Walmart to close all health centers due to lack of profitability

Walmart has announced that it will be closing all 51 health centers in five states due to a lack of profitability. The company says that the challenging reimbursement environment and escalating operating costs make the care business unsustainable at this time.

The company released a statement saying, "We understand that this change will affect lives -- the patients who receive care, the associates and providers who deliver care, and the communities who supported us along the way."

Walmart has yet to announce specific dates for the closures. However, the company is focused on continuity of care for patients and providing impacted associates with assistance during the transition.

The company is providing the following provisions for associates and providers:

1. All associates are eligible to transfer to any other Walmart or Sam's Club location.
2. All associates will be paid for 90 days unless they transfer to another location during that time or leave the company.
3. After 90 days, if they do not transfer or leave, eligible associates will receive severance benefits.
4. Walmart provider partners will continue to serve existing patients while clinics are open. Through their respective employers, these providers will be paid for 90 days, after which eligible providers will receive transition payments.

Walmart also stated that it will continue to provide other health and wellness services across the country, such as the nearly 4000 retail pharmacies and more than 3000 vision centers it currently operates.

Initially, Walmart's health initiative competed with Amazon's to provide care to patients in Arkansas, Florida, Georgia, Illinois, and Texas. However, Walmart has abandoned this effort in favor of greater profitability.