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Walmart is closing its health centers and virtual care service as the retail giant has struggled to find success with the offerings.
Walmart, which launched its health centers five years ago, said Tuesday that it's learned through managing the health centers and virtual service that “there is not a sustainable business model for us to continue.”
Walmart had 51 health centers in five states, with the goal of helping people save money on their health care needs. The Bentonville, Arkansas-based company opened its first health center in 2019.
“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 company said in a statement.
The realization of the unsustainable business model comes after Walmart announced in March 2023 that it planned to add more than two dozen health centers to some of its stores this year. At the time, the company said that it was looking to open 28 centers in 2024, mostly in Dallas and Houston. It also was planning to expand into the Phoenix and Kansas City, Missouri, areas.
Walmart does not yet have specific dates for when its health centers will close, but said that it will share that information when it's available. The company said that employees that worked at its health centers are eligible to transfer to any other Walmart or Sam’s Club location.
Walmart still runs almost 4,600 pharmacies and more than 3,000 vision centers in the U.S.