Walmart is closing its telehealth service
Walmart Health Centers and Walmart Health Virtual Care, which launched as Covid-19 emerged, are now threatened with closure after a short five-year run.
In a press release from the retail giant, Walmart announced the termination of these services, citing the unsustainability of Walmart Health’s business model.
Despite the company’s efforts over the past five years to “make meaningful impact on patients,” all 51 health centers in five states and its virtual care offerings have now been taken off the market.
Walmart shutters Health company
According to Walmart, pressure from a challenging reimbursement environment and rising operating costs ultimately led to the demise of the Health division, which was still in its infancy.
Walmart has not set any closing dates for its 51 health centers, but promises to share more information soon.
Its 4,600 pharmacies and 3,000 vision centers will continue to operate, with Walmart promising that lessons learned from its short time in the broader healthcare industry will transfer to those companies.
The shocking news underlines the complexity and costs associated with expanding into the healthcare sector, especially for companies that previously operated in other sectors. Competition has also added pressure in recent years, with companies like Amazon and BestBuy expanding, acquiring smaller companies and forming new partnerships.
As part of its commitment to its employees, Walmart has confirmed that affected staff will either transfer to another Walmart or Sam’s Club location or receive 90 days’ pay and severance benefits.
The company released the following statement: “We are deeply grateful to these associates and caregivers for their caring service to patients in our communities and to the patients who entrusted us with their care.”