WMT

Walmart To Close 51 Health Clinics Across Five States In US

(RTTNews) - Recently, Walmart (WMT) announced its decision to close down its 51 health care centres across Arkansas, Florida, Georgia, Illinois and Texas, arguing that "there is not a sustainable business model for us to continue."

"The decision to close all 51 health centers across five states and shut down the virtual care offering was not easy," the company stated. "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."

The health clinics, started in 2019 nearby Walmart Supercenters, offered services such as lab and X-ray facilities, primary and emergency care, and dental work.

"Health care looks like a big opportunity," Walmart CEO Doug McMillion claimed during the launch of first clinic.

However, "challenging reimbursement environment and escalating operating costs" declined the profitability of the business over the time.

The U.S.-based retailer said that the impacted employees would be given an opportunity to shift to any other Walmart or Sam's Club store. If the employee doesn't choose to transfer or leave the company, then they will receive payment for 90 days.

After closing the clinics, Walmart said that it would prioritize pharmacies and vision centers.

"Over the past few years, the importance of Pharmacies has continued to grow, and we have expanded the clinical capabilities of the services we provide," the company added.

Walmart's pharmacies offer vaccination, testing facilities, and specialty medication and care.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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