From CNBC: 2024-04-30 09:50:31

Walmart is closing all of its in-store health-care clinics and its telehealth provider. The company plans to shut down 51 clinic locations across five states in the next 45 to 90 days due to a broken business model and labor costs from a shortage of health-care workers.

Despite plans to double its clinic footprint, Walmart cited a challenging reimbursement environment and escalating costs as reasons for clinic closures. This move is another example of the difficulty in disrupting and improving the costly American health care system, which Walmart had aimed to make more affordable and accessible.

Walmart initially aimed to bring down health-care costs by offering low-priced services like annual check-ups for $30 and adult teeth cleanings for as little as $25 at its clinics. The company’s ambitious healthcare plans faced challenges with executive turnover, pandemic-related staffing issues, and increasing competition from CVS Health, Walgreens Boots Alliance, and Amazon.

Walmart will now focus on its traditional health services such as pharmacies and vision centers, returning to its core offerings after the failed Walmart Health initiative. The company will continue to see patients with scheduled appointments until clinic closures and help patients find alternative providers within their insurance networks for ongoing care.

As Walmart exits the health-care space, other retail giants like Walgreens and Amazon have also faced challenges with their primary-care clinics and health-care divisions, highlighting the complexities of expanding into the medical field. Walgreens has closed several VillageMD clinics to boost profitability, while Amazon’s clinic operator, One Medical, has expanded to over 125 locations nationwide.

Walmart previously made strategic moves in the health-care sector, including acquiring a chronic condition management platform called CareZone in 2020. Despite these efforts, the company’s exit from clinics and telehealth services reflects the difficulties of disrupting and transforming the American healthcare system.



Read more at CNBC: Walmart to shutter health centers, virtual care service