Bentonville, Arkansas – Walmart has made the decision to close its health centers and virtual care service due to the challenges faced in finding success with these offerings. The company had launched 51 health centers in five states in 2019 with the goal of helping people save money on their healthcare needs but has now concluded that the business model is not sustainable. This move comes after Walmart announced plans to expand its health center operations in several areas earlier in the year.
The closure of Walmart’s health centers follows similar struggles faced by other retailers like Walgreens, who acquired a majority stake in VillageMD a few years ago with plans to add hundreds of clinics to its stores. However, Walgreens recently announced the closure of 140 VillageMD primary care clinics in an effort to boost profitability. Building a network of primary care clinics can be challenging, even for established companies, given the shortage of primary care doctors in the United States.
Despite the shortage, many people may be reluctant to leave their current healthcare provider and may not be comfortable receiving care in a retail setting. Additionally, clinics often incur high costs to treat and improve the health of new patients who have not been seeing a doctor regularly. Walmart has not provided specific dates for when its health centers will close but has assured that employees can transfer to other Walmart or Sam’s Club locations.
The decision to close the health centers comes as Walmart continues to operate nearly 4,600 pharmacies and over 3,000 vision centers nationwide. The challenges faced in the healthcare sector highlight the complexities of providing accessible and affordable care to consumers. While the closure of the health centers may impact some customers, Walmart remains committed to serving its communities through its other healthcare offerings.