Walmart’s decision to close its health centers and virtual care service is due to 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.
The decision to close the health centers comes after Walmart previously announced plans to expand its health center presence by adding over two dozen centers in some of its stores in 2024. However, the company cited challenging reimbursement environments and escalating operating costs as reasons for the lack of profitability in the care business.
Walmart currently operates 51 health centers in five states, but does not have specific closure dates yet. Employees working at the health centers will be eligible to transfer to other Walmart or Sam’s Club locations. Despite the closure of the health centers and virtual care service, Walmart still maintains nearly 4,600 pharmacies and over 3,000 vision centers in the U.S.
