Walmart sells telehealth platform MeMD

by Kim Souza ([email protected]) 0 views 

As part of reducing its healthcare assets, Walmart has sold its MeMD – a virtual health platform – for an undisclosed sum to Fabric, a health technology company. Terms of the deal were not disclosed, and the companies expect it to close by mid-July.

Walmart acquired MeMD in May 2021 as the retailer sought to reach more consumers with its affordable healthcare platform that included 51 Walmart clinics and expanded services for pharmacists. The MeMD platform was acquired by Walmart to complement its brick-and-mortar services. Walmart also did not disclose what it paid for MeMD in mid-2021.

Lack of profitability in the segment prompted the recent closure of the primary care clinics and the sale of MeMD. Walmart Chief Financial Officer John David Rainey recently said Walmart will continue to focus on health but through a different lens, such as promoting and selling healthy food options and expanding services through its pharmacy.

The MeMD platform provides virtual behavior, urgent and primary care benefits for 30,000 corporate, institutional and health plan partners along with 5 million members. Fabric said the platform has experienced “significant growth and expansion” under Walmart’s ownership.

“The MeMD team built a leading virtual care offering, and we are excited to welcome them to Fabric,” said Aniq Rahman, Fabric founder and CEO. “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.

“We are pleased MeMD will continue delivering excellent care to virtual-first patients across the country in its next chapter within Fabric,” said Brian Setzer, executive vice president of Walmart Health & Wellness. “I expect MeMD to see continued growth and success under Fabric’s leadership.”

Walmart also recently announced a partnership with an omnichannel pet care platform Pawn to introduce a new telehealth benefit to pet-owning members of the Walmart+ paid subscription program.