Walmart plans to close its health centers and virtual care services after struggling to find success with the service. us retailer he said on Tuesday.
The Bentonville, Ark.-based company has managed clinics it launched in 2019 and expanded its telemedicine program, leading to the conclusion that “there is no sustainable business model for the company to continue.” He said he did.
Walmart has opened 51 health centers in five states with the goal of helping people save money on the health care they need.
“This is a difficult decision, and like others, the difficult reimbursement environment and increasing operating costs have created a lack of profitability, making the long-term care business unsustainable at this time,” the company said in a statement. said.
The planned closure of Walmart Health Centers comes after the company announced its plans in March 2023. Add 2 dozen or more This year, it introduced health centers in some stores. At the time, the company said it was looking to open 28 centers in 2024, primarily in Dallas and Houston. The company also planned to expand into the Phoenix and Kansas City, Missouri, areas.
Walmart is one retailer that has tried to establish a presence by partnering with clinics and medical institutions. create health care Now more accessible. But some have struggled.
walgreens spent more than $5 billion a few years ago to acquire a majority stake in VillageMD, with plans to add hundreds of clinics to its footprint. In late March, the company announced the closure of 140 VillageMD primary care clinics and plans to close 20 more to increase profitability. The announcement comes after Walgreens recorded a $5.8 billion after-tax impairment charge for Village MD in its most recent quarter due to asset value adjustments.
There is a shortage of primary care physicians in the United States, but building a network of primary care clinics can be difficult even for established companies, medical researchers and analysts say.
Many people who already see a doctor are reluctant to leave the hospital, and some may not want to receive treatment in a store or retail setting. Clinics may also have to spend significant amounts of money to treat and improve the health status of new patients who have not been seen by a doctor.
Walmart has not yet given a specific date for when its health centers will close, but said it will share information as it becomes available. The company said employees who worked at its health centers are eligible to transfer to other Walmart or Sam's Club stores.
Walmart still operates approximately 4,600 pharmacies and more than 3,000 vision centers in the United States.
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AP Business Writer Ann D'Innocenzio in New York and AP Health Writer Tom Murphy in Indianapolis contributed to this report.
