San Francisco-Oakland-Fremont, CA
San Francisco-Oakland-Fremont, CA
Q1 2010 - Market Summary
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.
On a comparative basis, the Bay Area health care labor market outperformed much of the rest of the country despite RN vacancy rates hitting a new low during the quarter. Its Q1 LMPI score of 129.0, up 173% from the prior quarter, compared to the national composite of 49.9.
Q1 Workforce Announcements
Genentech still looks to hire 600 people. March 26, 2010
The South San Francisco-based biotech powerhouse is trying to fill 600 job openings across all business areas - from research, development and corporate functions to manufacturing and commercial - including about 480 in the Bay Area
http://sanfrancisco.bizjournals.com/sanfrancisco/stories/2010/...
Children’s Hospital Oakland to restructure, cut jobs, “reorganize” outpatient services. March 25, 2010
Children’s Hospital & Research Center Oakland said it must restructure its outpatient services, develop new business opportunities, and negotiate higher private insurance and government reimbursements to cover patient care costs. Children’s Oakland said its financial woes are the result of the recession, low Medicare, Medi-Cal and private insurance reimbursement rates, its own employees’ increasing health care costs “and a lack of public hospitals with pediatric inpatient beds.”
http://sanfrancisco.bizjournals.com/sanfrancisco/stories/2010/...
St. Mary’s Medical Center to start $22.75M cancer center project. March 23, 2010
St. Mary’s Medical Center, part of the Catholic Healthcare West system, said it will celebrate the groundbreaking of a $22.75 million Cancer Center. Officials expect it to treat about 400 infusion and 200 radiation therapy patients annually.
http://sanfrancisco.bizjournals.com/sanfrancisco/stories/2010/03/...
Hunt Construction wins big Sequoia Hospital rebuild contract. March 2, 2010
Catholic Healthcare West has awarded Hunt Construction Group the contract for its $240 million Sequoia Hospital rebuild, which will add a 104-bed, 148,000-square-foot pavilion to the current campus in Redwood City. CHW said the enhanced campus will have 167 beds and a number of appealing features, including larger, private rooms; new consult rooms; a “healing environment,” featuring soothing interior colors; and a number of IT advances.
http://sanfrancisco.bizjournals.com/sanfrancisco/stories/2010/...
Walnut Creek developing into a health-care hub. February 12, 2010
Long home to John Muir Medical Center and Kaiser Permanente’s Walnut Creek Medical Center, Walnut Creek’s health care footprint is growing. John Muir Health is investing a projected $621 million to expand and upgrade its Walnut Creek hospital, and Children’s Hospital & Research Center Oakland last year opened an outpatient surgery/diagnostic imaging and specialty care. The Muir project will add about 85 beds to the current 330, create 230 new private rooms, and expand ER, neonatal intensive care and surgical capacity. The new Children’s Hospital outpost, which opened in mid-August, is staffed by 20 doctors, 11 nurses and other medical staff, and three other employees.
http://sanfrancisco.bizjournals.com/sanfrancisco/stories/2010/...
San Ramon Regional Medical Center in midst of $22M buildout. January 29, 2010
San Ramon Regional Medical Center is in the midst of an expansion surge. Work began on the project’s biggest element, moving and expanding the emergency room from nine beds to 17 and expanding the clinical lab, with ground-breaking in mid-December. Also, ValleyCare Health System just opened a 24-bed, $10 million new wing at its ValleyCare Medical Center in Pleasanton
http://sanfrancisco.bizjournals.com/sanfrancisco/stories/2010/...
Hospitals and Health Systems
Source: US News & World Report
Education Program Expansion and Closures
California Institute nabs $500K grant from Moore Foundation for RN training. March 22, 2010
The Berkeley-based California Institute for Nursing & Health Care has nabbed a $500,000 grant from the Gordon and Betty Moore Foundation, to help tackle the difficulties facing new nursing school graduates who can’t find jobs due to the troubled local economy.
http://sanfrancisco.bizjournals.com/sanfrancisco/stories/2010/…
Education Programs
Source: The Integrated Postsecondary Education Data System
Health of the Local Economy
Declining home prices may cause healthcare employees to seek additional hours from current employers, delay retirement plans and be more willing to relocate for a better job opportunities. Below is the Case-Shiller Home Price Index for the overall San Francisco-Oakland-Fremont, CA market.
Source: http://www2.standardandpoors.com accessed 3/31/2010
Lower home ownership rates reduce the impact of home price fluctuations and increase the willingness of healthcare employees to relocate for better job opportunities. Below are home ownership rates for the overall San Francisco-Oakland-Fremont, CA market.
Source: www.census.gov accessed 3/18/2010
The recent rising unemployment rates create new demands for health services. Higher unemployment shifts the mix away from higher margin procedures to more primary care in the emergency room and critical care for conditions that should have been treated early at a primary care physician. In general, rising unemployment also reduces turnover and engagement of employed workers, while low unemployment tends to increase intra market churn. Below are unemployment rates for the overall San Francisco-Oakland-Fremont, CA market.
Source: www.bls.gov accessed 3/18/2010
Additional Factors Influencing HWS Labor Market PulseTM Index
- U.S. Census Bureau Population 4,274,531, #13 largest market
- U.S. Census Bureau Population #159 oldest market
- U.S. Census Bureau Population Growth 3.7%, #249 fastest growing market
- Executive Summary
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