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

Walmart has recently announced the closure of its health centers and virtual care service, citing a lack of sustainability in the business model. The retail giant had launched its health centers five years ago with the goal of helping people save money on their healthcare needs. However, despite initial expansion, Walmart has determined that the challenging reimbursement environment and escalating operating costs made the care business unsustainable at this time.

Walmart had previously planned to add more than two dozen health centers to some of its stores in 2023. The company had been looking to open 28 centers in 2024, mostly in Dallas and Houston, with plans to expand into the Phoenix and Kansas City, Missouri areas. However, these plans have now been shelved as Walmart shifts its focus to other healthcare offerings.

The Bentonville, Arkansas-based company has not yet provided specific dates for when its health centers will close, but employees who worked at these centers will have the opportunity to transfer to other Walmart or Sam’s Club locations. While the closure of the health centers signifies a shift in Walmart’s healthcare offerings, the company still operates almost 4,600 pharmacies and more than 3,000 vision centers in the U.S., which remain an important part of its healthcare strategy.