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What the Walmart Exit from Primary Care Means

May 30, 2024
The Health Care Blog
Summary
Retail giant Walmart has decided to exit its primary care clinic and virtual health businesses, citing underestimated costs and lower-than-expected volumes. Despite their extensive customer base and logistical prowess, Walmart found it challenging to make primary care profitable due to high revenue cycle overhead, tight labor markets, and the financial constraints of their customers. Their decision underscores the broader struggle within the corporate primary care sector, where even so-called "disrupters" face significant hurdles. This move highlights the complexities and high costs associated with transforming primary care in the U.S. healthcare system, suggesting that viable solutions may require substantial changes in how services are funded and reimbursed.
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