Walmart Shuts Down Its Health Centers and Virtual Care Program, Citing Unprofitability

Walmart has decided to close all 51 of its health centers that it had opened in five states since 2019. The retail giant has also shut down its virtual care program after acquiring telehealth provider MeMD in 2021. This decision was made because Walmart was not making enough money from these ventures and deemed them unsustainable. Retail giants like Walmart, BestBuy, and Amazon have all tried to tap into the vast $3.6 trillion Americans spend on healthcare each year but have faced challenges.

Despite the initial optimism that making healthcare more convenient and affordable through these retail outlets would be profitable, Walmart found that the reality was much more complicated. In a statement, Walmart acknowledged that the reimbursement environment and operating costs were escalating, leading to a lack of profitability in the healthcare business. This has ultimately made it unsustainable for the company at this time.

Last year, Walmart had announced plans to double the number of health clinics they operated and expand into two new states by 2024. However, the recent decision to close all health centers is a significant shift from those plans. Although specific dates for the closures were not provided, Walmart assured that existing patients would continue to receive care until the centers shut down. The closure of the health centers will not impact Walmart’s pharmacies or Vision Centers, which will continue to operate as usual.