Walmart Inc (NYSE:WMT) said on Tuesday that it would close all of its healthcare clinics across the country. Walmart pharmacies and vision centers were unaffected.

The big box retailer will close 51 clinic locations and shut down the virtual care offerings.

The company said in a release that the plan will not affect its 4,600 pharmacies and more than 3,000 vision centers. 

“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,” Walmart said.

“Through our experience managing Walmart Health centers and Walmart Health Virtual Care, we determined there is not a sustainable business model for us to continue,” Walmart added.

CNBC noted, citing two people familiar with the matter, that the clinics will close over the next 45 to 90 days.

CNBC added that the shortage of healthcare workers in the U.S. has also increased the company’s labor costs.

The announcement comes just a month after Walmart said it planned to double the size of its clinic footprint by opening up 22 new locations this year and more in 2025. 

Patients with scheduled appointments will continue to be seen, and Walmart will make efforts to direct patients to providers in their insurance networks, CNBC reported.

Walmart opened its first Walmart Health clinic in 2019.

CNBC report added that Walmart’s customers, who were accustomed to shopping for groceries and household items, could also access healthcare services like doctor’s appointments, therapy sessions, flu tests, X-rays, and stitches at Walmart clinics. These services were affordable, with prices such as $30 for an annual check-up, $45 for counseling, and $25 for teeth cleaning. 

Walmart assured employees affected by store closures that they could transfer to other locations, with pay guaranteed for 90 days unless they secured a transfer or left the company.

Price Action: WMT shares are down 1.71% at $59.21 at the last check Tuesday.

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