On Tuesday, Walmart announced that it would be shutting down its health centers and virtual care service due to a lack of success with these offerings. The retail giant had 51 health centers in five states, including 23 in Florida, with the intention of helping people save money on their healthcare needs. However, after managing these clinics since their launch in 2019 and expanding their telehealth program, Walmart concluded that there was not a sustainable business model to continue.

The company stated in a press release that the decision to close the health centers was difficult, but due to the challenging reimbursement environment and escalating operating costs, the care business was no longer profitable or sustainable. Reimbursement from all types of insurance was proving to be a significant challenge for Walmart. The company has not provided specific dates for when the health centers will close, but will do so once the information is available. Employees working at these health centers are eligible to transfer to any other Walmart or Sam’s Club location.

Despite the closure of its health centers, Walmart still operates almost 4,600 pharmacies and more than 3,000 vision centers in the U.S. The Florida locations of the health centers included Brandon, Hudson, Jacksonville, Kissimmee, Lutz, Middleburg, New Port Richey, Ocoee