In a major shift, Walmart announced on Tuesday that it will be shutting down all of its health care clinics and virtual medical services. This decision marks a significant change in direction for the retail giant, which had expanded into the health care industry five years ago by offering various medical services in addition to its superstores.
Citing a challenging reimbursement environment and escalating operating costs as the main reasons for the closures, Walmart described the decision as a difficult one. The clinics being shuttered are located in five states: Arkansas, Florida, Georgia, Illinois, Missouri, and Texas. Specific closure dates have not yet been announced by the company.
Affected employees are given the option to transfer to other Walmart or Sam’s Club locations, and those who choose not to transfer will receive 90-days pay and severance benefits. Despite the closures, Walmart reassured customers that it will continue operating its nearly 4,600 pharmacies and more than 3,000 vision centers across the U.S.
This move underscores the difficulties that retailers encounter when trying to enter the health care business. Even Amazon has faced challenges in this sector, as evidenced by its decision to shut down a previously developed virtual and in-home care service in 2022. However, despite these challenges, retailers continue to explore ways to improve access to healthcare for consumers.