition in the healthcare sector, with companies like Walgreens Boots Alliance, CVS Health Corp, and Amazon also vying for market share.

These companies have been expanding their healthcare offerings, especially since the pandemic, in hopes of capitalizing on increased public focus on healthcare. However, many have been facing mounting losses, prompting Walmart to evaluate the sustainability of its health centers. Last year, Walmart announced plans to expand its health center presence to more than 75 locations by opening 28 new centers in Texas, Arizona, and Missouri. The company has not specified a timeline for the closure of each center, but it has stated that employees at these locations will have the opportunity to transfer to other Walmart or Sam’s Club locations. In a blog post, Walmart stated that there is not a sustainable business model to continue operating the health centers. Other companies in the healthcare sector, like Amazon and Walgreens, have also made strategic shifts recently due to financial challenges.