Walmart is closing all of its health care clinics and virtual medical services, the nation’s largest retailer announced Tuesday, citing its inability to make its businesses profitable.
The announcement marks a sharp turnaround for Walmart, which launched into health care five years ago by opening medical centers next to its big box stores and offering primary and urgent care, X-rays and dental care.
Walmart described its sudden change in direction as a “difficult decision” and cited a “challenging reimbursement environment and increasing operating costs” as unsustainable.
The clinics that will be closed are in five states: Arkansas, Florida, Georgia, Illinois, Missouri and Texas, according to Walmart, which said it does not yet have specific closure dates.
Employees affected by the closures may transfer to other Walmart or Sam’s Club locations, and those who do not choose to change stores will receive 90 days of pay and severance, the company said.
The retailer will continue to operate its nearly 4,600 pharmacies and more than 3,000 vision centers across the United States, it said.
Walmart isn’t alone in looking to expand into the health and wellness sector.
Amazon operates an online pharmacy and telehealth service called Amazon Clinic, which uses third-party medical providers to help treat less serious conditions, such as pink eye.
The e-commerce giant shut down a separate hybrid virtual and home care service in 2022 that it had spent years developing, a surprising move at the time, illustrating the struggles of retailers and others. face to enter the healthcare sector.
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