Walmart Health is closing all 51 of its health centers across five states and shutting down its Walmart Health Virtual Care services.
The decision to close is due the "challenging reimbursement environment" and rising operating costs, which have resulted in a lack of profitability, according to an April 30 Walmart news release.
Walmart's almost 4,600 pharmacies and more than 3,000 vision centers will not be affected by the closure. It will continue to offer services such as testing and treatment, specialty pharmacy medication and care, medication therapy and health screenings.
The Bentonville, Ark.-based retailer recently brought more than 200 vision centers under its ownership, the release said.
Walmart Health, which launched in 2019, most recently partnered with Orlando Health and Centene's Ambetter from Sunshine Health, the payer's ACA subsidiary in Florida, in November.
It also partnered with UnitedHealth Group on value-based older adult care and a co-branded health plan in September 2022.
News of the Walmart Health closure comes after UnitedHealth Group's Optum Virtual Care shared plans to close as part of Optum's continued review of services and capabilities. Walgreens-owned VillageMD also shared plans to exit Nevada, where it has six Village Medical clinics, in early April after "careful consideration and analysis."
Employees affected by the closure will be eligible to transfer to any other Sam's Club or Walmart location and will receive 90 days' pay unless they are transferred to another company location or exit the company. Severance benefits will also be available for eligible employees following the 90-day initial pay period.
"Our provider partners will continue to serve existing patients while clinics are open," the release said. "Through their respective employers, these providers will be paid for 90 days, after which eligible providers will receive transition payments."
Orlando Health had no comment on the closure.
Becker's has reached out to Walmart and Centene for comment and will update this story if more information becomes available.
Editor's note: This story has been updated as of May 1 at 7:25 a.m. CT.