On Tuesday, Walmart announced that it will close all of its health care clinics and virtual medical services due to financial difficulties. This decision marks a major shift for Walmart, which had made significant investments in the healthcare industry five years ago. Initially, Walmart opened medical centers next to its superstores and provided primary and urgent care services, x-rays, and dental work.
The company cited a challenging reimbursement environment and rising operating costs as reasons for the closure of its healthcare services. The clinics in five states – Arkansas, Florida, Georgia, Illinois, Missouri, and Texas – will be shut down with specific dates yet to be determined. Affected employees will have the option to transfer to other Walmart or Sam’s Club locations or receive 90-days pay and severance benefits if they choose not to transfer.
Walmart emphasized that it would continue to operate its nearly 4,600 pharmacies and over 3,000 vision centers across the U.S., despite the closure of its healthcare services. The retailer’s decision to exit the healthcare business is not unique as other major companies like Amazon have also struggled with expanding into health and wellness services. Amazon previously operated a web pharmacy and telehealth service called Amazon Clinic but later closed a separate home care service, highlighting the challenges faced by retailers and other businesses when trying to enter the complex healthcare industry.