As Walmart closes clinics, a buyer emerges for its telehealth business

Walmart is selling its virtual healthcare business to Dusta fast-growing healthcare technology provider, for an undisclosed amount.

Walmart, which announced two months ago that it would close its 51 Walmart Health centers and its telehealth operations, said Fabric would acquire MeMD from Walmart. MeMD was acquired by Walmart in 2021 and renamed Walmart Health virtual care.

“MeMD is a leading provider of virtual behavioral, emergency and primary care benefits to 30,000 corporate, institutional and healthcare partners and 5 million members,” the companies said Friday in announcing the acquisition. “This acquisition advances Fabric’s employer strategy and marks an important milestone in the team’s mission to enable borderless, high-quality care for consumers across the country.”

The financial terms of the acquisition were not disclosed. The deal is expected to close in mid-July, the companies said.

Fabric said its “artificial intelligence-powered intelligence, seamless travel automation and a robust network of behavioral healthcare and medical providers” position the company for success as a virtual platform and clinical network for medical providers, health insurers and employers. Fabric customers include Luminis Health, OSF HealthCare, Highmark Health and Intermountain Health.

“We are pleased that in its next chapter within Fabric, MeMD will continue to deliver excellent care to virtual-first patients across the country Brian Setzer, Executive Vice President Chairman, Walmart Health & Wellness. “I expect MeMD will see continued growth and success under Fabric’s leadership.”

In turn, Fabric executives said they will use their “asynchronous technology to improve efficiencies within MeMD’s offering, lowering healthcare costs for members nationwide.”

Aniq Rahman, Founder and CEO of Fabricsaid the acquisition “is aligned with our strategic vision to transform healthcare through innovative technology and exceptional patient care.”