Walmart is closing all 51 of its health centers and discontinuing its virtual care program due to a lack of profitability. Despite efforts by retailers like Walmart, BestBuy, and Amazon to make healthcare more convenient and affordable, the challenging reimbursement environment and escalating operating costs have made the care business unsustainable. Walmart’s decision reverses its previous plans to expand its health clinics. Existing patients will continue to be served, but the closure dates for the health centers have yet to be specified.
I considered this for the Big Ideas section and intentionally broke it out. What’s going on in healthcare that Walmart, BestBuy, and Amazon are struggling to build viable businesses in?
From a technology perspective, there might still be an opportunity to innovate in healthcare delivery through technology, particularly in telehealth and digital health monitoring tools, which can leverage their tech infrastructure and consumer reach without the high overhead of physical clinics.
That said, we care because it raises some questions about this market. I don’t claim to have the answers—sometimes, highlighting a problem is the value.