Walmart’s Health Center Closure Leaves Many without Access to Essential Services

In a stunning move, Walmart announced on Tuesday that it will be closing all 51 of its health centers in five states in the U.S., as well as its telehealth operations. The big-box retailer stated that the decision was made due to the lack of profitability in these businesses. The company cited challenges in reimbursement from insurers and other payers, as well as increasing operating costs, as reasons for the closures.

This move from Walmart comes at a time when the healthcare sector is facing tough competition. Companies like Walgreens Boots Alliance, CVS Health Corp, and Amazon.com have been vying for a share in the market. Despite efforts to expand their healthcare services, especially during the pandemic, they have been experiencing losses.

In a blog post on Tuesday, Walmart stated that they had determined that there was no sustainable 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.

The closure of these centers will leave many employees without jobs and customers without access to essential healthcare services. However, Walmart did not provide a specific closure date for each center and stated that employees would have the opportunity to transfer to other Walmart or Sam’s Club locations. In contrast