Five years ago, Walmart opened its first health center with the goal of providing affordable healthcare to its customers. However, despite its efforts, the retail giant has announced the closure of its health centers and virtual care service due to ongoing struggles to find success with these offerings. The decision comes after Walmart previously announced plans to expand its health center presence by adding over two dozen centers in some of its stores in 2024.
However, the company cited challenging reimbursement environments and escalating operating costs as reasons for the lack of profitability in the care business. Despite this setback, Walmart still maintains nearly 4,600 pharmacies and over 3,000 vision centers in the U.S., which will continue to provide customers with access to healthcare services.
The closure of the health centers is not yet finalized, and employees working at these facilities are eligible for transfer to other Walmart or Sam’s Club locations. This decision marks a significant change in Walmart’s approach towards providing healthcare services to its customers and highlights the challenges faced by retailers when it comes to making a sustainable business model out of healthcare offerings.