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Walmart is closing Walmart Health and Walmart Health Virtual Care, saying the business model was neither profitable nor sustainable.
Walmart Health centers opened in 2019.
“Through our experience managing Walmart Health and Walmart Health Virtual Care facilities, we determined that there is no sustainable business model for us to continue,” the company said in a statement. “The decision to close all 51 health centers in five states and close the virtual care offering was not easy.”
WHY THIS MATTERS
Walmart said the challenging reimbursement environment and rising operating costs created a lack of profitability.
He doesn’t have a specific date yet on when each center will close, but he would share that information “as soon as decisions are made.”
Its priority, Walmart said, was to “ensure that affected people and communities are treated with the utmost respect, compassion and support during the transition. Today and in the days ahead, we will focus on the continuity of care for patients and providing to affected associates with respect and assistance as we begin the process of closing health centers.”
The clinics will continue to serve patients while they are open.
“Through their respective employers, these suppliers will receive payments for 90 days, after which eligible suppliers will receive transition payments,” Walmart said.
All associates are eligible to transfer to any other Walmart or Sam’s Club location. They will be paid for 90 days, unless they transfer to another location during that time or leave the company, Walmart said. After 90 days, if they do not transfer or leave, eligible associates will receive severance benefits.
“We understand that this change impacts lives: the patients who receive care, the associates and providers who provide care, and the communities who support us along the way,” Walmart said.
THE BIGGEST TREND
Going forward, Walmart said it would take what it learned to provide health and wellness services nationwide through its nearly 4,600 pharmacies and more than 3,000 vision centers. Both have been in operation for 40 years.
“In recent years, the importance of pharmacies has continued to grow and we have expanded the clinical capabilities of the services we provide,” Walmart said. “We continue to offer vaccines and have grown to provide testing and treatment services, access to medications and specialty pharmacy care, as well as other essential services such as medication therapy management and a variety of health screenings. With more than 4,000 of our stores “In areas of medical provider shortages, our pharmacies are often the gateway to health care.”
Walmart said it plans to launch more services such as the Walmart Healthcare Research Institute and health programs to join its fresh food and over-the-counter offerings.
Among the country’s largest grocery stores, Walmart plans to introduce a premium food line called Bettergoods this year to compete with Trader Joe’s and Whole Foods, according to The Wall Street Journal.
However, stock prices fell last week for Walmart and Kroger after Amazon introduced a low-cost grocery delivery program, according to Seeking Alpha. Amazon is expanding its fresh food business through a home delivery subscription benefit in the United States for its Prime members and customers who use an EBT (electronic benefit transfer) card. Last Tuesday he outlined the $9.99 monthly plan, according to the report. Walmart stock prices fell 1.55% as of this morning.
Email the writer: SMorse@himss.org