In a significant change in direction, Walmart has announced that it will be shutting down all of its health care clinics and virtual medical services due to an inability to make them profitable. This decision marks a major shift for the retail giant, which had expanded into the health care industry five years ago by offering various medical services in addition to its superstores.
Citing challenging reimbursement environments and escalating operating costs as the main reasons for the closures, Walmart described the decision as a difficult one. The clinics being shuttered are located in five states: Arkansas, Florida, Georgia, Illinois, Missouri, and Texas. Specific closure dates have not yet been announced by the company.
Walmart is not alone in facing difficulties in the healthcare sector. Amazon, for example, operates a web pharmacy and telehealth service called Amazon Clinic but had also faced challenges when trying to enter this business. Despite this move, Walmart reassured customers that it will continue operating its nearly 4,600 pharmacies and more than 3,000 vision centers across the U.S.
Affected employees are given the option to transfer to other Walmart or Sam’s Club locations or receive 90-days pay and severance benefits if they choose not to transfer. This decision marks a turning point for Walmart’s approach to healthcare services as they focus on maintaining their existing offerings while addressing financial challenges associated with running these facilities efficiently.