Walmart announced the closure of its Walmart Health and Walmart Health Virtual Care health business line just five years after its launch.
Spread out over five states, Florida stands to be the most affected as 23 locations are located in its territory, followed closely by Georgia with 17. Texas (7), Arkansas (3) and Illinois (1) complete the 51 locations.
"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, adding that it will now focus its health business on its nearly 4,600 pharmacies and more than 3,000 vision centers across the United States.
Walmart first introduced its health centers back in 2019. Located next to Walmart Supercenters, they provide a range of services at a low cost, including medical, dental and behavioral health care. Just last year, the company announced that it planned to add more than a dozen health centers, expanding its reach to cities like Dallas, Houston, Phoenix and Kansas City.
The company, based in Bentonville (Arkansas), has not given more details about the specific closing date of each center. It's also unclear how many jobs will be eliminated as a result of the health center closures. The company, however, did say it's allowing eligible employees to transfer to other parts of its business, including Sam's Club locations. Employees may also be eligible for severance benefits.
"Now, we are focused on the continuity of patient care and on providing respect and assistance to the affected workers, as we begin the process of closing the healthcare centers," the press release concluded.
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