Walmart announced Tuesday that it will close its health center and virtual care services after struggling to find success with its expansion into Texas.
The retail giant said after managing the clinics it launched in 2019 and expanding its telemedicine program, it concluded that “there is no sustainable business model for the company to continue.” Ta.
Walmart plans to close dispensaries across Arkansas, Florida, Georgia, Illinois and Texas, but the plan does not affect the company's 4,600 pharmacies and more than 3,000 vision centers, the company said in a release. Ta. Walmart has set up 51 health centers in five states with the goal of helping people save money on their medical needs.
Three clinics opened in Houston earlier this month, and others were scheduled to open in DeSoto and Fort Worth this week. Hundreds of jobs are expected to be affected, but specific numbers have not been released.
“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.
A spokesperson said refunds were proving difficult “for all types of insurance.”
The planned closure of Walmart Health Centers comes after the company announced in March 2023 that it plans to add more than 20 health centers to some stores this year. 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's announcement comes as Walgreen Village MD is closing stores in Florida, Illinois and Indiana. VillageMD has 83 locations in Texas and announced earlier this month that it has no plans to close any Texas clinics. Walgreens also took a $6 billion writedown on its investment in VillageMD in March.
Walgreens spent more than $5 billion several years ago to acquire a majority stake in VillageMD, with plans to add hundreds of clinics to its stores. In late March, the company announced the closure of 140 VillageMD primary care clinics and plans to close 20 more to increase profitability.
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.
A Walmart spokesperson said the clinic will be closed for the next 45 to 60 days.
Walmart still operates approximately 4,600 pharmacies and more than 3,000 vision centers in the United States.
The Dallas Morning News contributed to this report.
