Due to insufficient profitability, Walmart has opted to shut down its newly established health centers. The retail titan revealed its decision to close all 51 centers launched across five states since 2019. Additionally, Walmart will discontinue its virtual care program, which it initiated following the acquisition of telehealth provider MeMD in 2021.
Retail giants such as Walmart, BestBuy, and Amazon have each ventured into capturing a portion of Americans’ substantial $3.6 trillion annual health expenditure. However, despite their efforts to enhance convenience and affordability in healthcare, these retail heavyweights have encountered a far more intricate reality than anticipated.
Walmart stated today that this decision was tough, acknowledging the challenging reimbursement landscape and rising operating expenses, which have rendered the care business financially unviable for them at present. This marks a reversal from last year’s plans, when Walmart announced intentions to double its health clinic count and enter two new states by 2024.
Walmart faced competition from established urgent care facilities as well as familiar retail adversaries in its healthcare venture. Amazon finalized its acquisition of membership-based healthcare provider One Medical for $3.9 billion last year. Similarly, BestBuy forged partnerships with healthcare providers in 2023, including a home healthcare initiative with Atrium Health.
Walmart declined to provide precise closure dates for individual Walmart Health Centers but assured that they would continue serving existing patients until their closure. The company clarified that its 4,600 pharmacies and approximately 3,000 Vision Centers will remain unaffected by these changes.
