Walmart is shutting down its health centers and virtual care service after struggling to make them profitable. The retail giant launched its health centers five years ago with the goal of helping people save money on their healthcare needs. However, the company has now realized that the challenging reimbursement environment and escalating operating costs have made the care business unsustainable for them at this time.
Walmart had 51 health centers in five states but has now decided to close all of them. The company had plans to expand with more centers in different areas, but these plans have been put on hold due to financial difficulties. In March 2023, Walmart announced plans to add more than two dozen health centers to some of its stores, with the majority planned for Dallas and Houston. However, these plans have been abandoned in favor of closing existing centers.
Walmart operates almost 4,600 pharmacies and over 3,000 vision centers in the U.S., which will remain open as usual. There is no specific date for the closure of the health centers yet, but Walmart will provide that information when available.
The closure of Walmart’s health centers and virtual care service marks a significant shift in the retail giant’s approach to healthcare. While it remains committed to providing affordable healthcare options for its customers, Walmart has realized that running a successful healthcare business requires more than just offering lower prices than traditional providers. It also requires finding sustainable ways to deliver quality care while managing costs effectively.