Walmart announced on Tuesday that all 51 of its Walmart Health centers across five states, as well as its virtual care services, will be closed. The decision to shutter the health centers was made due to a lack of sustainable business model, according to the retail giant. This move comes after Walmart struggled to recruit and retain healthcare professionals, which increased labor costs. The closures will not impact Walmart’s pharmacies and vision centers, which have thousands of locations nationwide.
The retail giant launched Walmart Health in 2019 with the promise of providing more affordable and accessible healthcare. In May 2021, Walmart acquired telehealth provider MeMD to enter the virtual healthcare services sector. However, staffing issues due to the pandemic and stiff competition from Amazon’s One Medical Centers posed challenges for Walmart Health. Despite plans to open 28 new Walmart Health centers in 2024, Walmart had to adjust its expansion goals due to difficulties with construction resources, pushing back its target of 75 locations nationwide to the end of 2025.
Citing sources familiar with the situation, CNBC reported that the health care worker shortages contributed to Walmart’s decision to close its health centers. The closures will affect locations in Arkansas, Florida, Georgia, Illinois, and Texas. This news comes as a surprise as Walmart had recently opened three new health centers in Texas earlier this month. Walmart’s decision to shutter its health centers raises questions about the future of retail healthcare and the challenges faced by companies trying to expand into the healthcare sector.
In late January, Walmart announced plans to open 150 new stores over the next five years while completing a remodeling project across 47 states. The closure of its health centers is a setback for Walmart’s healthcare expansion plans, but the retail giant remains committed to its overall growth strategy. The impact of Walmart’s decision on the healthcare industry and the future of retail healthcare remains to be seen. Despite this setback, Walmart continues to focus on its core businesses, including its pharmacies and vision centers, which are unaffected by the closures of its health centers.
