The closure of Walmart’s health centers and virtual care service has been announced by the retail giant due to their inability to find success with these offerings. Five years ago, Walmart launched its health centers with the goal of helping people save money on their healthcare needs. However, the company has now determined that there is not a sustainable business model for these services to continue.
Walmart had 51 health centers in five states, with its first health center opening in 2019. Despite initially expanding its health center operations, the challenging reimbursement environment and escalating operating costs made the care business unsustainable at this time. This decision comes after Walmart had previously announced plans to add more than two dozen health centers to some of its stores in 2023. The company had been looking to open 28 centers in 2024, mostly in Dallas and Houston, with plans to expand into the Phoenix and Kansas City, Missouri areas.
The closure of the health centers signifies a shift in Walmart’s healthcare offerings, but the company still operates almost 4,600 pharmacies and more than 3,000 vision centers in the U.S. The specific dates for when the health centers will close have not yet been provided by Walmart. However, employees who worked at these centers will have the opportunity to transfer to other Walmart or Sam’s Club locations.