Walmart is closing its health centers and virtual care service after struggling to find success with the offerings, the U.S. retailer said Tuesday.
The Bentonville, Arkansas-based company said that after managing the clinics it launched in 2019 and expanding its telehealth program, it concluded “there is not a sustainable business model for us to continue.”
Walmart had 51 health centers in five states, with the goal of helping people save money on their health care needs.
“This is a difficult decision, and like others, the challenging reimbursement environment and escalating operating costs create a lack of profitability that make the care business unsustainable for us at this time,” the company said in a statement.
The planned closure of the Walmart Health centers comes after the company announced in March 2023 that it planned to add more than two dozen health centers to some of its stores this year. At the time, the company said that it was looking to open 28 centers in 2024, mostly in Dallas and Houston. It also was planning to expand into the Phoenix and Kansas City, Missouri, areas.
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