Walmart has announced the closure of all its health centers across the United States, which have provided low-cost medical care to patients for the past five years.
The retailer disclosed its plans on Tuesday to shut down its network of 51 health clinics spread across five states, along with its telehealth business. The decision to close these facilities indicates a departure from Walmart’s initial intentions to expand its healthcare services, citing rising operational costs and a “challenging reimbursement environment,” as stated in a news release by the company.
In a statement, Walmart expressed, “We determined there is not a sustainable business model for us to continue. We recognize that this change impacts various stakeholders, including the patients receiving care, the associates and providers delivering care, and the communities that have supported us throughout our journey.
Walmart health centers, which were first introduced in 2019 and located adjacent to Walmart Supercenters, offered a variety of services, including medical, dental, and behavioral health care. Although Walmart has not yet specified a closure date for each center, it intends to provide further details as decisions are finalized.
Following the closure of its health centers, Walmart plans to shift its focus within the healthcare sector to its extensive network of nearly 4,600 pharmacies and over 3,000 vision centers nationwide. These pharmacies have recently expanded their services to include testing and treatment, specialty medication access, medication therapy management, and various health screenings. Additionally, Walmart has introduced new features at its vision centers, such as virtual try-on capabilities using augmented reality.
The Walmart health center network spanned across five states, with the following distribution:
- Arkansas: 3 locations
- Florida: 23 locations
- Georgia: 17 locations
- Illinois: 1 location
- Texas: 7 locations
The closure of these health centers raises concerns about job losses. While Walmart has not specified the number of positions affected, eligible employees are being offered the opportunity to transfer to other areas of the business, including Sam’s Club locations. The company also mentioned that employees may qualify for severance benefits.
Acknowledging the contributions of its associates and providers, Walmart stated, “The associates and providers have made an incredible difference for their patients and communities, and they are a priority.”
