Why Walmart's return to telehealth features a marketplace model

Walmart has reentered the virtual care market with the launch of Better Care Services, a digital marketplace connecting consumers to a curated network of third-party telehealth providers. This initiative follows the 2024 closure of Walmart’s previous telehealth venture and physical health centers, signaling a strategic shift toward a partnership-based model. By integrating virtual care with its existing pharmacy and grocery infrastructure, Walmart aims to simplify the healthcare experience while avoiding the operational complexities of managing its own clinical workforce.

In January 2026, Walmart launched Better Care Services, a one-stop digital destination designed to provide customers with access to urgent care, behavioral health, and chronic disease management. Unlike its previous attempt through the acquisition of MeMD, which concentrated services within a single provider, the new platform utilizes a marketplace model featuring third-party partners such as Doctor on Demand, Wheel Virtual Clinic, and BetterHelp. The platform also integrates LillyDirect, Eli Lilly’s digital tool for medication delivery and chronic care, allowing Walmart to facilitate a full health journey from initial guidance to post-diagnosis needs like pharmacy pickup and delivery.

The move comes nearly two years after Walmart shuttered its previous telehealth services and closed 51 physical health centers across five states in 2024. Leslie Fletcher, Walmart’s vice president of growth and partnerships for Health & Wellness, noted that the marketplace approach addresses customer frustrations with a fragmented healthcare landscape and a desire for more affordable choices. By moving away from an in-person footprint, Walmart reduces operational complexity while leveraging its strengths as a retailer. Madelyn Knowles of Rock Health Advisory highlighted that this strategy allows Walmart to test a more scalable, integrated care ecosystem that aligns with its grocery and pharmacy services.

Walmart’s pivot mirrors similar strategies adopted by other retail and tech giants, most notably Amazon, which transitioned to a virtual clinic model after closing its original Amazon Care service. This trend suggests that as virtual care for low-acuity conditions becomes commoditized, non-traditional healthcare players are increasingly opting to partner with established providers rather than building clinical infrastructure from the ground up. This model allows retailers to maintain a stake in the virtual care sector while providing existing telehealth companies with a broader customer base. For Walmart, the integration of nutrition insights and delivery options positions the company to support a comprehensive wellness journey beyond a single virtual interaction.