On Tuesday, Walmart announced that it is shutting down all of its health care clinics and virtual medical services due to an inability to make the businesses profitable. This decision marks a significant change in direction for Walmart, which entered the health care industry on a large scale five years ago by launching medical centers next to its superstores. These centers offered primary and urgent care services, as well as x-rays and dental work.
The company described the decision to close the clinics as a difficult one, attributing it to a challenging reimbursement environment and rising operating costs that were unsustainable. The impacted clinics are located in Arkansas, Florida, Georgia, Illinois, Missouri, and Texas, with specific closure dates yet to be determined. 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.
In contrast to Walmart’s decision to close its health care operations
