Walmart Health

Walmart launched Walmart Health in 2019 as a standalone health clinic next to one of its stores in Georgia, offering primary care, labs, X-rays, dental, counseling, audiology, and other services.²¹³¹⁷ Walmart announced on April 30, 2024, that it would close all 51 Walmart Health centers and its virtual care platform due to a lack of a sustainable business model, citing challenging reimbursement and escalating operating costs.^125671014 The closures were completed by June 28, 2024, and Walmart shifted its healthcare focus to its pharmacies and vision centers.²³⁴⁶

Timeline

Money raised

Walmart acquired MeMD in 2021 for an undisclosed amount.²⁶ Fabric acquired MeMD from Walmart in June 2024 for an undisclosed amount.⁴⁶

Investors named in the sources: Walmart Inc.^1235671014.

What happened

Walmart launched Walmart Health in 2019 as a standalone health clinic next to one of its stores in Georgia.²¹³¹⁷ The first Walmart Health center opened in Dallas, Georgia, offering low, transparent pricing on a range of health services.¹³¹⁷ Services included primary care, labs, X-rays, EKG scans, counseling, dental, optical, hearing, and community health education.²¹⁷ Walmart Health offered transparent pricing, such as $30 for a medical checkup, $25 for a teeth cleaning, and $1 per minute for mental health consultation.¹⁷ Walmart expanded its health clinics into several states, including Arkansas, Illinois, and Texas.²

In 2021, Walmart acquired MeMD, a mental and medical telehealth provider, to offer virtual care services.²⁶ Walmart Health continued its expansion in 2023 by adding 17 new health clinics in the Jacksonville, Tampa, and Orlando metropolitan areas.² Walmart announced plans to expand into Arizona and Missouri and open 28 new clinics by the end of 2024.² In January 2023, Walmart partnered with UnitedHealth Group to roll out a value-based care model at 15 Walmart Health locations.¹⁴ Walmart Health faced challenges including a shortage of healthcare workers, high labor and real estate costs, and administrative burdens from insurance companies.²⁶¹⁴

On April 30, 2024, Walmart announced the closure of all 51 Walmart Health centers and its virtual care platform.^125671014 Walmart executives stated that there was not a sustainable business model for Walmart Health due to challenging reimbursement and escalating operating costs.^25671014 Walmart CEO Doug McMillon said during an earnings call on May 16, 2024, that the company could no longer see a path to achieving an acceptable level of profitability.¹⁴ Clinics continued to see patients with scheduled appointments until they closed, and Walmart helped patients find providers in their insurance networks.² Walmart shifted its healthcare focus to its pharmacies and vision centers, which include 4,600 pharmacies and over 3,000 vision centers.²

Employees affected by the closures had the option to transfer to other Walmart or Sam's Club locations and received severance if laid off.⁶ Providers at Walmart Health locations continued serving patients during the transition period and received payments if they left after 90 days.⁶ Walmart's telehealth platform MeMD was acquired by health tech startup Fabric on June 28, 2024.⁴⁶ Fabric planned to maintain MeMD as an independent entity and continue offering telehealth services to Sam's Club members.⁶ Walmart Health's closure was part of a broader trend of retailers struggling with primary care, including Walgreens closing VillageMD clinics and Amazon cutting healthcare roles.²⁸

Experts noted that Walmart's closures may leave patients, particularly those with lower incomes or without insurance, with gaps in healthcare access.² Walmart Health had 23 locations in Florida, 17 in Georgia, seven in Texas, three in Arkansas, and one in Illinois.¹⁴ Walmart Health's behavioral health offerings included counseling for depression, anxiety, stress, grief, relationship issues, alcohol use, ADHD, and virtual psychiatrist visits.¹⁴ Walmart Health's price transparency may have made it difficult to negotiate higher reimbursement rates with payers.¹⁴ Walmart Health's focus on rural and underserved communities may have contributed to its financial challenges due to lower reimbursement rates.¹⁴

Walmart Health's closure was announced after the company had previously planned to expand to 75+ health centers by the end of 2024.⁷ Walmart Health had acquired telehealth platform MeMD and announced partnerships with Optum and Ambetter Health before the closure.⁷ Walmart Health's closure was described as shocking by industry observers, given the company's recent expansion plans.⁷ Walmart Health's closure was attributed to unsustainable operational costs and unprofitability.⁶ Walmart Health's virtual care unit was to be dissolved over the next year after the announcement.⁶

Walmart Health's telehealth platform MeMD was acquired by Fabric, which planned to integrate its technology and team.⁶ Walmart Health's closure was due to a lack of profitability, as stated by company executives.^25671014 Walmart Health's telehealth platform MeMD was acquired by Fabric on June 28, 2024.⁴⁶ Walmart Health's closure was attributed to high operating costs and reimbursement challenges.^25671014 Walmart Health's closure was announced after the company had invested significantly in expanding its clinics.²⁷

Walmart Health's telehealth platform MeMD was acquired by Fabric, which planned to continue offering services to Sam's Club members.⁶

Lessons, as others put them

"Through our experience managing Walmart Health centers and Walmart Health Virtual Care, we determined there is not a sustainable business model for us to continue."Walmart executives^25671014

Sources

1. Walmart Health shutting down, along with virtual care ..., fiercehealthcare.com, Apr 30, 20
2. Walmart Health is closing down. Here's what you need to know., advisory.com, May 1, 202
3. Walmart Ends Its Primary Care Effort, Will Shut All Clinics Friday - KFF Health News, KFF Health News, Jun 27, 20
4. Health tech startup Fabric acquires Walmart's telehealth ..., healthcaredive.com, Jun 28, 20
5. Digital health pioneer shutting down in bankruptcy-like closure - Baker City Herald, Baker City Herald, 2024-06-17
6. Health Tech Startup Fabric Acquires Walmart’s Telehealth Platform; Retail Giant Exits from Healthcare, Rupa Health, Jul 05, 20
7. The End of Walmart Health, and Retail Health's Demise? - Hospitalogy, Hospitalogy, 2024-05-02
8. Senior Living Lessons from Walmart Health Closure, VillageMD Woes, Other Market Upheavals, Senior Housing News, 2024-05-02
10. Exclusive: Walmart shut down its healthcare clinics after losses reached nearly a quarter of a billion dollars, Endpoints News, Jun 6, 202
13. Exhibit, sec.gov
14. Why the Very Things That Made Walmart Health's Behavioral Efforts Unique Ultimately Led to Its Downfall, Behavioral Health Business, 2024-05-29
17. Former Apple CEO: Walmart's health-care services will cause 'a consumer revolution', CNBC, 2020-02-26

How this case file was put together

Every statement on this page carries a numbered note, and every note points to a court record, a regulatory filing or a named publication in the list of sources. Each statement was checked against the text of the sources it cites before it was published: a figure, a date or a name the cited source does not contain was cut rather than kept. Allegations are shown as allegations, with their status at the time of the source (filed, charged, convicted, pleaded, settled, dismissed or pending). Quoted lessons are the words of the person or publication named with them, copied from the cited source; nothing here is our own opinion of why the company failed.

If a fact on this page is wrong, use "Report an error" below and attach the record that shows the correct fact. Every report is reviewed by a person before anything changes, and a corrected page says when it was last corrected.

All case files2024health