Walmart sells MeMD Virtual Care subsidiary to startup Fabric

Walmart Inc. (NYSE: WMT) sold its virtual care subsidiary MeMD to healthcare technology startup Fabric for an undisclosed amount. The acquisition builds on MeMD’s previous technology partnership with Fabric to streamline patient intake and documentation.

After five years of operation, Walmart announced in April 2024 that it would close 51 Walmart Health and Walmart Health Virtual Care locations.

Fabric said the acquisition will expand its solutions for employers and payers and advance the company’s mental health strategy.

MeMD, founded in 2010 and acquired by Walmart in 2021, provides on-demand medical and mental health services to millions of members nationwide.

In February 2024, Fabric announced a $60 million Series A investment led by General Catalyst with continued participation from Thrive Capital, GV (Google Ventures), Salesforce Ventures, Vast Ventures, Box Group, and Atento Capital. At the time, the company said the investment was “validation of our care enablement system that improves patient access while driving clinical and operational efficiencies from symptom onset through virtual and in-person treatment and post-visit engagement.”

The company said its enterprise clients include Luminis Health, OSF HealthCare, MUSC Health, Highmark and Intermountain Health.

“The MeMD team has built a leading virtual care offering, and we are excited to welcome them to Fabric,” said Aniq Rahman, founder and CEO of Fabric, in a statement. “This acquisition aligns with our strategic vision to transform healthcare delivery through innovative technologies and exceptional patient care. The combination of our teams, technologies, and physicians strategically positions Fabric to rapidly expand to payers, employers, and provider organizations.”