Walmart Health: From a Major Healthcare Player to Shuttering.

2019: Walmart Health Launched

Affordable Community Healthcare:

-Since 2019, Walmart Health has been providing affordable healthcare services through community health centers in multiple states of US, staffed with various medical professionals.

-Patients can access a range of services, including primary and urgent care, dental, behavioral health, and more, emphasizing transparency and accessibility.

Positive Patient Feedback and Success:

-Walmart Health has garnered high patient satisfaction with a Net Promoter Score of 80, indicating strong community response and quality care delivery.

-Notably, a significant percentage of returning patients and positive reviews highlight the success of Walmart Health's service model.

Adaptation to Healthcare Trends:

-In response to the increasing demand for telehealth, Walmart Health acquired MeMD in 2021, enhancing access to virtual medical and behavioral health services.

-Moreover, Walmart's partnership with UnitedHealth Group for Medicare Advantage plans and CareSource for social determinants of health showcases its commitment to evolving healthcare needs.

Future Expansion Plans:

-Walmart Health aims to nearly double its centers by 2024, expanding into Missouri and Arizona and enhancing patient experience with modern equipment and technology.

--With a focus on patient feedback and community needs, Walmart Health is committed to delivering integrated and quality care while maintaining excellent patient service.

Founding Principles and Customer-Centric Approach:

-Reflecting on Sam Walton's philosophy, Walmart Health emphasizes the importance of earning loyalty and providing excellent service with each visit.

-Through a personalized and community-focused approach, Walmart Health aims to continue improving and adapting to meet the diverse needs of its customers.

Innovative Healthcare Solutions:

-Walmart Health stands out in the industry due to its strong community relationships, ability to address unmet medical needs, and exceptional care delivery by qualified providers.

-With a comprehensive range of services, virtual healthcare options, and expansion plans, Walmart Health remains dedicated to accessibility and quality care.

Insurance and Pricing Accessibility:

-While accepting major insurance, Walmart Health prioritizes affordable care by offering reasonable prices for uninsured or out-of-network patients.

-The company's commitment to transparent pricing ensures accessibility and inclusivity in healthcare services for all community members.

Community Impact and Healthcare Evolution:

-Through strategic partnerships and community initiatives like in-store health workers, Walmart Health addresses social determinants of health and promotes holistic care approaches.

-By adapting to industry trends and expanding physical and virtual healthcare services, Walmart Health continues to positively impact community health and healthcare access.

2024: Walmart Health Closing Down

Closes Healthcare Clinics & Virtual Care Services:

-Walmart is shutting down all 51 of its healthcare clinics and virtual care services due to a lack of profitability.

-The challenging reimbursement environment and escalating operating costs create a lack of profitability that makes the care business unsustainable for Walmart at this time.

Impact on Expansion Plans:

-Walmart's decision to close clinics contrasts with its previous plan to expand to 75 locations by early 2025.

-Challenges, including construction resources, have led to delays in clinic openings in Phoenix and Oklahoma City.

Retail healthcare struggles:

-Walgreens is also scaling back its primary care clinic chain, VillageMD, with the closure of 160 locations.

-VillageMD has already exited 140 locations and has exited or already notified patients that it is exiting Florida, Indiana, Chicago, Boston, Rhode Island and Las Vegas

-Walgreens reported a significant loss related to its investment in VillageMD, highlighting challenges in the primary care sector.

-Walgreens reported a steep quarterly loss in fiscal 2024 second quarter earnings, reflecting a nearly $6 billion write-down in the value of its investment in VillageMD.

-The retail pharmacy operator invested $1 billion in VillageMD in 2020 and then sunk $5.2 billion into the primary care company in 2021, making it the majority owner with a 63% stake.

Walmart's Future Healthcare Services:

-Despite closing health centers, Walmart will continue health and wellness services through its pharmacies and vision centers.

-The company aims to innovate and expand services to enhance the customer experience and support healthcare accessibility.

Community Health Centers Post-Unwinding Challenges:

-Community health centers face difficulties with Medicaid re-enrollment.

-Players in this segment after unwinding, are still grappling to overcome obstacles.

Walmart will reportedly cease operating health centers, but it will still offer wellness and health services across the nation through its more than 3,000 vision centers and nearly 4,600 pharmacies. The company touted that it has expanded the clinical capabilities of its pharmacies with the presence of its stores in medical provider shortage areas, often serving as the “front door of healthcare.