Walmart has announced the closure of its health centers and virtual care service, as it has struggled to find success with these offerings. The retail giant had initially launched its health centers five years ago, with the goal of helping people save money on their healthcare needs. However, after considering the challenging reimbursement environment and escalating operating costs, Walmart has determined that there is not a sustainable business model for these services to continue.
The Bentonville, Arkansas-based company had 51 health centers in five states and opened its first health center in 2019. Despite initial expansion plans, Walmart found that the care business was unsustainable due to various factors.
This decision comes after Walmart had previously announced plans to add more than two dozen health centers to some of its stores in 2023. The company had been looking to open 28 centers in 2024, mostly in Dallas and Houston, with plans to expand into the Phoenix and Kansas City, Missouri areas.
Walmart has not yet provided specific dates for when its health centers will close, but employees who worked at these centers will have the opportunity to transfer to other Walmart or Sam’s Club locations. While the closure of the health centers signifies a shift in Walmart’s healthcare offerings, the company still operates almost 4,600 pharmacies and more than 3,000 vision centers in the U.S.