Walmart, the retail giant that has been offering health services for five years, has recently announced the closure of its health centers and virtual care service. The company had previously planned to expand its presence by adding over two dozen centers in some of its stores in 2024, but ongoing struggles to find success with these offerings have led to their closure.
The decision to close the health centers was made after Walmart’s management realized that there is not a sustainable business model for these services. Despite this, Walmart still maintains nearly 4,600 pharmacies and over 3,000 vision centers in the U.S.
Walmart opened its first health center five years ago with the goal of helping people save on their healthcare needs. However, after managing the health centers and virtual service, Walmart has determined that there is not a profitable way to continue operating these services. The company cited challenging reimbursement environments and escalating operating costs as reasons for the lack of profitability in the care business.
Despite the closure of the health centers and virtual care service, Walmart remains committed to providing quality healthcare services to its customers through its existing pharmacies and vision centers. The company will continue to explore new ways to improve access to healthcare services while ensuring profitability in this business area.