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Executive Summary

Q1 HWS Labor Market Pulse® Index

LMPI Composite Index (historical)

April 2010

HWS is pleased to announce the release of Q1 results for the HWS Labor Market Pulse® Index (LMPI). The HWS LMPI is a leading indicator of local health care labor market demand as it is derived from announced expansion and contraction plans, among other data. The Index measures where near-term demand for health care workers is strongest based on a number of tracking variables including temporary health workforce shortages and surpluses, facility and bed closures, announced layoffs and expansions, and local economic trends.

2010 First Quarter LMPI Highlights

• The near-term demand for health care workers grew the fastest in the San Francisco Bay, Seattle, Tampa and Philadelphia metropolitan areas.

• Much of the growth was fueled by newly announced expansion plans and/or large-scale hiring announcements at organizations including Genentech in South San Francisco, Swedish Hospital Group in Seattle, and Jefferson Health System in Philadelphia.

• Of the 30 major markets tracked by the HWS Labor Market Pulse Index® (LMPI), the slowest areas for the quarter included the New York metro/Northern New Jersey, Sacramento, and St. Louis metropolitan areas.

• The LMPI composite index, a representative basket of the 30 largest markets, posted an 8% drop in the first quarter of 2010 from the fourth quarter of 2009, after a nearly 20% increase the previous quarter.

• For the fourth quarter ended 12/31/09, 11 markets of the 30 tracked by the LMPI showed signs of accelerated expansion (vs. 21 in the prior quarter).

2010 First Quarter LMPI Market Highlights

Atlanta-Sandy Springs-Marietta, GA
After three strong quarters and a number of positive workforce expansion announcements, the demand for health care workers in the Atlanta metropolitan area fell off slightly during Q1 of 2010. Of note were 8 nursing layoffs at Grady Memorial Hospital, which are now among the 700 positions eliminated at the hospital since 2008.

Baltimore-Towson, MD
The demand for health care workers in the Baltimore metropolitan area remained steady during the 1st quarter of 2010. Of particular note during the quarter, Maryland General Hospital unveiled its $57M new 77,000-square-foot facility and renovation in February, and Anne Arundel Med Center asked for the state’s permission to add another 30 beds to its ongoing hospital tower project.

Boston-Cambridge-Quincy, MA-NH
The growth in near-term demand for health care workers in the Boston metropolitan area remained steady for Q1 2010. Of note during the quarter, Childrens Hospital won approval to extend eight floors of its main building by a combined 80,000 square feet. This expansion will increase the number of beds by approximately 36.

Charlotte-Gastonia-Concord, NC-SC
After a strong fourth quarter of 2009, the demand for health care workers in the Charlotte metropolitan area dropped notably during the first quarter of 2010. That said, the number of workers required to meet announced expansion plans will likely continue to exceed the number of announced positions eliminated or deferred.

Chicago-Naperville-Joliet, IL
The near-term demand for health care workers in the Chicago metropolitan area held steady during Q1 for the third consecutive quarter, despite an announcement by the University of Illinois at Chicago Medical Center that it was shelving its plans for an overhaul of the UIC campus.

Cleveland-Elyria-Mentor, OH
The near-term demand for health care workers in the Cleveland metropolitan area slipped notably during Q1 when compared to Q4 of 2009, but remained stronger than much of the rest of the country. Of note during the quarter, Summa Health System announced plans to build two new full-service emergency departments and expand three existing emergency departments, the VA announced financing to consolidate its Brecksville campus into the Wade Park campus and then renovate and expand that campus, and the Cleveland Clinic outlined plans to spend an annual “all-time high” of $848 million on capital investments in 2010.

Dallas-Fort Worth-Arlington, TX
The demand for health care workers in the Dallas-Fort Worth-Arlington metropolitan area cooled in the 1st quarter of 2010, but the market remains strong and the number of workers required to meet announced expansion plans remains inadequate. Of note during the quarter, Methodist McKinney Hospital opened for business with six fully-equipped operating rooms, comprehensive diagnostic imaging including CT and MRI services, and 15 private patient rooms. Texas Christian University also announced that it would be partnering with Texas Health Resources this fall on a clinical nurse leader (CNL) program.

Denver-Aurora, CO
The near-term demand for health care workers in the Denver metropolitan area improved slightly during the 1st quarter of 2010 and the number of workers required to meet announced expansion plans will likely exceed the number of announced positions eliminated or deferred. Of note, Centura announced that will soon unveil plans for a $26 million full-service hospital in Castle Rock and Denver Health purchased four acres of land in Denver’s Montbello neighborhood on which it will build a new clinic.

Detroit-Warren-Livonia, MI
The Detroit health care labor market continued to improve during the first quarter of 2010, behind several notable announcements. Earlier in March, Detroit Medical Center was acquired by Nashville’s Vanguard Health Systems in a deal that wil bring at least $800 million in investment to the city over five years with $500 million in new facilities. In other news, Michigan Urgent Care Centers recently opened a new center in Grosse Point Woods, and Henry Ford Cottage Hospital in Grosse Pointe Farms announced that it would close its inpatient medical, surgical, rehab and psych units and convert into a large multi-specialty outpatient center in April. Under the plan, the hospital will recruit another 30 physicians and add more than a dozen outpatient services over the next two years.

Houston-Baytown-Sugar Land, TX
The near-term demand for health care workers in the Houston-Baytown-Sugarland metropolitan area weakened during the 1st quarter of 2010 but the demand for health care workers in the area remains positive and the number of workers required to meet announced expansion plans will likely exceed the number of announced positions eliminated or deferred. Of particular note during the quarter, Spring Branch Medical Center announced plans to lay off 720 employees as part of its decision to cease inpatient operations on May 1. In other news, Harris County Hospital District announced that it will open a standalone Martin Luther King Health Center in southeast Houston in a few months and San José Clinic began serving uninsured patients in a new Midtown location.

Kansas City, MO-IL
The near-term demand for health care workers in the Kansas City metropolitan area held steady during Q1. Of note, Nueterra Healthcare is set to open a new hospital that will employ between 90 and 100 by the end of its first year. The hospital is a joint venture between Dallas-area physicians, Methodist Health System and Nueterra.

Las Vegas-Paradise, NV
The near-term demand for health care workers in the Las Vegas metropolitan area continued to improve during the 1st quarter of 2010. Of particular note during the quarter, University Medical Center announced plans for a new 13,000-square-foot outpatient oncology clinic that will open in the fall, after suspending outpatient cancer treatment in November due to budget cuts.

Los Angeles-Long Beach-Santa Ana, CA
The near-term demand for health care workers in the Los Angeles metropolitan area held steady during the 1st quarter of 2010. The demand for health care workers in the Los Angeles metropolitan area remains positive and the number of workers required to meet announced expansion plans will likely exceed the number of announced positions eliminated or deferred. Of note during the quarter, St. Vincent closed its heart transplant program, broadening the fallout from a scandal that forced the hospital to stop performing liver transplants last year.

Miami-Fort Lauderdale-Miami Beach, FL
The near-term demand for health care workers in South Florida during the first quarter dropped notably from the prior quarter. Jackson Health System announced layoffs of 548, significantly lower than its initial estimate of nearly 4,500 earlier but still significant. On a positive note, Baptist Health South Florida plans to open three outpatient centers in Coral Gables and South Miami this year that will include 25 employees for urgent care and diagnostics services. In addition, Baptist plans to open a new urgent care center with 12 to 15 employees.

Minneapolis-St. Paul-Bloomington, MN-WI
The near-demand for health care workers in the Twin Cities metropolitan area held steady during Q1 2010. Of note, it was announced that Emergency Physicians plans to open a standalone clinic that can treat roughly 80 percent of typical emergency cases and will be staffed by 20-25 nurses, Physician Assistants and Laboratory Technicians.

New York-Northern NJ-Long Island, NY
The near-term demand for health care workers in the New York metropolitan area dropped considerably during the first quarter. Of particular note, it was announced that New York City’s public hospitals will be forced to cut 3,900 jobs over the next two years, a tenth of its workforce, if state budget cuts go through. In addition, St. Vincent’s Hospital Manhattan began to lay off 300 in a last ditch effort to survive and Christ Hospital in Jersey City announced plans to lay off 60.

Orlando-Kissimmee, FL
After five consecutive strong quarters, the Orlando health care labor market weakened slightly during the first quarter of 2010 despite a number of positive announcements. However, the number of workers required to meet announced expansion plans in Orlando remains inadequate. Notably during the quarter, Orlando Health announced that it could begin work this year on a $250 million expansion and renovation of Orlando Regional Medical Center, that would add 80-100 new positions. This is one of the first detailed projects to be unveiled as part of the system’s $750 million, five-year capital plan. Also of note, Adventist Health System’s Florida division announced that it is developing three outpatient facilities in Winter Park in partnership with Lillibridge, and Cord:Use Cord Blood Bank announced that it will be hiring 31 at its new lab opening in Maitland.

Philadelphia-Camden-Wilmington, PA, NJ, DE, MD
The near-term demand for health care workers in the Philadelphia metropolitan area continued to strengthen during the first quarter of 2010 and the number of workers required to meet announced expansion plans will likely exceed the number of announced positions eliminated or deferred. Of particular note during the quarter, Thomas Jefferson University announced that it is getting ready to start a $60 million construction project that includes a new 11-story building that will house both clinical and academic offices. Doylestown Hospital also unveiled its expanded emergency department that nearly quintuples its former size. On a negative note, Abington Memorial announced that it was examining strategies for increasing patient volumes and decreasing costs that may result in layoffs, and Girard Medical Center announced that it would be laying off 100 in April.

Phoenix-Mesa-Scottsdale, AZ
The near-term demand for health care workers in the Phoenix metropolitan area continued to strengthen during the first quarter of 2010 and the number of workers required to meet announced expansion plans will likely exceed the number of announced positions eliminated or deferred. Of note during the quarter, construction began on the new 80-bed, 104,000-square-foot Arizona State Forensic Hospital, to be completed in September 2011. It was also announced that Chandler Regional Medical Center will begin on the first of two major expansions this year that will add more than 200 jobs to the hospital’s staff.

Pittsburgh, PA
The near-term demand for health care workers in the Pittsburgh metropolitan area slowed notably during the first quarter of 2010. Of particular note, the West Penn Allegheny Health System announced layoffs in January of 213 full-time workers, coming from all six hospitals and corporate offices. On a positive note, Westmoreland Hospital began a renovation and expansion of its ED that will add eight exam rooms among other items.

Portland-Vancouver-Beaverton, OR
The near-term demand for health care workers in the Portland metropolitan area held relatively steady during Q1 2010 with no notable workforce-related news for the second straight quarter.

Riverside-San Bernardino-Ontario, CA
The demand for health care workers in the Riverside-San Bernardino metropolitan area dropped notably during Q1 2010 after big Q4. Of note during the quarter, It was announced that an expansion designed to shorten long waits at a Murrieta hospital’s emergency room remains shuttered as hospital leaders work with state inspectors to fix health and safety issues. Also of note, Valley Health System held informational meetings and notified employees or their unions of potential layoffs with the pending sale of the district’s assets to Physicians for Healthy Hospitals as part of its announced bankruptcy and debt reorganization plan.

Sacramento-Arden-Arcade-Roseville, CA
After outperforming much of the rest of the country last quarter, the near-term demand for health care workers in the Sacramento area was significantly impacted by the announcement of 185 jobs lost at Fremont-Rideout Health Group. Also of note during the quarter, Crestwood Behavioral announced that it had received approval to open 12 acute-care psychiatric beds at its Carmichael facility.

San Diego-Carlsbad-San Marcos, CA
The near-term demand for health care workers in the San Diego metropolitan area improved notably during the first quarter of 2010. Of particular note, Scripps Mercy broke ground on a new building that will house its emergency and trauma departments and nearly double the size of its current facility.

San Francisco-Oakland-Fremont, CA
The San Francisco Bay Area health care labor market continued to strengthen during Q1, and the near term demand for health care workers in the area improved more than any other metro in the country. Of particular note was Genentech’s announcement that it is trying to fill 600 new job openings across all business areas, including 480 in the Bay Area. Also of note during the quarter, St. Mary’s broke ground on a new $22.75 million cancer center, and Sequoia Hospital provided more detail on its new 104-bed, 148,000-square-foot addition to its current campus in Redwood City. In addition, work began on a $22 million expansion at San Ramon Regional Medical Center, which will move and expand the emergency department from nine beds to 17 and expand the clinical. Finally, ValleyCare Health System announced the opening of a 24-bed, $10 million new wing at its ValleyCare Medical Center in Pleasanton.

San Jose-Sunnyvale-Santa Clara, CA
The demand for health care workers in the San Jose metropolitan area remained steady from the prior quarter. Of note, the DePaul Urgent Care Center in Morgan Hill opened its doors on February 1, and will provide an array of non-emergency-room services, including treatment of minor ailments and injuries to the city’s 38,000 residents.

Seattle-Bellevue-Everett, WA
The near term demand for health care workers in the Seattle metropolitan area improved considerably during the 1st quarter of 2010. Of particular note, the Swedish Hospital Group announced that it will create some 1,500 new jobs and replace hundreds of employees who will transfer or retire in the next five years. Also of note during the quarter, Seattle Childrens and the Laurelhurst Community Club reached an agreement over the hospital’s proposed expansion plans.

St. Louis, MO-IL
After several solid quarters, the near-term demand for health care workers in the St. Louis metropolitan area dropped during the first quarter of 2010. Of note during the quarter, the Sisters of Mercy System announced plans to lay of 226 and eliminate 288 unfilled jobs as part of a system-wide restructuring. Also of note, it was announced that 300 people who work at Forest Park Hospital have been notified of termination this spring.

Tampa-St. Petersburg-Clearwater, FL
The near-term demand for health care workers in the Tampa metropolitan area continued to strengthen during the first quarter of 2010 and the number of workers required to meet announced expansion plans will likely exceed the number of announced positions eliminated or deferred. Of note during the quarter, Morton Plant North Bay Hospital expanded its New Port Richey campus, adding a three-story patient tower and a physician office building. The expansion is part of a $49 million project that doubled the size of the campus and increased the number of patient beds by 25 percent to 154. Also of note, Adventist Health System and University Community Health announced the signing of a non-binding letter of intent to explore a possible merger of the two systems. The merger potentially could be completed this summer, pending completion of due diligence and any regulatory review.

Washington-Arlington-Alexandria, DC-VA-MD-WV
The near-term demand for health care workers in the DC metro area slowed during Q1 but remained comparable relative to the rest of the country. Of note during the quarter, Georgetown University Hospital announced some of its expansion plans, and city leaders announced that they were looking for a new owner for the 184-bed United Medical Center, formerly known as Greater Southeast Community Hospital.

   

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