Walmart is shutting down its health centers and virtual care service after struggling to make them profitable. Despite launching the service with the goal of helping people save money on their healthcare needs, the company has now realized that there is not a sustainable business model for them to continue operating these services.

The retail giant had 51 health centers in five states, but they have decided to close all of them. The challenging reimbursement environment and escalating operating costs have made the care business unsustainable for them at this time. Walmart opened its first health center in 2019 and had plans to expand with more centers in different areas. However, those plans have been put on hold as the company focuses on other aspects of its business.

In March 2023, Walmart announced plans to add more than two dozen health centers to some of its stores, with the majority planned for Dallas and Houston. However, due to ongoing financial difficulties, the company has now decided to close its existing health centers and virtual care service. Employees working there will have the opportunity to transfer to other Walmart or Sam’s Club locations.

While Walmart is closing its health centers and virtual care service, it still operates almost 4,600 pharmacies and over 3,000 vision centers in the U.S. There is no specific date for the closure of the health centers yet, but Walmart will provide that information when available.