The closure of Walmart’s health care clinics and virtual medical services has been announced due to profitability issues. This marks a significant change for the retail giant, which had entered the health care industry in a big way five years ago. Initially, Walmart had opened medical centers next to its superstores and offered primary and urgent care services, x-rays, and dental work.
Walmart described the closure of its health care services as a difficult decision, attributing the closure to a challenging reimbursement environment and increasing operating costs. The clinics in five states – Arkansas, Florida, Georgia, Illinois, Missouri, and Texas – will be shut down, with specific closure dates yet to be determined. Impacted employees will have the option to transfer to other Walmart or Sam’s Club locations or receive 90-days pay and severance benefits if they do not choose to transfer.
Despite the closure of its health care services, Walmart emphasized that it will continue to operate its nearly 4,600 pharmacies and more than 3,000 vision centers across the U.S. The retailer’s decision to exit the health care business is not unique, as other major companies like Amazon have also struggled to expand into health and wellness services. Amazon previously operated a web pharmacy and telehealth service called Amazon Clinic but later closed a separate home care service highlighting the challenges in entering the health care industry for retailers and other businesses.