Retail giant Walmart announced it is shutting down all 51 of its health centers across five states, as well as closing its virtual care offering.
The company stated the decision was difficult but necessary due to lack of profitability and sustainability in the challenging reimbursement environment and rising operating costs of the care business.
“Through our experience managing Walmart Health centers and Walmart Health Virtual Care, we determined there is not a sustainable business model for us to continue,” Walmart stated.
Walmart had hoped to open 70 more clinics by year’s end but determined it could not financially justify the effort amid higher costs and competition.
While the pharmacy and vision centers will remain open, the closure affects patients, providers and communities.
Experts note the underserved communities served will lose needed care options.
“It’s disappointing that Walmart wasn’t able to make it work because these patients need care and don’t have as many options,” Harvard Medical School professor Ateev Mehrotra said.
The decision comes as Walmart and other retailers face issues like shoplifting.
It signals challenges for reducing inflation, as household inflation expectations jumped in April according to another survey.
The summary focuses on Walmart’s closure of its health centers and virtual care due to financial unsustainability and the impact on access to care in underserved areas.
