Walmart is closing its health centers and virtual care service after struggling to find success with the offerings, the U.S. retailer said. The company concluded 'there is not a sustainable business model for us to continue' after managing the clinics it launched in 2019 and expanding its telehealth program.
The challenging reimbursement environment and escalating operating costs created a lack of profitability, making the care business unsustainable for Walmart. Reimbursement issues were highlighted concerning 'all types of insurance,' leading to the closure decision.
Walmart's closure decision for its health centers contrasts with previous plans of expansion, including adding more than two dozen centers in 2024. This move reflects the struggles in the retail sector, where companies like Walgreens are also facing challenges in their clinic initiatives.
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