Even Walmart thinks American healthcare is too expensive

Walmart isn’t making enough money from its new health centers, so it has decided to close its doors. The retail giant announced today that it will close all 51 health centers it has opened in five states since 2019. Walmart is also getting rid of its virtual care program after acquiring telehealth provider MeMD in 2021.

“We have determined that there is no sustainable business model for us to continue,” Walmart said in a statement. announcement today.

Retail giants like Walmart, BestBuy and Amazon each tried to get their share of the $3.6 billion Americans spend on health care every year. But while big retailers thought they could make a profit by making healthcare more convenient and accessible, the reality has been much more complicated.

“This is a difficult decision and, like others, the challenging reimbursement environment and rising operating costs create a lack of profitability that makes the care business unsustainable for us at this time,” Walmart said today. It’s a turnaround from last year when Walmart said this planned to double its number of health clinics and expand to two new states in 2024.

Walmart did not release specific dates for when each Walmart Health Center would close its doors, but said it would continue serving existing patients as long as they remained open. The company’s 4,600 pharmacies and approximately 3,000 vision centers will not be affected.