Walmart Health Centers and Walmart Health Virtual Care, which launched as Covid-19 was emerging, are now facing closure after a short five-year stint.
In a press release issued by the retail giant, Walmart has announced the termination of these services citing the unsustainability of the Walmart Health buisness model.
Despite the company’s efforts to make “meaningful impacts with patients” over the past five years, all 51 health centers across five states as well as the virtual care offering have now been pulled from the market.
Walmart shutters Health business
According to Walmart, pressures from a challenging reimbursement environment and increasing operating costs ultimately led to the demise of its Health business, which was still in its infancy.
Walmart has not committed to closure dates for its 51 health centers, but promises to share more information soon.
Its 4,600 Pharmacies and 3,000 Vision Centers will continue to operate, with Walmart promising that the lessons learned from its short time in broader healthcare will be carried over to those businesses.
The shock news underscores the complexities and costs involved with expanding into the healthcare sector, especially for companies previously operating in other sectors. Competition has also added pressure in recent years, with the likes of Amazon and BestBuy expanding, snapping up smaller ventures, and entering new partnerships.
As part of its commitment to its workers, Walmart has confirmed that affected staff will either transfer to another Walmart or Sam’s Club location, or receive 90 days’ pay and severance benefits.
The company issues the following statement: “We are deeply grateful to these associates and providers for their caring service to patients in our communities and to the patients who trusted us with their care.”
