Walmart Health Is Closing Its Doors
In a surprise move, Walmart has announced the closure of its Walmart Health segment, which encompasses 51 health centers across five states, as well as a virtual care offering. The company cited the fact that it is not a sustainable business model for it to continue.
“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,” the company said in a blog post. “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.”
Walmart does not yet have a specific date for when each health center will close, but said it is focused on continuity of care for patients and providing impacted associates with assistance as closures begin. As for those associates and providers:
- All 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 during that time or leave the company.
- After 90 days, if they do not transfer or leave, eligible associates will receive severance benefits.
- Our provider partners will continue to serve existing patients while clinics are open. Through their respective employers, these providers will be paid for 90 days, after which eligible providers will receive transition payments.
The retailer says it will continue to provide health and wellness services across the country through its nearly 4,600 retail pharmacies and more than 3,000 vision centers.
Mere weeks ago, Walmart Health announced expansion plans. It said it planned to open a full-service clinic in Houston, which would have marked its 11th health center in Texas. In total, the retailer planned to add eight health centers in the Houston metro area and 10 in the Dallas/Fort Worth region, and it was also slated to enter the Kansas City, Mo., market.
Walmart Health clinics provided primary care, X-rays, labs, behavioral health, dental, hearing, optical and more. The service was first launched in 2019 and boasted locations in Arkansas, Florida, Georgia, Illinois and Texas. More than 20 locations were brought online in Florida throughout 2022.
Each week, approximately 230 million customers and members visit Walmart’s more than 10,500 stores and numerous e-commerce websites under 46 banners in 24 countries. The Bentonville, Ark.-based company employs approximately 2.3 million associates worldwide. Walmart U.S. is No. 1 on Progressive Grocer’s 2023 list of the top food and consumables retailers in North America, while its Sam’s Club division is No. 8. PG also named Walmart one of its Retailers of the Century.
