In a surprising move, Walmart has announced the closure of all 51 of its Walmart Health locations. This decision marks a shift in direction for the retail giant, which had previously planned to expand its primary care services. The closure of the clinics also includes shutting down its virtual care offering, just one month after announcing plans to open 22 new locations.
According to Walmart, the decision to close the clinics was due to a lack of sustainable business model. The challenging reimbursement environment and escalating operating costs have made the care business unsustainable for the company at this time. Despite the closures, Walmart will continue to provide health and wellness services through its pharmacies and Vision Centers located across the country.
Walmart Health was launched in 2019 with the goal of providing a comprehensive health care experience in one location. Services offered at the clinics included dental, primary care, behavioral health, x-ray, labs, and more. The clinics were located in five states: Arkansas, Florida, Georgia, Illinois, and Texas.
Employees of the closed clinics will have the option to transfer to other Walmart or Sam’s Club locations. They will be paid for 90 days unless they choose to transfer or leave the company during that time. After 90 days, eligible associates will receive severance benefits. Provider partners of the clinics will continue to serve existing patients until the clinics close, with transition payments available to those eligible.
The closure of these clinics is expected within
