How to Incorporate Healthcare Services into Retail

On the “here comes health care” panel at ICSC RECon 2019, moderator Larry Kilduff, development and investment sales at JLL, talked about the changing retail environment and how to place healthcare in the retail environment.

“Here comes health care” panel at ICSC RECon 2019.

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LAS VEGAS—On the “here comes health care” panel at ICSC RECon 2019, panelists talked about how consumers want greater service and support from their healthcare provider and with that comes the convenience of adding providers in shopping centers. According to a recent retail report from JLL, for example, shopping centers have realized that healthcare services fit many of today’s retail center goals by bringing in patients and employees who will frequent its other stores and restaurants.

According to JLL’s Healthcare group, there has been a 47% growth in healthcare retail clinics in the past three years and the number of retail locations could double by 2022.

Panelist Yaromir Steiner, founder and CEO of Steiner + Associates Inc., who builds shopping centers, talked about the connecting between shopping centers and well-being. He mentioned that his centers try bringing in wellness programs like yoga and play areas and include social charity events as well to add that component of wellness into his centers. For Steiner, there are two types of synergies between health and retail. The question of whether he has space he can offer that makes sense and whether or not it matches the objectives of both parties. “Does it create a business opportunity? And are we using our real estate as a way of connecting with healthcare?”

When Terry Wood, SVP of real estate at Kaiser Permanente, looks at site selection, it is really based on where Kaiser members are and what they need. “We work with our delivery service strategy folks. In the past, we haven’t considered retail much, but it is clear to meet the needs of members that retail needs to come into play. It needs to be in the right location and needs to satisfy our need.”

Attractive aspects in a retail site, Wood continued, is around parking, location, brand etc. One challenge, though, has been the pharmacy aspect in particular due to other tenants in the surrounding area.

Dana Garcia, VP of corporate real estate at Highmark, says that Highmark is focused on adding value based care and in order to get that value to the member, her company has push the care out of the neighborhoods and combined a standard retail site selection model. “We can look through public health data and look at demographic profile and we enter the process with a higher confidence level that we are putting the facility closer to those that need to use it.

The JLL retail report also pointed out that owners and landlords should incorporate healthcare uses because it isn’t only beneficial to the shopper, but physician and hospital groups often have high credit ratings that will add stability to the overall center.

They pointed to Walgreens Healthcare Clinics, as an example, which as more than 400 locations across the country, spanning 31 markets. “The clinics offer convenient cost-effective prevention and wellness services. Walgreens maintains the second highest number of retail health clinics in the US,” the report says.

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