Yahoo Finance Walmart will close all of its 51 health centers in 5 states due to rising costs
Walmart will close all of its health centers across the United States that for five years provided low-cost medical care to patients.
The retailer announced plans Tuesday to shutter its network of 51 health clinics in five states, along with its telehealth business. The impending closures signify that Walmart is scuttling its initial plans to expand the services, citing escalating operation costs and "challenging reimbursement environment," the company said in a news release.
"We determined there is not a sustainable business model for us to continue," the company said in a statement. "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."
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Walmart health centers provided a range of services
Walmart first introduced its health centers in 2019. Located next to Walmart Supercenters, the health centers provide a range of services, including medical, dental and behavioral health care.
Walmart has not yet decided on a date for when each center will close, but the retailer indicated intentions to share those details as soon as decisions are made.
The company said it will now focus its health business on its nearly 4,600 pharmacies and more than 3,000 vision centers across the United States.
Walmart's pharmacies have recently expanded to provide testing and treatment services, access to specialty medication, medication therapy management and a variety of health screenings. The company also has launched new features at its vision centers, including a virtual try-on capability using augmented reality.
Where are Walmart Health centers?
Here are the five states in the Walmart health center network, and how many centers there are in each state:
Arkansas: 3 locations
Florida: 23 locations
Georgia: 17 locations
Illinois: 1 location
Texas: 7 locations
Walmart to close its health centers: See full list of locations
Employees may be eligible to transfer
It's unclear how many jobs will be eliminated as a result of the closures. Walmart did say it's allowing eligible employees to transfer to other parts of its business, including Sam's Club locations. Employees may also be eligible for severance benefits, the company said.
"The associates and providers have made an incredible difference for their patients and communities, and they are a priority," Walmart said in a statement.
Eric Lagatta covers breaking and trending news for USA TODAY. Reach him at elagatta@gannett.com
This article originally appeared on USA TODAY: Walmart Health closing all 51 health centers in 5 states
