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Walmart is closing its health centers in the United States and will cease offering medical care. On Tuesday, April 30, the company also announced that it would end its virtual care services.
Walmart Health provides affordable health services with transparent pricing for key services. It accommodates all local customers, regardless of their insurance status. In any case, the retail giant decided to shut down all 51 of its Walmart Health clinics in six states due to low profits.
Failure to Reach Success
Walmart did not reach the success level it hoped for with its health clinics and virtual care services. Rather, it struggled to keep the business going because earnings from them were low. The company was supposed to expand the clinics further but the disappointing market performance pushed the company to close the health centers instead.
NBCDFW5 News reported that Walmart Health centers in Arkansas, Florida, Georgia, Illinois, Missouri, and Texas are closing. The company clarified that despite this plan, its 4,600 pharmacies and over 3,000 vision centers will continue to operate as they are not affected by the closures.
Layoffs Following the Discontinuation of the Clinics
The company entered the healthcare business several years ago, and Walmart Health clinics were built next to its superstores. Patients could get primary and urgent care, such as X-rays, lab work, dental services, and even behavioral health care, at cheaper rates in the facilities, so the shutdown would be a big disappointment to the locals who avail of these services.
At any rate, this will also result in layoffs, and it was reported that several hundred jobs will be affected. There is no exact figure yet as to how many individuals are set to lose their jobs, as Walmart did not provide this detail. The specific dates of closures for each location will be announced by Walmart as soon as decisions are made.
“The decision to close all 51 health centers across five states and shut down the virtual care offering was not easy,” Walmart said in the announcement. “We understand this change affects lives – the patients who receive care, the associates and providers who deliver care and the communities who supported us along the way. This is a difficult decision, and like others, the challenging reimbursement environment and escalating operating costs create a lack of profitability that makes the care business unsustainable for us at this time.”
Photo by: Marques Thomas/Unsplash
