Walmart has decided to close all 51 of its Walmart Health centers across five states as well as the Walmart Health Virtual Care service. The company attributed this decision to a lack of sustainable business model for these operations, citing challenging reimbursement environment and escalating operating costs.
In a press release on Tuesday (April 30), Walmart stated that the care business is currently unsustainable due to these factors. The company has not provided a specific date for when each center will close, but its provider partners will continue to serve existing patients until then. Despite the closure of these health services, Walmart will still offer other health and wellness services through its Pharmacies and Vision Centers.
The decision to shut down these health services marks a reversal from Walmart’s previous announcement about expanding its health centers just three weeks ago. The company had plans to add 18 more Walmart Health centers in Texas this year, but ultimately decided to shut down the existing operations. This decision also coincides with UnitedHealth Group’s decision to shut down its Optum Virtual Care telehealth business.
Walmart first launched its Walmart Health center in 2019, aiming to provide low-cost, comprehensive care to patients. The closure of its telehealth offering is a disappointment for customers who relied on these services for convenient and accessible healthcare. However, the company expressed a commitment to innovation and growth in its core businesses, mentioning the launch of the Walmart Healthcare Research Institute and other health programs to help customers live better.
