Walmart has decided to shut down its health centers and virtual care service after struggling to make them profitable. The retail giant had launched its health centers five years ago with the goal of helping people save money on their healthcare needs. However, Walmart has now determined that there is not a sustainable business model for these services to continue.
The company had 51 health centers in five states and opened its first health center in 2019. Despite initially expanding its health center operations, Walmart found that the challenging reimbursement environment and escalating operating costs made the care business unsustainable at this time.
Walmart had previously announced plans to add more than two dozen health centers to some of its stores in 2023. The company had been looking to open 28 centers in 2024, mostly in Dallas and Houston, with plans to expand into the Phoenix and Kansas City, Missouri areas. However, these plans have now been scrapped as the company shifts focus towards other healthcare offerings.
Walmart has not yet provided specific dates for when its health centers will close, but employees who worked at these centers will have the opportunity to transfer to other Walmart or Sam’s Club locations. While the closure of the health centers signifies a shift in Walmart’s healthcare offerings, the company still operates almost 4,600 pharmacies and more than 3,000 vision centers in the U.S.
