Walmart Will Close All Of Its Health Care Clinics

On Tuesday, Walmart, the biggest retailer in the United States, announced that it would shut down all 51 healthcare centers in six states and terminate its virtual healthcare services.

In the past several years, Walmart has significantly expanded its presence in the healthcare industry. The company has opened clinics adjacent to its superstores in several states, including Arkansas, Florida, Georgia, Illinois, Missouri, and Texas.

These clinics provide a wide range of medical services, such as basic and urgent care, laboratory testing, X-rays, behavioral health services, and dental treatments. Walmart was confident that it could utilize its extensive financial resources and network of stores to provide convenient and affordable services to people in rural and underserved regions where access to primary healthcare was limited.

Walmart Will Close All Of Its Health Care Clinics

However, this statement signifies a sudden change in Walmart’s approach, which could result in a lack of access to healthcare, especially for economically disadvantaged individuals without insurance who depend on these clinics. Additionally, Walmart announced its decision to discontinue virtual healthcare services.

One distinctive aspect was their emphasis on stores situated in underprivileged communities. Ateev Mehrotra, a professor of health care policy and medicine at Harvard Medical School who studies retail health clinics, expressed disappointment that Walmart was unable to succeed in providing care for individuals who have few options.

Walmart stated that its decision to discontinue its healthcare initiative was based on the lack of profitability due to the difficult reimbursement environment and increasing operating costs.

The organization stated that it has concluded that there is no viable and enduring business model for it to proceed with.

Mehrotra stated that Walmart’s closures indicate the difficulties faced by primary care professionals in the United States. The Association of American Medical Colleges predicts a potential deficit of up to 55,000 primary care physicians in the coming decade.

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Walmart Will Close All Of Its Health Care Clinics

“This experience underscores the financial challenges that primary care faces as a whole.” “It truly reflects the challenges that primary clinics are encountering,” he stated.

Walmart has announced its intention to maintain the operation of its 4,600 pharmacies and over 3,000 optical facilities nationwide.

Walmart established clinics to address the needs of its customers who lack health insurance and those who have insurance plans with substantial deductibles and out-of-pocket expenses.

In 2020, Walmart CEO Doug McMillion indicated that the healthcare care field appeared to be a significant prospect shortly after the initial clinics were established.

High expenses and limited availability of primary healthcare services remain ongoing obstacles, particularly in rural regions. Walmart selected certain locations based on their higher prevalence of chronic diseases and lower number of primary care providers compared to the average towns in the United States.

In 2020, Marcus Osborne, the former vice president of health and wellness transformation at Walmart, informed CNN that those who frequently visited the clinics had not received medical attention from a primary care physician for two to three years or dental care for five years.

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Walmart Will Close All Of Its Health Care Clinics

According to Robert Field, a professor of health administration and policy at Drexel University, Walmart encountered various difficulties with its health clinics, such as a scarcity of medical personnel.

According to him, the closures of Walmart demonstrate that success in the retail industry does not necessarily indicate success in the healthcare sector.

“Selling services is distinct from selling products such as toothpaste and breakfast cereal, and necessitates distinct expertise and management,” Field stated.

SOURCE – (CNN)