Walmart has been shopping around a possible sale of its already shuttered health centers with potential buyers, Fortune first reported, citing numerous individuals with knowledge of the situation.
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The retail giant has held talks with health insurance firms, such as Humana, the publication said. According to the unnamed sources, Walmart has said that it wants to win back the substantial funding it placed in the “unsustainable” health clinics. It remains unclear whether the discussions have continued, the magazine added.
In late April, Walmart said that it would be closing all 51 of health care clinics largely due to a “challenging reimbursement environment and escalating operating costs” that in turn created a lack of profitability. The month prior, Walmart said it planned to open 22 new locations in 2024.
In 2019, the retailer opened its first Walmart Health center in Dallas, Georgia. At the time, the company said it would provide customers key services, including primary care, labs, X-rays, as well as counseling, at a clear price regardless of a customers’ insurance status.
During the announcement in April, Walmart also said that it would be shutting down operations of Walmart Health Virtual Care unit. That decision was influenced by the sharp decline in virtual care visits, which once ballooned during the onslaught of the Covid-19 pandemic, when health providers were forced to use the option.
Nonetheless, Walmart continues to operate its 4,600 pharmacies, including its 3,000 vision centers. In early June, the retailer’s stock hit an all-time high after financial firm JPMorgan upgraded its rating, citing a “strong balance of defense and offense,” amid a tough consumer backdrop.