Walmart, the retail giant, has announced the closure of all its health care clinics and virtual medical services due to profitability challenges. This decision marks a significant shift from five years ago when Walmart entered the health care industry by launching medical centers offering primary and urgent care services.
The company cited a “challenging reimbursement environment and escalating operating costs” as the reasons behind the closures. The affected clinics are located in Arkansas, Florida, Georgia, Illinois, Missouri, and Texas, with specific closure dates yet to be determined.
Employees impacted by the closures have the option to transfer to other Walmart or Sam’s Club locations. Those who choose not to transfer will receive 90-days pay and severance benefits. Despite the closures, Walmart will continue to operate its pharmacies and vision centers across the U.S.
Walmart’s decision to exit the health care business comes at a time when other retailers, like Amazon, are also exploring opportunities in the health and wellness sector. Amazon runs a web pharmacy and telehealth service called Amazon Clinic, which provides treatment for less serious conditions.
The closure of Walmart’s health care clinics highlights the challenges faced by retailers venturing into the health care industry. Amazon, for example, recently shut down a hybrid virtual and in-home care service, underscoring the complexities of operating in the health care space.