Walmart will close all of its 51 health centers in 5 states due to rising costs

Walmart will close all of its health centers across the United States that for five years provided low-cost medical care to patients.

The retailer announced the plan on Tuesday to shutter its network of 51 health clinics, which are located in five states, along with its telehealth business. The impending closures signify that Walmart is scuttling its initial plans to expand the services wider, citing the escalating operation costs and “challenging reimbursement environment,” the company said in a press release.

“We determined there is not a sustainable business model for us to continue,” the company said in a statement. “We understand this change affects lives – the patients who receive care, the associates and providers who deliver care and the communities who supported us along the way.”

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Walmart health centers provided a range of services

Since Walmart first introduced its health centers in 2019, 51 of the clinics have opened across the U.S. in five states.

Located next to Walmart Supercenters, the health centers provide a range of services, including medical, dental and behavioral health care.

Walmart has not yet decided on a specific date for when each center will close, but the retailer indicated intentions to share those details as soon as decisions are made.

The company said it will now focus its health business on its nearly 4,600 pharmacies and more than 3,000 vision centers across the United States.

Walmart’s pharmacies have recently expanded to provide testing and treatment services, access to specialty medication, medication therapy management and a variety of health screenings. The company has also launched new features at its vision centers, including a virtual try-on capability using augmented reality.

Where are Walmart Health centers?

Here are the five states where health centers are located, along with how many there are in each state.

• Arkansas: 3 locations

• Florida: 23 locations

• Georgia: 17 locations

• Illinois: 1 location

• Texas: 7 locations

Employees may be eligible to transfer

It’s unclear how many jobs will be eliminated as a result of the health center closures.

Walmart did say that it’s providing eligible employees with the opportunity to transfer in other parts of its business, including Sam’s Club locations. Employees may also be eligible for severance benefits, the company said.

“The associates and providers have made an incredible difference for their patients and communities, and they are a priority,” Walmart said in a statement.

Eric Lagatta covers breaking and trending news for USA TODAY. Reach him at elagatta@gannett.com