April 30 (Reuters) - Walmart ( WMT ) plans to close all

51 of its health centers across five states in the U.S. as well

as its telehealth operations, the company said on Tuesday,

citing lack of profitability in those businesses.

The big-box retailer said that reimbursement from

insurers and other payers has been challenging, which along with

escalating operating costs made the businesses unsustainable.

Walmart's ( WMT ) move comes at a time when the healthcare

sector has seen stiff competition, with players such as

Walgreens Boots Alliance, CVS Health Corp ( CVS ) and

even Amazon.com ( AMZN ) trying to get a share in the market.

These companies had expanded their presence especially

after the pandemic, as they hoped to get a boost from increased

public focus on healthcare, but losses have been mounting.

"We determined there is not a sustainable business model

for us to continue," Walmart ( WMT ) said in a blog post on Tuesday.

Walmart ( WMT ) launched its health centers in 2019, offering

primary care, dental care, behavioral health, labs and X-ray,

audiology and telehealth.

Last year, it had announced plans to expand its presence to

more than 75 locations by opening 28 new health centers in

Texas, Arizona and Missouri.

The company on Tuesday did not disclose a specific date for

the closure of each center. It said all its employees at these

centers would be eligible for a transfer to any other Walmart ( WMT ) or

Sam's Club locations.

Amazon ( AMZN ) in February said it would cut a few hundred jobs

across its healthcare units, including clinic operator One

Medical which it acquired for $3.5 billion last year, while

Walgreens in March recorded a $5.8 billion impairment charge on

its investment in clinic operator VillageMD.