Walmart Shuts Down All Health Centers, Citing Lack of Profitability in Healthcare Business

In a surprising announcement on Tuesday, Walmart revealed that it will be shutting down all 51 of its health centers in five states in the US, as well as its telehealth operations. The company cited a lack of profitability in these businesses as the reason for the closures.

The healthcare sector is currently facing intense competition, with companies like Walgreens Boots Alliance, CVS Health Corp, and Amazon.com all vying for market share. Despite their efforts to expand their healthcare services during the pandemic, these companies have been experiencing losses.

Walmart’s decision to close its health centers comes at a time when many are questioning the sustainability of these types of businesses. In a blog post on Tuesday, the company stated that they had determined that there was no viable business model to continue operating the health centers. The centers were launched in 2019 and offered primary care, dental care, behavioral health, labs, X-ray, audiology, and telehealth services. Last year, Walmart had announced plans for further expansion to more than 75 locations, with 28 new health centers set to open in Texas, Arizona, and Missouri.

Despite this move from Walmart, other companies are still expanding their healthcare services. Amazon announced in February that it would be cutting several hundred jobs in its healthcare units, including clinic operator One Medical which was acquired for $3.5 billion. Additionally