In a surprising announcement, Walmart has decided to close all 51 of its health centers in five states in the U.S., as well as its telehealth operations. The big-box retailer stated that this move was made due to the lack of profitability in these businesses. According to Walmart, challenges in reimbursement from insurers and other payers, as well as increasing operating costs, were the reasons behind the closures.
This decision comes at a time when the healthcare sector is facing tough competition from companies like Walgreens Boots Alliance, CVS Health Corp and Amazon.com. Despite efforts to expand their healthcare services, especially during the pandemic, they have been experiencing losses.
Walmart’s decision to shut down its health centers was made after determining that there was no sustainable business model to continue operating them. The centers were launched in 2019 and offered primary care, dental care, behavioral health, labs, X-ray, audiology and telehealth services. Last year, Walmart had announced plans for further expansion to more than 75 locations with 28 new health centers set to open in Texas, Arizona and Missouri. However, these plans have now been abandoned due to the lack of profitability.
The company did not provide a specific closure date for each center but employees will have the opportunity to transfer to other Walmart or Sam’s Club locations. In contrast