On Tuesday, Walmart announced it would be shutting down all of its healthcare clinics and virtual medical services due to the inability to make them profitable. This marks a significant change in direction for the company, which had expanded into the health care industry five years ago by offering various medical services in addition to its superstores.
The clinics being shuttered are located in five states: Arkansas, Florida, Georgia, Illinois, Missouri, and Texas. Specific closure dates have not yet been announced by the company. The decision was described as challenging by Walmart citing a difficult reimbursement environment and escalating operating costs as reasons for the closures.
Affected employees are given the option to transfer to other Walmart or Sam’s Club locations or receive 90-days pay and severance benefits. Despite the closures, Walmart reassured customers that it will continue operating its nearly 4,600 pharmacies and more than 3,000 vision centers across the U.S.
Walmart is not alone in facing challenges when entering the health care business; Amazon has also faced difficulties with its web pharmacy and telehealth service called Amazon Clinic. This move underscores the complexities that retailers encounter when trying to navigate this sector.
