Demand For Urgent Care Centers
Urgent care centers are bringing fiscal opportunities for investors nationwide. As a result of limited hospital access during the pandemic and consumers’ increased prioritization of health and wellness, urgent care centers are in high demand. According to the Urgent Care Association, urgent care site patient volume has increased by 60 percent since 2019. To match the market’s interest, developers are rapidly reworking outdated retail spaces into urgent care facilities, expanding the market nationally.
It is anticipated that the urgent care market will reach $48 billion in revenue in 2023, a 21% increase from 2019, according to IBISWorld.
Urgent Care Centers Can Boost Consumer Convenience
Retail landlords are welcoming urgent care centers as tenants because of their stability and high foot-traffic. According to the Urgent Care Association (UCA), patient volume at urgent care centers increased by 60 percent since 2019 and averages 60-80 in-person visits each day. Healthcare assets also typically have higher credit ratings and lower vacancy rates as opposed to other retailers and prove to be recession-resistant since people will always need to visit the doctor. Urgent care centers also typically have higher credit ratings than retailers and lower vacancy rates. The trend of developing urgent care facilities in shopping centers with attractive demographics, large quantity of visitors, and high visibility can be seen throughout the country. The best-performing facilities are in small shopping centers, free-standing buildings on high-traffic roads, and in pad sites nearby big box stores that serve as a retail draw. An example of this is Virtua Express Urgent Care facilities located in shopping centers throughout the New Jersey. One property in particular was converted from a grocer-chain nearby a Walmart-anchored shopping center, and now sees heavy foot traffic as a result of its location. Additionally, a survey done by ICSC found that seven out of ten adults visit healthcare providers in shopping centers.
Tend, a boutique dental chain, has been opening offices in retail space in urban areas, where rents can be 20 percent below pre pandemic levels.
Why Consumers Prefer Urgent Care Centers:
Urgent care facilities provide convenience and easy access for patients to treat non-emergency conditions. On average, a trip to an urgent center facility cost between $100 to $150 out of pocket without insurance. Plus, offering later hours than a primary doctor makes it easier for visitors to get an appointment or walk-in visit.
Approximately 80% of the U.S. lives within a 10-minute drive of an urgent care facility.
Where the Demand is Coming From
The shortage of healthcare facilities and workers is a tremendous problem striking the country. The quantity of healthcare workers has not returned to pre-pandemic levels, and the ripple effect is seen in hospitals and doctor’s offices alike. In some states, like Idaho and Oregon, certain healthcare facilities have been forced to close down on weekends due to the lack of staff. The pandemic sickening workers has caused many to quit and many too fearful to return. The U.S. will face a shortage of 124,000 physicians by 2034, including 48,000 primary care doctors, according to the Association of American Medical Colleges. The need for healthcare nationwide is pushing the urgent care market to expand, which can be seen by the 9 percent increase of number of urgent care centers in 2022.
Top Urgent Care Centers
- City MD- 150+ facilities
- American Family Care- 250+ facilities
- Concentra- 500+ facilities
- Fast Med-200 facilities