Walmart just announced that it is closing its healthcare and virtual clinics. According to its executives, this will be a “difficult decision.” In this way, Walmart Health and Walmart Health Virtual Care, two services that are highly accepted by their members, will say goodbye.
Yes, they were accepted, but the business model that the company intended did not result, in terms of economic results. There was no other option but to close and promote other company projects. Both services started just five years ago.
Walmart’s press release explains in great detail the announced closures of the 51 health centers in five states and the offer of virtual care.
“We understand that this change impacts lives: the patients who receive care, the associates and providers who provide care, and the communities who supported us along the way. This is a difficult decision and, like others, the challenging reimbursement environment and rising operating costs create a lack of profitability. This makes the healthcare business unsustainable for us at this time.”
Priority to affected communities
The company further explained that “the priority will be to ensure that affected people and communities are treated with the utmost respect and support during the transition. We do not yet have a specific date on when each center will close, but we will share it as soon as decisions are made.”
Walmart announced that it will soon focus on continuity of patient care. Additionally, it will provide assistance to affected associates as the process of closing healthcare facilities begins. This is, without a doubt, the company’s priority now.
“All associates will receive their payment for 90 days, unless they transfer to another location during that time or leave the company.” After 90 days, if they do not transfer or leave, eligible associates will receive severance benefits.
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