Walmart, Walgreens and Rite Aid have begun closing clinics nationwide. Here's why.
Walmart
Walmart Health is closing all 51 of its clinics and shutting down its virtual care services.
"This is a difficult decision, and like others, the challenging reimbursement environment and escalating operating costs create a lack of profitability that make the care business unsustainable for us at this time," the company said in an April 30 news release.
Walgreens
Walgreens' VillageMD has made plans to pull out of several markets in 2024. The company has exited Illinois, Indiana and Florida and has plans to leave the Nevada market as well.
VillageMD had six clinics in Illinois, 12 in Indiana and 40 in Florida. Its six Nevada clinics are slated to close by the end of 2024.
"We remain confident in our goal of achieving $1 billion in cost savings this year," Walgreens CEO Tim Wentworth said in a news release outlining the company's second-quarter financial results. "We are continuing to strategically review our portfolio over the next three months in an effort to ensure it drives growth and delivers value."
Rite Aid
In October, Rite Aid announced that it will close 154 stores in more than 10 states to save on rent costs. In April, bankruptcy court filings revealed that Rite Aid will shutter 53 more locations.
"In connection with the court-supervised process, we notified the court of certain underperforming stores we are closing to further reduce rent expense and strengthen overall financial performance," a company spokesperson told Becker's. "At this time, we have not made or confirmed any decisions on additional specific store closures as part of our financial restructuring process."