Becker's Healthcare May 1, 2024
Giles Bruce

Health system leaders told Becker’s they’re not surprised by the failure of Walmart Health given the arduous economics of healthcare and the difficulty of providing primary care at scale.

Walmart said April 30 it would be closing its 51 Walmart Health Centers and virtual care offerings five years into its foray into healthcare. The company cited the “challenging reimbursement environment” and “escalating operating costs” that left its healthcare arm unprofitable.

“Walmart, like Walgreens and Amazon and others before them, are experiencing the reality that healthcare systems have had to contend with for years,” said David Sylvan, chief strategy and innovation officer of Cleveland-based University Hospitals. “A compressed reimbursement environment, operating and supply chain inflation, and of course, increased workforce costs,...

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