Walmart Health Clinics and Virtual Services to Close
In a surprising move, Walmart has announced the closure of all its health care clinics and virtual medical services. The retail giant cited profitability challenges as the reason behind this decision.
Five years ago, Walmart made a significant entry into the health care sector by opening medical centers next to its superstores, providing primary and urgent care, x-rays, and dental services. However, the company now describes this shift as a "difficult decision" due to an unsustainable reimbursement environment and rising operating costs.
The affected clinics are located in Arkansas, Florida, Georgia, Illinois, Missouri, and Texas. Specific closure dates have not been provided by Walmart yet.
Employees impacted by the closures have the option to transfer to other Walmart or Sam's Club locations. Those who choose not to transfer will receive 90 days' pay and severance benefits.
Despite this move, Walmart reassured that it will continue to operate its extensive network of pharmacies and vision centers throughout the United States.
While Walmart is discontinuing its health care services, other companies are also venturing into the health and wellness industry.
Amazon has ventured into the healthcare industry with its web pharmacy and telehealth service, known as Amazon Clinic. This service utilizes third-party medical providers to assist in treating minor conditions such as pink eye.
In 2022, the e-commerce giant made a surprising decision to shut down a separate hybrid virtual and in-home care service that it had been developing for years. This move highlighted the challenges that retailers and other entities encounter when trying to enter the healthcare sector.
