Walmart decided to shut down all 51 of its healthcare clinics, as well as its virtual care services, according to an announcement made by the retail giant on Tuesday morning.

"We determined there is not a sustainable business model for us to continue," Walmart stated.

Walmart Closes All Health Centers in US

The company stated that it would implement the knowledge gained from the project, which started in 2019, in its 4,600 pharmacies as well as 3,000 vision care centers across stores in the United States.

Walmart Health has listed Arkansas, Florida, Georgia, Illinois, Missouri, and Texas as the states where in-person clinics are offered. This means that there are actually six states, instead of the previously announced five.

There are concerns about the potential impact of the move on patients in rural areas, who may face challenges in accessing affordable healthcare, according to The Independent.

Walmart has not provided a specific date for the closure of each center. The decision represents a significant shift from the retailer's earlier intentions to grow its health clinics. 

In a recent update, Walmart Health shared that they have encountered some challenges that have resulted in the delay of clinic openings in certain regions.  As a result, the opening of the new clinic in Houston, Texas has also been pushed back until early 2025.

READ NEXT: Report: China Damages Philippine Vessel in Disputed South China Sea Shoal

Walmart Pushes Back on Its Plans

Last year, the retail giant announced its plan to significantly expand its presence by the end of 2024.  As part of this plan, the company aimed to open 75 new locations by the end of the year. 

Nevertheless, due to constraints in construction resources, the company has decided to delay the construction of six health centers in the Phoenix region and four in Oklahoma City. According to a spokesperson, these projects will now commence at the start of next year.

However, Walmart remains on schedule to open the planned 75 locations by early 2025. The move comes as other retailers face challenges with their primary care businesses.

Meanwhile, Walgreens is reducing the size of its primary care clinic chain VillageMD. The drugstore chain is currently closing down 160 VillageMD locations.

VillageMD has already closed 140 locations and has either exited or informed patients that it is leaving Florida, Indiana, Chicago, Boston, Rhode Island, and Las Vegas. 

According to Fierce Healthcare, Walgreens experienced a significant loss in the second quarter, primarily due to a significant write-down of nearly $6 billion in the value of its investment in VillageMD.

READ MORE: Microsoft Urges to Invest $1.7 Billion to Develop AI, Cloud Infrastructure in Indonesia