Walmart shuts down its health clinics, leaves Fort Worth communities ‘disappointed’

When Raquel Portillo learned that Walmart was planning to build a medical clinic in Fort Worth, she was excited.

Portillo, co-founder of Mental Health Advocacy Partners, believed the clinic would be a great primary care resource for the residents served through her organization.

But Portillo was upset to learn that Wal-Mart would do so. shut down It has virtual care options and 51 health centers in five states, including three scheduled to open in Fort Worth this year.

“I’m disappointed,” she said. “Walmart is located in an area that can serve the typical resident. It would have been great for people to find a provider right down the street.”

Walmart recently announced that its healthcare division is not a sustainable business model for the company.

Walmart said in a statement on April 30, “This is a difficult decision, and like our other decisions, the difficult reimbursement environment and increasing operating costs have resulted in a lack of profitability, making our long-term care business unsustainable at this time.” “I’m making it a reality.”

Walmart’s original vision for medical clinics

First of all, Walmart took on the challenge of healthcare In 2019, they opened a clinic in Dallas, Georgia, with the goal of becoming “a leader in promoting better health outcomes for people in their communities, on their schedules and on their budgets.”

From there, Walmart opened more than 50 clinics within supercenters in Arkansas, Florida, Georgia, Illinois, and Missouri. A total of 18 more clinics are being built this year at Walmart stores in Dallas, Fort Worth and Houston.

The 5,400-square-foot clinic offered several medical services, including primary care, dental, behavioral health, lab, and telehealth. All clinics were operated by independent physician and dental clinics.

The Fort Worth Walmart’s first clinic, located at 2900 Renaissance Drive, was scheduled for a grand opening on April 24, but was postponed and then canceled. He has two other clinics under construction in Fort Worth. One is located at 7451 McCart Avenue and the other is at 8401 Anderson Boulevard.

Dr. Jeff Beason, interim executive vice president for the health system at the University of North Texas Health Science Center, was saddened but not surprised by the Walmart clinic closure. Several other primary care providers are also struggling to create sustainable community-based care models, he said.

“The problem we have in the United States as a primary care provider is the reimbursement model,” he says. “The amount paid by insurance is often less than what it costs to provide that care. If you only provide primary care and no other services, such as testing, you have a loss-making business model. This will be the break-even point.”

As Walmart planned to serve more of Fort Worth’s low-income communities, the company would rely heavily on: medicareThis is being compensated by the government at historically low reimbursement rates, Beeson said.

Medicare paid out just 82 cents for every dollar hospitals spent treating Medicare patients in 2022, resulting in a $99.2 billion Medicare shortfall that year. according to Data collected by the American Hospital Association.

What’s next?

All Walmart Health Clinics will be closed for the next 45 to 60 days. Hundreds of jobs will be affected, but specific numbers were not disclosed. according to Dallas Morning News. Walmart’s in-house pharmacies and vision centers are not affected by the closure.

Affected Walmart employees will be eligible to transfer to other Walmart or Sam’s Club stores. Employees will be paid for 90 days starting April 30 unless they transfer to another location or quit their jobs during that time. According to a Walmart press release, eligible employees will receive severance benefits if they do not transfer or resign after 90 days.

All independent health care providers will receive 90 days of pay through their respective employers. Eligible providers will also receive a transition payment.

“Our priority is to ensure affected people and communities are treated with the utmost respect, compassion and support during this transition period,” Walmart said in a statement.

Celia Brannon, co-founder of Mental Health Advocacy Partners, said her main concern continues to be residents living in the 76105 ZIP code, which is just days away from opening its first Walmart clinic. The community already has limited access to resources, she said.

According to one study, this area has one of the lowest life expectancies in Tarrant County. 2022 Community Health Assessment From the Tarrant County Public Health Department.

“This Walmart is located at 76105, where it is very difficult to find resources to accommodate poor people,” she said. “Walmart was trying to fill a really big gap that needed to be addressed. Who’s going to take care of these people?”

David Moreno is a health reporter for The Fort Worth Report. His position is supported by a grant from Texas Health Resources. Please contact [email protected] or @davidmreports With X.

At The Fort Worth Report, news decisions are made independent of board members and financial supporters.Read more about our editorial independence policy here.

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