In a surprising move, Walmart has decided to close all 51 of its Walmart Health centers across five states and its Walmart Health Virtual Care telehealth offering. The company cited challenging reimbursement environment and escalating operating costs as reasons for the closure, stating that these operations were no longer sustainable due to lack of profitability.
Despite the closure of the health centers and telehealth offering, Walmart will continue to provide other health and wellness services through its 4,600 Pharmacies and 3,000 Vision Centers. The company emphasized its commitment to innovation and growth in its core businesses, citing the launch of the Walmart Healthcare Research Institute and new health programs to support customer wellbeing.
This decision marks a significant reversal from Walmart’s previous announcement about expanding its health centers in Texas. The retailer initially launched its first Walmart Health center in 2019, aiming to provide low-cost comprehensive care and gain valuable experience for future operations in the healthcare sector.
The closure of Walmart’s telehealth offering comes shortly after UnitedHealth Group announced the shutdown of its Optum Virtual Care business. These developments highlight the challenges within the healthcare industry and the need for sustainable business models to navigate these complexities.