Walmart will close 51 health centers, including in Illinois – NBC Chicago

Walmart is closing its health centers and virtual care services, including one in Illinois, the U.S. retailer said Tuesday.

The company said that after managing the clinics it launched in 2019 and expanding its telehealth program, it concluded that “there is no sustainable business model to continue.”

Walmart had 51 health centers in five states, with the goal of helping people save money on their health care needs. Illinois was one of those states, with a clinic in Chicago at 1715 N. Kilpatrick Ave.

“This is a difficult decision, and like others, the challenging reimbursement environment and escalating operating costs are creating a lack of profitability, making the healthcare industry unsustainable for us at this time,” the company said in a statement.

A spokeswoman said reimbursement was proving a challenge ‘across all types of insurance’.

The planned closure of the Walmart Health centers comes after the company announced in March 2023 that it planned to add more than two dozen health centers to some of its stores this year. At the time, the company said it wanted to open 28 centers by 2024, mainly in Dallas and Houston. It also planned to expand into the Phoenix and Kansas City, Missouri areas.

Walmart is one of many retailers looking to build a presence in medical clinics and make healthcare more accessible. But some have had a hard time.

Walgreens spent more than $5 billion to acquire a majority stake in VillageMD a few years ago 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 close another 20 to increase profitability. The announcement came after Walgreens recorded a $5.8 billion after-tax impairment charge for VillageMD in the most recent quarter as it adjusted the value of the asset.

Although the United States faces a shortage of primary care physicians, building a network of primary care clinics can be a challenge even for established companies, according to healthcare researchers and analysts.

Many people who already have a doctor may be hesitant to leave, and some may not want to receive care in a store or retail setting. Clinics may also have to spend a lot of money treating and improving the health of new patients who have not visited a doctor.

Walmart does not yet have specific dates for when its health centers will close, but said it will share that information as soon as it becomes available. The company said employees who worked at the health centers are eligible for transfer to another Walmart or Sam’s Club location.

Walmart still has nearly 4,600 pharmacies and more than 3,000 vision centers in the US.