• Health Tech

From Retail to Healthcare: How Shopping Malls Are Becoming the Future of Medical Facilities

February 24, 2023

• Shopping malls are being converted into healthcare facilities as consumer interest in retail spaces decreases during the COVID-19 pandemic.
• Healthcare systems benefit from the existing infrastructure of malls, saving them money on construction costs.
• Malls provide an opportune location for medical facilities, with ample square footage and centralized patient access.

As the COVID-19 pandemic has forced people to stay home and avoid public spaces, shopping malls worldwide have suffered a decline in consumer interest. In response, healthcare systems have quickly filled the vacant spaces left behind, creating a win-win situation for both industries.

According to a report by NJBiz on February 6, healthcare systems have been filling unused mall space at record numbers. Moody’s Analytics predicts millions of square feet of retail mall space will become available in the coming years, creating even more opportunities for healthcare systems to expand their reach. A national database run by Georgia Institute of Technology professor Ellen Dunham-Jones has already identified 32 malls that have been converted into healthcare facilities, with one-third of them transforming due to the pandemic.

Malls provide a perfect space for medical facilities, often offering a significant amount of square footage. This allows for more extensive medical practices, including outpatient surgery centers and urgent care clinics, to be located in a centralized area. Additionally, these facilities can increase foot traffic to the remaining retail stores within the mall, boosting sales. Malls are also typically located in densely populated areas, close to major highways, and easily accessible for patients. This convenience makes it easier for patients to receive medical care, particularly those who may not have access to healthcare facilities in their immediate area.

The existing infrastructure of malls also benefits healthcare systems. Malls have ample parking, access to bathrooms, plumbing, and centralized electricity and IT capabilities. Health systems can save money on construction costs by utilizing pre-existing infrastructure.

The trend of healthcare systems moving into malls has been strong for a while. In 2022 alone, four unique health systems announced plans to move into malls across the U.S. One such example is the JCPenney at Gallatin Valley Mall in Bozeman, Montana, which is currently under construction to be converted into a 45,000-square-foot SCL Health ASC. In April, the University of California San Diego Health opened an 11,000-square-foot GI and digestive clinic in a shopping mall. Similarly, New York and New Jersey health systems plan to convert Sears buildings into ASCs, while Essentia Health is building a 41,000-square-foot surgery center at Miller Hill Mall in Duluth, Minnesota.

In conclusion, the trend of healthcare systems moving into malls is a win-win situation for both industries. It allows healthcare systems to expand their reach while providing a convenient and centralized location for patients. The existing infrastructure of malls also benefits healthcare systems, saving them money on construction costs. As more retail space becomes available, healthcare systems will likely continue to fill these spaces, further expanding access to medical care for communities across the U.S