The retail giant Walmart has decided to close its health centers and virtual care service after struggling to find success with these offerings. The company had 51 health centers in five states, with the first one opening in 2019, with the goal of helping people save money on their health care needs. However, Walmart announced on Tuesday that there is not a sustainable business model for them to continue operating these services.
The challenging reimbursement environment and escalating operating costs were cited as factors that have made the care business unsustainable for them at this time. This decision comes as a surprise, as Walmart had previously announced plans to add more than two dozen health centers to some of its stores this year. The company had been looking to open 28 new centers in 2024, focusing on areas like Dallas, Houston, Phoenix, and Kansas City, Missouri.
Walmart does not have specific dates for when the health centers will close, but they have stated that employees are eligible to transfer to any other Walmart or Sam’s Club location. Despite closing its health centers and virtual care service, Walmart will continue to operate almost 4,600 pharmacies and more than 3,000 vision centers in the U.S.
