Walmart has announced the closure of all 51 of its health centers in five states in the U.S., as well as its telehealth operations. The decision was made due to the lack of profitability in these businesses. The big-box retailer cited challenges in reimbursement from insurers and other payers, as well as increasing operating costs, as reasons for the closures.
This move from Walmart comes at a time when the healthcare sector is facing tough competition from companies like Walgreens Boots Alliance, CVS Health Corp, and Amazon.com. Despite efforts to expand their healthcare services, especially during the pandemic, these companies have been experiencing losses.
In a blog post on Tuesday, Walmart stated that they had determined that there was no sustainable business model to continue operating the health centers. The centers were launched in 2019 and offered primary care, dental care, behavioral health, labs, X-ray, audiology, and telehealth services. Last year, Walmart had announced plans for further expansion to more than 75 locations, with 28 new health centers set to open in Texas, Arizona