What You Should Know:
– Retail giant Walmart is reportedly shopping around a potential sale of its recently closed health centers, according to a recent Fortune report citing unnamed sources.
– The news comes just a few months after Walmart announced the closure of all 51 of its health clinics in late April.
Financial Losses Prompt Sale
The report claims Walmart has held talks with health insurance companies, including Humana, with the goal of recouping some of the “substantial funding” invested in the “unsustainable” health clinics. However, it remains unclear whether these discussions are still ongoing.
From Expansion Plans to Abrupt Closure
Walmart’s foray into the healthcare market began in 2019 with the opening of its first Walmart Health center in Dallas, Georgia. The company initially aimed to provide customers with affordable primary care, lab services, X-rays, and even counseling, regardless of insurance status.
However, by April 2024, a challenging financial landscape forced a complete turnaround. Walmart cited a “challenging reimbursement environment and escalating operating costs” as reasons for closing all its health clinics. This decision coincided with the closure of Walmart Health Virtual Care, another victim of the post-pandemic decline in virtual healthcare visits.
Focus on Core Businesses
Despite the closure of its health ventures, Walmart remains committed to its core businesses. The company boasts a network of over 4,600 pharmacies, including 3,000 vision centers. In fact, Walmart’s stock recently hit an all-time high in June 2024, reflecting strong financial performance despite a challenging economic environment.
