Walmart Shuts Down Its Health Centers, Citing Lack of Profitability in the Healthcare Industry

In recent news, Walmart has decided to close all 51 of its health centers that it had opened across five states since 2019, as well as its virtual care program. The retail giant, which acquired telehealth provider MeMD in 2021, cited a lack of profitability as the reason for shuttering these healthcare services. Walmart stated in an announcement that there is not a sustainable business model for them to continue operating these health centers.

Retail giants like Walmart, BestBuy, and Amazon have been trying to tap into the $3.6 trillion Americans spend on healthcare each year. However, the profitability of these ventures has been more challenging than expected. Walmart mentioned that the reimbursement environment and operating costs have made the care business unsustainable for them at this time. This decision is a change of direction from their previous plans to expand their health clinics and enter new states by 2024.

Walmart did not provide specific dates for when each Walmart Health Center would close, but stated that they would continue to serve existing patients until then. The closure of these health centers will not impact Walmart’s pharmacies or Vision Centers, of which there are approximately 4,600 and 3,000 respectively.