Walmart (WMT) recently announced the closure of 51 health centers and the discontinuation of its virtual care services, citing a lack of sustainable business model for the retail giant. This decision came shortly after news that UnitedHealth (UNH) would also be shutting down its Optum virtual health business.
In contrast, Amazon (AMZN) has been more aggressive in the health clinic business following its $3.9 billion acquisition of One Medical. The lack of success with Walmart Health Centers is seen as a positive for CVS Health (CVS), which fully embraced the health center model after acquiring Aetna in 2017. Despite the closure of the health centers, Walmart still maintains nearly 4,600 pharmacies in its stores and has been expanding their range of services. The company also operates over 200 vision centers.
The retreat from virtual care by UnitedHealth and Walmart reflects the challenges faced by companies like Teladoc (TDOC) in the rapidly evolving healthcare industry. In stock market activity, Walmart’s stock dipped slightly, while Amazon and CVS saw modest gains. Walmart’s stock has found support at its 50-day moving average as it forms a flat base with a 61.66 buy point. Investors may consider a move past 60.89 as an early entry opportunity.
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It was reported that there were rumors circulating during this time that Walmart may acquire Humana (HUM). However, Amazon (AMZN) has been more aggressive in the health clinic business following its $3.9 billion acquisition of One Medical.
Walmart initially launched the health centers in 2019 as part of a larger effort to expand its health services offerings.
The lack of success with Walmart Health Centers is seen as a positive for CVS Health (CVS), which fully embraced the health center model after acquiring Aetna in 2017.
Despite this setback, Walmart still maintains nearly 4,600 pharmacies in its stores and has been expanding their range of services.
The company also operates over 200 vision centers.