In a surprising turn of events, Walmart has announced that it plans to shut down all 51 of its Walmart Health locations. This decision marks a reversal of the company’s previous decision to provide primary care services, citing a lack of sustainability in their business model for continuing these services. The retailer had only recently revealed plans to open 22 new Walmart Health locations this year.
The closure of these clinics is a significant blow to the retail health care industry, as Walmart had been a major player in providing accessible and affordable healthcare services. However, the challenging reimbursement environment and escalating operating costs have made it unprofitable for the company to continue offering primary care services. Despite the closures, Walmart will still offer health and wellness services through its pharmacies and Vision Centers across the country.
Walmart Health associates will have the opportunity to transfer to other Walmart or Sam’s Club locations and will be paid for 90 days unless they transfer or leave the company before that time. After 90 days, eligible associates who do not transfer or leave will receive severance benefits. The clinic’s provider partners will continue to serve existing patients until the clinics close, and they will be compensated through transition payments during this time.
The closures are expected to take place within the next 45 to 90 days, and Walmart will assist patients in finding high-quality providers in their insurance networks to ensure their continued care. This decision reflects the challenges faced by retailers in the health care industry as Walmart joins other companies like Walgreens in scaling back their primary care offerings.
