Walmart is not making enough money from its new health centers, so it decided to close. The retail giant announced today that it will close all 51 health centers it has opened in five states since 2019. Walmart will also ditch its virtual care program after acquiring telehealth provider MeMD in 2021.
“We determined that there is no sustainable business model for us to continue,” Walmart said in a statement. advertisement today.
“We determined that there is no sustainable business model for us to continue.”
Retail giants like Walmart, BestBuy and amazon Each of them has tried to get their own share of the $3.6 trillion Americans spend on health care each year. But while retail heavyweights thought they could make profits by making healthcare more convenient and affordable, the reality has been much more complicated.
“This is a difficult decision and, like others, the challenging reimbursement environment and rising operating costs create a lack of profitability that makes the healthcare business unsustainable for us at this time,” Walmart said today. It's a radical change from last year when Walmart said it planned to double its number of health clinics and expand to two new states in 2024.
Walmart did not share specific dates for when each Walmart Health Center would close its doors, but said it would continue to serve existing patients as long as they remain open. The company's 4,600 pharmacies and approximately 3,000 vision centers will not be affected.
