Retail giant Walmart announced on Tuesday that it will be closing all 51 of its health centers in five states across the United States, as well as discontinuing its telehealth nursing services in an effort to optimize its operations in the country.
The affected states include Arkansas, Florida, Georgia, Illinois, and Texas. The exact number of employees impacted by this decision is currently unclear. However, this plan will not affect Walmart’s 4,600 pharmacies and over 3,000 vision centers.
In a press release, Walmart stated, “This is a challenging decision – like others in the industry, the challenging reimbursement environment and rising operational costs have made our health center business unsustainable at this time.”
This statement highlights the significant challenges businesses face in trying to transform and improve the healthcare system in the United States – a costly, complex, and deeply ingrained system involving doctors, insurance companies, drug manufacturers, and other stakeholders, with an annual expenditure exceeding $4 trillion.
Following the dissolution of the joint healthcare venture between JPMorgan Chase, Berkshire Hathaway, and Amazon in 2021, the closure of Walmart Health Centers marks the latest setback for major corporations venturing into the healthcare sector.
Walmart opened its first Walmart Health Clinic in Georgia in 2019, followed by several more clinics next to Walmart supercenters. Customers shopping at Walmart could receive medical and dental care at these health centers, in addition to services like flu tests, deep teeth cleaning, x-rays, and stitches.
The healthcare services at these centers were offered at affordable prices, such as $30 for adult check-ups, $45 for a 45-minute consultation, and adult teeth cleaning as low as $25.
The company has not disclosed specific closure dates for each center. However, sources informed CNBC that the health centers will be closing within the next 45 to 90 days.
According to sources, Walmart has stated that its clinics will continue to see scheduled patients until the closures. The company will also assist patients in finding quality healthcare providers within their insurance networks to ensure they can continue receiving care.
Walmart’s labor costs have been further impacted by the shortage of healthcare workers in the United States. Just a month ago, Walmart had plans to open 22 new stores this year and double the size of its clinic network by 2025.