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BENTONVILLE, Ark. — Walmart today said it has made the “difficult decision” to close its Walmart Health and Walmart Virtual Care clinics, citing a lack of profitability.
“The decision to close all 51 health centers across five states and shut down the virtual care offering was not easy. We understand this change affects lives – the patients who receive care, the associates and providers who deliver care and the communities who supported us along the way,” the company said in an unsigned post on its in-house blog. “This is a difficult decision, and like others, the challenging reimbursement environment and escalating operating costs create a lack of profitability that make the care business unsustainable for us at this time.”
The decision comes just a few weeks after the company announced an expansion of of the program. Walmart said it was expecting to add 22 Walmart Health clinics this year, including 18 in Texas. Those additions would have taken the number of physician-staffed health clinics to 70. The company also said it was planning to introduce the clinics to a sixth market, Arizona, in 2025.
Walmart said it remains committed to health and wellness services. “For 40 years, we have provided these high quality, accessible and affordable points of care that are integral to their respective communities.”
Walmart will continue to operate nearly 4,600 pharmacies and more than 3,000 vision centers in the United States.
“Our priority will be ensuring the people and communities who are impacted are treated with the utmost respect, compassion and support throughout the transition,” according to the blog post. “We do not yet have a specific date for when each center will close but will share as soon as decisions are made.”
Walmart introduced Walmart Health centers in 2019 to fill a gap in patient care by providing services beyond the diagnostic tests and immunizations that characterize much of the work performed at retail clinics. The centers occupy about 5,400 square feet of space inside Walmart Supercenters. Each features Walmart Health’s suite of health services, encompassing primary and urgent care, labs, x-ray and diagnostics, telehealth, behavioral health, dental health, optometry and hearing services.
The associates and providers who staff the clinics remain a priority, Walmart said. All are eligible to transfer to any Walmart or Sam’s Club location. Those who don’t transfer will be paid for 90 days of work. Eligible employees who don’t transfer or leave the company will receive severance pay.
“Our culture of innovating and trying new formats and services has helped our company become stronger and better able to serve customers,” according to the blog post. “We will continue to innovate as we grow our core businesses and launch even more services like the Walmart Healthcare Research Institute and health programs to join our fresh food and O-T-C offerings in helping our customers live better.”
