Walmart Closes Health Centers and Virtual Care Service due to Unsustainable Business Model

The closure of Walmart’s health centers and virtual care service has been announced by the retail giant due to ongoing struggles to find success with these offerings. Despite opening its first health center five years ago with the goal of helping people save on their healthcare needs, Walmart has determined that there is not a sustainable business model to continue operating these services.

Walmart had previously announced plans to expand its health center presence by adding over two dozen centers in some of its stores in 2024. However, the company cited challenging reimbursement environments and escalating operating costs as reasons for the lack of profitability in the care business.

The decision to close the health centers comes as a surprise, given that Walmart currently operates 51 health centers in five states. However, employees working at the health centers will be eligible to transfer to other Walmart or Sam’s Club locations. Despite the closure of the health centers and virtual care service, Walmart still maintains nearly 4,600 pharmacies and over 3,000 vision centers in the U.S., which will continue to provide customers with access to healthcare services.