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Walmart is winding down its Walmart Health initiative, the company announced April 30—noting that all 51 of its healthcare clinics and virtual care services will close.
The retail giant has operated healthcare clinics since 2019. The clinics are located next to Walmart stores and offer primary care, dental, and behavioral health services along with other treatments. Walmart announced in March that it would open 22 new clinics in Texas and Missouri by the end of this year, Healthcare Brew previously reported.
“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,” according to the statement. “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.”
Walmart doesn’t yet have a date for when the clinics will close, but executives said they’ll “share as soon as decisions are made.” Providers will continue treating patients while the clinics remain open, according to the company.
It’s unclear how many jobs the closures will affect. Annie Patterson, a Walmart spokesperson, told Healthcare Brew the company is “still determining the exact number based on business needs.”
The company said it will continue to pay all affected employees for 90 days and that all workers are eligible to transfer to other positions in Walmart or Sam’s Club. After 90 days, employees will also be eligible for severance benefits.
“Our priority will be ensuring the people and communities who are impacted are treated with the utmost respect, compassion and support throughout the transition,” according to the company.
Walmart will still operate its roughly 4,600 pharmacies and more than 3,000 vision centers, according to the company. Its Testing and Treatment services—which began in August 2023 and allows pharmacists to test for Covid-19, the flu, and strep, and then prescribe treatment—will also remain intact, per the company.