Walmart will close all of 51 of its health care centers across five states and end virtual care services, the company announced Tuesday.
After five years since the launch of Walmart Health centers, the company said it determined “there is not a sustainable business model for us to continue.”
The Walmart Health centers were started in 2019 and were located next to Walmart Supercenters. The health centers offer labs, X-rays, primary and urgent care, dental work and behavioral health services. The centers are located in Arkansas, Florida, Georgia, Illinois and Texas.
“The decision to close all 51 health centers across five states and shut down the virtual care offering was not easy,” the company wrote in a statement. “We understand this change affects lives – the patients who receive care, the associates and providers who deliver care and the communities who supported us along the way.”
“This is a difficult decision, and like others, the challenging reimbursement environment and escalating operating costs create a lack of profitability that make the care business unsustainable for us at this time,” the statement continued.
Walmart did not release specific dates for the closures, but said all impacted associates are eligible to transfer to any other Walmart or Sam’s Club location.
All associates will be paid for 90 days, unless they transfer to another location or leave the company, Walmart said. Those who do not transfer or leave after 90 days will receive severance benefits.
The company said it will focus on its nearly 4,600 pharmacies and over 3,000 vision centers. The pharmacies will continue to offer immunizations, testing and treatment services and access to specialty pharmacy medication and care.
“Over the past few years, the importance of Pharmacies has continued to grow, and we have expanded the clinical capabilities of the services we provide,” the company said.
