The Retail Giant’s Healthcare U-Turn: Walmart Closes Clinics and Pharmacies in Contrast to Amazon’s Expansion

In recent years, Walmart has been expanding its healthcare services by opening clinics at retail stores across multiple states. The clinics provided primary care, behavioral health, labs, X-rays, and virtual care through walmarthealth.com. However, the company has recently announced that it will be shutting down 51 of these clinics, as well as its virtual care operation due to a challenging reimbursement environment and rising operating costs. This move by Walmart is in contrast to Amazon’s expansion of benefits for Prime members, who now have access to online services and visits at hundreds of One Medical clinics in various cities across the US.

Despite the closure of its health clinics, Walmart will continue to operate pharmacies at approximately 4,600 stores nationwide. Over 4,000 of these locations are in what Walmart refers to as “medical provider shortage areas.” The company sees its pharmacies as an essential entry point for healthcare services. On the other hand, Walgreens recently announced that it will be closing 160 Village MD clinics after experiencing significant financial losses. This decision was made after receiving new information about reimbursements from insurers and is expected to happen over the next 45 to 90 days.