Walmart seeks buyers for closed health clinics

ARKANSAS, UNITED STATES — Retail giant Walmart has been actively seeking potential buyers for its shuttered health clinics.
According to a Fortune report, the company has engaged in discussions with various entities, including health insurance companies like Humana, to recoup some of its significant investment in the clinics.
Although it is unclear if any talks are ongoing, Walmart’s efforts indicate a strong desire to recover part of the capital poured into the venture.
Walmart’s healthcare divestment strategy
The sequence of events surrounding the closure and subsequent sale discussions has puzzled some involved parties.
The shutdown was announced on April 30, followed by the start of sale talks, potentially reducing Walmart’s leverage in negotiations. The clinics were scheduled to close on June 28, leaving patients and employees to seek alternatives.
Despite the challenges with the physical clinics, Walmart sold its virtual care business, MeMD, to healthcare tech company Fabric for an undisclosed sum.
This move allowed Walmart to recoup some investment, though no similar announcements have been made regarding the physical clinics.
Potential buyers and industry impact
Several types of insurance providers, known as “payers” in the industry, could benefit from acquiring Walmart’s clinics.
Companies like Humana, which already operate numerous primary care facilities, could expand their presence through such a deal.
Other insurers without existing clinics might consider taking over Walmart’s facilities to enter the market without the need to build their own clinics from scratch.
Walmart’s healthcare journey
Walmart’s interest in the healthcare sector dates back to at least 1991, when founder Sam Walton expressed concerns about the industry’s high costs.
Over the years, the company has experimented with various healthcare approaches, including the launch of the comprehensive Walmart Health clinics in 2019. These clinics promised transparent and affordable pricing, particularly for those lacking adequate insurance.
Future prospects and industry implications
Despite the initial promise, challenges in the business model led to the closure of the Walmart Health clinics. However, another company could continue the venture with a rebranded approach, potentially bringing affordable healthcare to underserved communities.
As a former Walmart Health marketing leader told Fortune, “There was so much opportunity to bring access to affordable health care to rural and underserved America, and it’s gone.”
The future of these facilities now hinges on the outcome of Walmart’s ongoing sale discussions.