On Tuesday, Walmart announced the closure of all 51 of its health care centers across five states and the discontinuation of virtual care services. After five years since the launch of Walmart Health centers, the company has determined that there is not a sustainable business model for them to continue.
The Walmart Health centers, which were established in 2019 and located next to Walmart Supercenters, offered a variety of services including labs, X-rays, primary and urgent care, dental work, and behavioral health services. These centers were primarily located in Arkansas, Florida, Georgia, Illinois, and Texas.
In a statement, Walmart expressed that the decision to close all 51 health centers and end virtual care services was a difficult one that would impact not only patients but also associates and communities that supported them. Due to challenges with reimbursement and rising operating costs, the health care business was deemed unsustainable at this time.
While Walmart did not provide specific closure dates, they assured that impacted associates would have opportunities to transfer to other Walmart or Sam’s Club locations. Associates will receive pay for 90 days during this transition period. Those who do not transfer or leave the company after this period will receive severance benefits.
Walmart plans to shift its focus on its numerous pharmacies and vision centers numbering close to 4600 and over 3000 respectively. The pharmacies will continue to provide immunizations, testing and treatment services including access to specialty pharmacy medication and care. In recent years, the company has expanded the clinical capabilities of its pharmacy services to meet increasing demand.