Walmart has announced the closure of all 23 of its Florida-based Walmart Health centers, part of a nationwide shutdown of 51 locations due to a financially unsustainable business model caused by high operational costs and “challenging reimbursement rates.”
Walmart announced it will close all 23 of its Walmart Health centers in Florida as part of a broader shutdown of 51 locations nationwide.
The decision, which also includes the cessation of Walmart Health Virtual Care, comes after the company deemed the operation financially unsustainable amidst rising costs and challenging reimbursement rates.
“The decision to close all 51 health centers across five states and shut down the virtual care offering was not easy. 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 company said in a statement. “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.”
Launched in 2019, Walmart Health aimed to expand access to low-cost medical services, but struggled to maintain a viable business model. The closure comes less than two years after the company opened an additional 16 health centers in Florida, spanning the metro areas of Jacksonville, Orlando, and Tampa.
The facilities, conjoined to preexisting Walmart SuperCenters, provided a range of healthcare services including primary care, labs, X-ray and EKG, behavioral health, dental, hearing, select specialty services, and community health.
Walmart Health also held a 10-year corporate partnership with UnitedHealth Group to provide preventive care to senior citizens and virtual healthcare services for all age groups, which NBC News reported was terminated upon the closure announcement.