The built environment of hospital buildings are generally not accepted to be pleasant. In the design of healthcare facility, it is quite important that its design, spatial arrangement and areal distribution must respond to curative needs of people so as the outcome emerge in the form of healing environment in the physical spaces.This kind of healing environment is quite adequately available in the developed countries of the global north. However; in developing countries of the global south like Pakistan, the healing environment in healthcare facilities is neither documented nor evident in any available published literature. Whereas, it needs to be well documented and analyzed. Thus, this study aims to identify the healing environment in two selected hospital buildings in Pakistan that is... ICP (Peshawar Institute of Cardiology) and FCP (FC Hospital Peshawar) by determining the percentage of wasted spaces within the building. The selected buildings are analyzed from the following aspects; circulation pattern in the hospital, accessibility, connectivity and barrier free movement within buildings, along with the walkability status of over stressed staff inside the hospital building while navigating, functionality of the schematic designs, the problem of the users concerning repetitiveness in their circulation pattern and the way to increase the efficiency of spaces, their spread and flow in the hospital building. In general, three key factors were investigated in this study, therefore, design determinents, areal distribution and adequate spatial organization. In this regard, total eight design determinants were investigated, i.e. entry, parking, waiting area, connectivity, visibility, walkability, accessibility, and way finding. Study approached the spatial simulation method therefore 3M analysis which is a Japanese model referred as Muda (waste), Muri (over burden), Mura (unevenness) based on the Kaizen theory for eliminating wasted spaces from Hospital buildings. Based on the findings and through the approached tools, the waste spaces within the hospital buildings were removed up to 40%.