In 2019, Walmart opened its first health clinic and has since expanded to several states including Arkansas, Florida, Georgia, Illinois, and Texas. However, the retailer recently announced that it will be shutting down the health clinics at 51 stores across these five states. Walmart cited a “challenging reimbursement environment and escalating operating costs” as the reasons for this decision. This move comes as a reversal of the company’s recent plans to double the number of clinics at its retail stores.
The decision to close the health clinics and virtual care operation was made after Walmart found the business to be “unsustainable.” Although no specific date was provided for the closures, sources indicate that they will happen within the next 45 to 90 days. The clinics were staffed by physicians and licensed care providers, offering services from primary care to behavioral health, as well as lab work and X-rays. Virtual care was also available through the company’s website.
Earlier this year, Walmart had planned to expand the number of clinics but decided to close them after receiving new information about reimbursements from insurers. In contrast, Amazon expanded its benefit for Prime members to include access to online services and visits at hundreds of One Medical clinics. On the other hand, Walgreens announced the closure of 160 Village MD clinics after experiencing a $5.8 billion loss in the business.
Despite the clinic closures, Walmart will continue to operate pharmacies at around 4,600 stores across the US, with over 4,000 of these locations in “medical provider shortage areas.” The company sees its pharmacies as an integral part of providing healthcare to customers and considers them to be
