In a commentary on the state of US healthcare, Walmart has announced it is shutting down Walmart Health because it “is not a sustainable business model.”
Walmart rolled out Walmart Health roughly five years ago. The company’s goal was to offer customers an affordable healthcare option. Unfortunately, the company is now closing all 51 health centers in the five states they were operating.
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. 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.
The company says it is committed to helping and supporting impacted individuals and communities throughout the transition.
Our priority will be ensuring the people and communities who are impacted are treated with the utmost respect, compassion and support throughout the transition. We do not yet have a specific date for when each center will close but will share as soon as decisions are made.
While we will no longer operate health centers, we will take what we learned as we provide trusted health and wellness services across the country through our nearly 4,600 Pharmacies and more than 3,000 Vision Centers.
Walmart’s experience serves as a major indictment of the US healthcare system. If a company with Walmart’s vast resources cannot mak a viable business out of providing affordable healthcare, it does not bode well for other companies that may have the same goals.