Walmart has made the decision to close its health centers and virtual care service after struggling to find success with the offerings. The retail giant launched its health centers five years ago with the goal of helping people save money on their healthcare needs. However, Walmart has learned that there is not a sustainable business model for them to continue operating these services.
The Bentonville, Arkansas-based company had 51 health centers in five states and opened its first center in 2019. Walmart cited the challenging reimbursement environment and escalating operating costs as factors that have made the care business unsustainable for them at this time.
This decision comes after Walmart announced plans to add more than two dozen health centers to some of its stores in March 2023. The company was looking to open 28 centers in 2024, with a focus on locations in Dallas and Houston, as well as expanding into Phoenix and Kansas City, Missouri.
Walmart has not yet provided specific dates for when its health centers will close, but they have stated that employees who worked at these centers are eligible to transfer to any other Walmart or Sam’s Club location. Despite the closure of its health centers, Walmart still operates almost 4,600 pharmacies and over 3,000 vision centers in the United States.