Walmart to close its 51 health centers, virtual care service
- Walmart launched its health centers five years ago
- The company blamed an unsustainable business model for the closures
- It operated 51 health centers in five states
Walmart is set to close all its health centers and virtual care service as the retail giant has struggled to find success with the offerings.
The retail giant launched its health centers five years ago, but said Tuesday that there is ‘not a sustainable business model for us to continue’ running the health centers and virtual services.
Walmart had 51 health centers in five states, intended to help people save money on their health care needs.
In a statement announcing the closures, the company said: ‘This is a difficult decision, and like others, the challenging reimbursement environment and escalating operating costs create a lack of profitability that make the care business unsustainable for us at this time.’
Walmart announced Tuesday that it is closing its health centers and virtual care service, as the retail giant has struggled to find success with the offerings
The retail giant operated 51 health centers across the nation, and just last year CEO Doug McMillon (pictured) announced plans to expand their offerings in 2024
Walmart does not yet have specific dates for when its health centers will close, but said that it will share that information when it’s available.
Employees fearful that the announcement could cost them their jobs were also told that health center staff will be eligible to transfer to any other Walmart or Sam’s Club location.
In its statement on the closures, Walmart said it ‘understands this change affects lives.’
‘The patients who receive care, the associates and providers who deliver care and the communities who supported us along the way,’ the statement read.
The realization of the unsustainable business model comes after Walmart previously planned to increase the number of health centers across the nation just one year ago.
In March 2023, the company announced that it would add 28 centers in 2024, in locations including Dallas, Houston, Phoenix and Kansas City.
Walmart still runs almost 4,600 pharmacies and more than 3,000 vision centers across the U.S.
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