The Arkansas-based company said that after managing the clinics it launched in 2019 and expanding its telehealth program, it concluded"there is not a sustainable business model for us to continue."Walmart announced that it is closing its health centers and virtual care service, as the retail giant has struggled to find success with the offerings.
Walmart had 51 health centers in five states, with the goal of helping people save money on their health care needs."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," the company said in a statement.
Walgreens spent more than $5 billion a few years ago to acquire a majority stake in VillageMD and planned to add hundreds of clinics to its stores. In late March, the company announced the closure of 140 of its VillageMD primary care clinics and plans to shutter 20 more to boost profitability. The announcement came after Walgreens recorded a $5.8 billion, after-tax impairment charge for VillageMD in its most recent quarter as it adjusted the asset's value.
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