Walmart Considers Selling Closed Health Centers as Profitability Struggles Continue

In recent news, Walmart has revealed that it is considering selling its closed health centers in order to recoup the significant investments made in the unsustainable clinics. The retail giant has been engaged in discussions with health insurance companies such as Humana, but the details of these talks remain unclear. Late April saw Walmart announce plans to close all 51 of its health care clinics due to challenges in reimbursement and increasing operating costs that led to a lack of profitability.

Despite this setback, Walmart continues to operate its 4,600 pharmacies and 3,000 vision centers. In early June, the retailer’s stock reached an all-time high after JPMorgan upgraded its rating, highlighting a strong balance of defense and offense in response to a challenging consumer environment.

In 2019, Walmart opened its first Walmart Health center in Dallas, Georgia, offering services such as primary care, labs, X-rays, and counseling at transparent prices regardless of insurance status. However, later that year the company announced the closure of its Walmart Health Virtual Care unit due to a decline in virtual care visits following the peak of the Covid-19 pandemic.