Walmart to Close Walmart Health and Walmart Health Virtual Care Due to Lack of Profitability

Walmart to Close Walmart Health Centers Due to Lack of Profitability

Walmart has announced the closure of its Walmart Health and Walmart Health Virtual Care services, citing a lack of profitability and sustainability in the business model. The decision comes after the health centers opened in 2019 and operated across five states.

The challenging reimbursement environment and escalating operating costs were identified as key factors contributing to the closure. Walmart stated that it does not have a specific date for when each center will close but will provide that information as soon as decisions are made.

Despite the closure, Walmart emphasized its commitment to ensuring continuity of care for patients and providing support to impacted associates during the transition process. The clinics will continue to serve patients until they are closed, and providers will be paid for 90 days following the closure.

All associates are eligible to transfer to other Walmart or Sam’s Club locations, with a 90-day pay guarantee unless they transfer or leave the company during that time. After 90 days, eligible associates will receive severance benefits if they do not transfer or leave.

Looking ahead, Walmart plans to leverage its extensive network of pharmacies and vision centers to provide health and wellness services nationwide. The company aims to expand its clinical capabilities and offer a range of services, including testing, treatment, specialty pharmacy medication, and health screenings.

In addition to its healthcare initiatives, Walmart is set to introduce a premium food line called Bettergoods to compete with other major grocers. However, the company’s share prices fell last week following the announcement of Amazon’s low-cost grocery delivery program, which includes a $9.99 monthly plan for Prime members and EBT cardholders.

As Walmart navigates these changes in the healthcare and grocery industries, the company remains focused on delivering quality services to its customers and communities.