Walmart sells telehealth platform
Walmart Inc. is scaling back in another area of its healthcare operation.
The discount giant has sold its MeMD telehealth platform to healthcare technology company Fabric for an undisclosed sum. Walmart acquired MeMD in May 2021 as it sought to keep pace with burgeoning telehealth offerings from chief rival Amazon.
MeMD provides virtual behavioral, urgent, and primary care benefits for 30,000 corporate, institutional, and health plan partners and 5 million members. The platform delivers care 24/7/365, and according to Fabric, it experienced “significant growth and expansion” under Walmart’s ownership.
The decision to sell off MeMD follows Walmart’s recent closure of its 51 Walmart Health clinics. Walmart launched Walmart Health in 2019. The centers were designed to allow patients to manage their health care in one location, with services that include dental, primary care, behavioral health, X-ray, labs and more. The clinics were located across five states: Arkansas, Florida, Georgia, Illinois and Texas.
At the time, Walmart said there was "not a sustainable business model" for it to continue operating the centers. When it initially purchased MeMD, Walmart said the telehealth platform would complement Walmart Health brick-and-mortar services.
However, Walmart is partnering with omnichannel pet care platform Pawp to introduce a new telehealth benefit to pet-owning members of the Walmart + paid subscription program later in 2024.
"The MeMD team built a leading virtual care offering, and we are excited to welcome them to Fabric," said Aniq Rahman, founder and CEO of Fabric. "This acquisition aligns with our strategic vision to transform healthcare delivery through innovative technology and exceptional patient care. The combination of our teams, technology, and clinicians strategically positions Fabric to quickly expand across payers, employers, and provider organizations."
Fabric said it will ensure a "smooth transition" for MeMD’s existing patients, partners, and clinicians as part of the acquisition and will also continue to serve Sam’s Club members as a telehealth solution. Walmart did not formally comment on the sale.
Headquartered in Bentonville, Ark., Walmart Inc. operates more than 10,500 stores and numerous e-commerce websites in 19 countries.