Walmart has announced the closure of its health centers and virtual care service, citing ongoing struggles to find success with these offerings. The retail giant opened its first health center five years ago with the goal of helping people save on their healthcare needs. However, after managing the health centers and virtual service, Walmart has determined that there is not a sustainable business model to continue operating these services.
Despite this decision, Walmart still maintains nearly 4,600 pharmacies and over 3,000 vision centers in the U.S. The company had previously announced plans to expand its health center presence by adding over two dozen centers in some of its stores in 2024. However, Walmart cited challenging reimbursement environments and escalating operating costs as reasons for the lack of profitability in the care business.
The closure of the health centers comes after employees working at these facilities were informed of the decision to shut down operations. Although specific closure dates have not been set yet, employees will be eligible to transfer to other Walmart or Sam’s Club locations. The decision marks a significant shift in Walmart’s approach towards healthcare services and underscores the challenges faced by businesses operating in this space.