CVS Health will close 25 MinuteClinic sites in the Los Angeles area by Feb. 25, the pharmacy chain giant said Wednesday.
A CVS spokesperson did not share the exact locations of the closures or how many employees would be affected. Some workers will be moved to other roles in the company, and others will be eligible for severance benefits, the spokesperson said.
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CVS acquired MinuteClinic in 2006. The walk-in clinics are staffed by physician assistants and nurse practitioners. They offer primary and preventative care, including treatment for minor wounds, vaccines, screenings, chronic condition management and behavioral health resources. More than 1,100 MinuteClinics operate across 35 states, mostly located in CVS stores.
The CVS spokesperson said the closures would support future growth.
"As part of our normal practice, we continually evaluate Minute Clinic’s footprint to ensure it meets the demands of our patients and consumers and aligns with our healthcare delivery strategy," the spokesperson said.
Last August, CVS announced an $800 million restructuring to cut costs, a move that included more than 5,000 layoffs and hundreds of store closures. The company in January also announced plans to shutter some of its pharmacies in Target stores, though it did not specify how many.
CVS plans to shut down its clinical trials division by the end of this year.
The pharmacy chain, dogged by expenses from Medicare Advantage outpatient claims and lost revenue due to fewer COVID-19 cases, pushed for more profitability in 2023. It reported net income of $2.26 billion, or $1.75 per diluted share, in the third quarter of 2023, according to the most recent numbers. That's compared with a $3.41 billion loss in the third quarter of 2022.
CVS continues to pour resources into healthcare services. It acquired primary care provider Oak Street Health for $10.6 billion in May and plans to open 50 to 60 more sites in 2024.
CVS is one of several retailers eyeing more opportunities in healthcare services. Pharmacy rival Walgreens in 2021 took a majority stake in primary care provider VillageMD with a $5.2 billion investment, and is staging a turnaround for its U.S. healthcare services division. Walmart opened more than 15 clinics in Florida last year and is adding another 28 clinics in Texas, Arizona and Missouri. Kroger operates more than 225 The Little Clinic sites across nine states.
