Walmart abandons healthcare clinics, cites profitability woes
WASHINGTON, UNITED STATES — Retail giant Walmart has announced the closure of all 51 of its healthcare clinics across five U.S. states and shut its virtual healthcare operations, citing a lack of profitability.
Walmart’s healthcare clinics, launched in 2019, offered a range of services, including primary care, labs, X-rays, dental care, and behavioral health support.
The clinics were strategically located adjacent to Walmart Supercenters, aiming to provide local communities with accessible and affordable healthcare options.
Ballooning operational costs
However, the company stated that escalating operating costs and challenges with reimbursement rates from both public and private insurers made the healthcare business unsustainable.
“Healthcare is expensive to run. We were finding that the increased labor and operating costs environment, like with reimbursement, both public and private, made it difficult (to run the business) and obvious we had to close,” Walmart spokeswoman Marilee McInnis told Reuters.
The closure will impact clinics in Arkansas, Florida, Georgia, Illinois, and Texas, with over half of the locations situated in Florida.
Impact on patients and employees
Patients with upcoming appointments will still receive care, but Walmart has not yet announced a definitive timeline for the closure of each clinic. The company is also working to direct them to alternative providers within their insurance networks.
Employees who worked at Walmart’s health centers are eligible to transfer to any other Walmart or Sam’s Club location, and those who are let go will receive severance pay, according to Healthcare Dive.
While the healthcare clinics are shutting down, Walmart’s nearly 4,600 pharmacies and over 3,000 vision centers will remain operational.
The company plans to focus its healthcare efforts on these existing businesses, as well as exploring new services and programs.
The shutdown of Walmart clinics comes as other retailers struggle with primary care businesses. Walgreens is scaling back its VillageMD primary care clinic chain, which is in the process of closing 160 VillageMD locations.
