Labor Market Pulse » Executive Summary

Executive Summary

Q1 HWS Labor Market Pulse® Index

LMPI Composite Index (historical)

April 2011

HWS is pleased to announce the release of Q1 2011 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.

2011 First Quarter LMPI Highlights

• After a relatively sluggish year that saw much fluctuation, the strength of the national health care labor market showed improvement across a number of major metropolitan areas in the first quarter as measured by the HWS Labor Market Pulse Index® (LMPI), a leading indicator of near term demand.

• For the first quarter of 2011, the near-term demand for health care workers was strongest in the Baltimore, Charlotte and Miami metropolitan areas.

• Of the 30 major markets tracked by the HWS Labor Market Pulse Index® (LMPI), the weakest areas for the quarter included the Las Vegas, Cleveland and San Diego metropolitan areas.

• The LMPI composite index, a representative basket of the 30 largest markets, posted a 4% increase in the first quarter of 2011 from the 4th quarter of 2010, after a 3% decline the prior quarter and a 13% drop from Q3 to Q4.

• For the 4th quarter ended 3/31/11, 18 markets of the 30 tracked by the LMPI showed signs of accelerated expansion (vs. 14 in the prior quarter).

2011 Select Market First Quarter Highlights

Atlanta
The near term demand for health care workers in the Atlanta metropolitan area continued to slip during the first quarter of 2011. Of note, Atlanta’s Grady Hospital announced it would lay of 100 employees and close two community health centers. However, on a positive note, Emory University Hospital Midtown is seeking approval to expand its ICU capacity later this year.

Baltimore
The near term demand for health care workers in the Baltimore metro area improved more than any other major metro in Q1. Of note, were 4,500 jobs open in Baltimore’s health systems. Also, Anne Arundel and Johns Hopkins are working to build a new community health center near Odenton. CareFirst is looking to hire as many as 200 nurses in a new primary care medical home program, and Kennedy Krieger is hiring for 50 positions. Finally, the Maryland Health Care Commission approved Holy Cross Hospital’s plan for a 93-bed hospital in Montgomery County.

Boston
The near term demand for health care workers in Boston improved slightly during Q1 of 2011 with the announcement by Partners Healthcare of its plans for construction and upgrades. Partners is planning expanded oncology and emergency services at Massachusetts General Hospital and a new 132-bed facility to replace the existing Spaulding Rehab Hospital.

Charlotte
The near term demand for health care workers in the Charlotte metro rose slightly in the first quarter of 2011. Of note, Presbyterian Healthcare competed its four-story addition with 90 new patient rooms. They were also able to add 74 beds to their Hawthorne Lane facility. The Carolinas HealthCare System received approval for an expansion of 25 acute-care beds at CMC-Union. And finally, due to state regulatory changes, Mecklenburg County will gain 107 new hospital beds.

Chicago
After a decline last quarter, the Chicago metropolitan area health care labor market improved again during Q1 despite some warning signs of continued rough times ahead. Of note during the quarter, many of the 138 Cook County nurses previously laid-off have been able to find employment at other hospitals, leaving Cook County with 32 unfilled nursing positions. Also, Loyola University has sold its hospital system relieving itself of debt and a system consistently operating in the red.
Cleveland
The near term demand for health care workers in the Cleveland metropolitan area fell during the first quarter as the state abandoned plans to build a new mental health hospital, expected to create 200 new jobs. However, Fairview Hospital is seeking approval to expand their ICU and ED. If approved they would expect work to be completed by 2013.

Dallas
The near term demand for health care workers in the Dallas-Ft Worth metropolitan area dropped slightly during Q1 2011. Of particular note during the quarter was the announcement that Forest Park Medical Centers plans to add new locations including Fort Worth, adding 400 jobs.

Denver
The near term demand for health care workers in the Denver metropolitan area weakened during the first quarter of 2011. On a comparative basis, the strength of the Denver health care labor market as measured by its Q1 LMPI score fell by 20% to 45.8, compared to the national composite of 51.5, up 4%% from the prior quarter.

Detroit
The near term demand for health care workers in the Detroit metropolitan area improved slightly during the first quarter of 2011. Of note during the quarter, St. Joseph Mercy Saline expanded its short-term rehab to 25 beds, with expectation to increase to 40. Huron Valley-Sinai received approval to renovate and add 23 private rooms at the cost of $7 million. Also, DMC’s Sinai-Grace Hospital let go of 20 employees not involved in patient care in order to add 20 new patient care positions. They are continuing to hire within patient care, adding 120 full time employees within the last year.

Houston
The near term demand for health care workers in the Houston metropolitan area dipped slightly during the first quarter of 2011. Of note, Acuity Hospital laid off the majority of its staff– 221 employees-as it has been struggling with cash flow for many months. On a positive note, Menninger’s construction project is resuming, on a smaller scale, but planning to break ground near the Texas Medical Center. Also, Kingwood Medical Center completed an expansion project in January that adds 56 new private rooms, an expanded laboratory and imaging department.

Kansas City
The near term demand for health care workers in the Kansas City metro area improved slightly during the first quarter of 2011. Of note, Shawnee Mission Medical Center finished its $20 million expansion, increasing the facilities capacity to 504 beds. On the other hand, Providence Medical Center and Saint John Hospital laid off a total of 89 employees between the two hospitals, due to fewer patients and increased uncompensated care.

Las Vegas
The near term demand for health care workers in the Las Vegas metro area declined during the first quarter despite relatively little news. Of note, the Nevada Cancer Institute announced a need to layoff 30 more employees due to the economy.

Los Angeles
Despite an announcement in March by UnitedHeathcare of a 180-person layoff, the near term demand for health care workers in the Los Angeles area actually improved slightly during Q1 2011. Also of note, the Los Angeles County Board of Supervisors approved funding for the new MLK, Jr. Hospital. The funding covers start up costs to go toward purchasing beds and medical equipment. Construction of the new hospital is expected to be completed by 2013.

Miami
The near term demand for health care workers in the Miami metropolitan area continued to improve during the first quarter of 2011. Of note, a number of expansion plans were announced for this year including Miami Children’s, Memorial Health, Baptist Health South Florida, Bethesda Healthcare, Miami Jewish, University of Miami and Aventura.

Minneapolis
The near term demand for health care workers in the Minneapolis-St. Paul metropolitan area remained steady during the first quarter of 2011. Of note, HealthPartners’ Regions Hospital is reviving a construction project form 2009. The planned mental health facility is set to begin construction in the spring with completion estimated for 2013.

New York City
The near term demand for health care workers in the New York metro area continued to improve during the first quarter of 2011. Of particular note during the quarter, a health facility with emergency care will open in Greenwich Village after a deal was struck among Saint Vincent Catholic Medical Centers, the North Shore-LIJ Health System and the Rudin family. Plans call for a neighborhood medical complex as part of a proposed redevelopment project that is expected to treat more than 72,000 patients annually and employ 300 people.

Orlando
The near term demand for health care workers in the Orlando metropolitan area improved notably during the first quarter of 2011. Among the news of the quarter, the new Nemours Children’s Hospital, now under construction in southeast Orlando, will hire 700 employees between next fall and its fall 2012 opening. Ocala-based Concordis Senior Living LLC plans to break ground in June on a $10 million assisted living facility in Ocoee for Alzheimer’s and dementia patients. And Health Central is seeking to build a new $19.4 million, 60-bed post-acute rehabilitation facility on its 90-acre Ocoee hospital campus.

Philadelphia
The near term demand for health care workers in the Philadelphia metro area continued to improve during the first quarter of 2011. Of note, Mercy Suburban announced plans to build a $8.5 million cancer center at its main campus, St. Luke’s Quakertown officially opened its new health and vascular center in Upper Bucks County, and 1500 jobs are projected to open at Jefferson Health System Inc. (421), Children’s Hospital of Philadelphia (412), Main Line Health (434) and University of Pennsylvania and Health System (278) in the first half of this year.

Phoenix
The near term demand for health care workers in the Phoenix metropolitan area weakened during the first quarter of 2011 yet remained inline with much of the rest of the country. Of note, Banner Health announced plans to build a health center in the growing city of Maricopa and Scottsdale Healthcare announced plans to build a $17 million rehabilitation hospital.

Pittsburgh
The near term demand for health care workers in the Pittsburgh metropolitan area remained steady during the first quarter of 2011. Of note during the quarter, Excela Westmoreland opened an expanded emergency department while also announcing the closure of the former Mercy Jeannette Hospital.

Portland
The near term demand for health care workers in the Portland metropolitan area improved during the 1st quarter of 2011. Of note, Legacy Emmanuel’s $242 million expansion of Children’s Hospital continues on schedule and is slated to open in early 2012.

Riverside

Please note that the Q4 2010 totals have been slightly revised.

The near term demand for health care workers continued to demonstrate volatility during the first quarter of 2011. After a significant gain last quarter, demand weakened although remained stronger than much of the rest of the country. Of note during the quarter, Loma Linda-Murrieta awaited final approval to open its new 106-bed hospital and Inland Valley Medical Center in Wildomar opened an expanded emergency room and a new intensive care unit.

Sacramento
The near term demand for health care workers in the Sacramento area held steady during the 1st quarter of 2011. Of note, Sutter Health announced that it will add 15 beds at its inpatient rehabilitation center in Roseville late this year to meet increased demand. Mercy General is also gearing up to open a new $170 million heart center in mid 2012, that will include 91 private patient rooms, four cardiac operating rooms, an upgraded cardiac intensive care unit and a new cardiac rehabilitation area.

San Diego
The near team demand for health care workers in the San Diego metropolitan area weakened during the first quarter of 2011. Of particular note during the quarter, Alvarado Hospital announced a significant reduction in staff as part of a major restructuring that included 249 layoffs.

San Francisco Bay
The near-term demand for health care workers in the San Francisco Bay Area rebounded notably during the first quarter of 2011 after a lackluster fourth quarter. Of particular note was an announcement by Signature Healthcare Services of their plans to have their new psychiatric hospital up and running by the end of the year, an event that will create approximately 300 jobs.

San Jose
The near-term demand for health care workers in the San Jose metro area rebounded notably during the first quarter of 2011 despite some weak spots. Of note, Good Samaritan Hospital began an expansion that will include a specialized intensive care unit for neurosciences and nearly 50 additional private patients rooms. Regional Medical Center of San Jose also broke ground on a new 160,000-square-foot inpatient tower, which will largely replace the existing 247-bed facility. On a negative note, Seton Medical Center prepared for a round new layoffs as it continued to deal with revenue shortfalls.

Seattle
The near-term demand for health care workers in the Seattle metropolitan area remained flat during the first quarter of 2011 despite some notable news announcements during the quarter. Of particular note, Tacoma-based Franciscan Health Systems opened a 25-bed hospital in Enumclaw that includes a 24-hour emergency department, 12 emergency department treatment rooms and a rooftop landing pad for emergency helicopters. MultiCare Health System’s new $400 million tower at Good Samaritan Hospital in Puyallup will also officially open shortly for patients. The new tower has 89 beds; the adjacent, original hospital has 193 beds. On a negative note, King County’s Public Health department announced plans to lay off 123 people, citing a 50 percent funding cut to a program that serves low-income pregnant women and their infants.

St. Louis
The near-term demand for health care workers in the St, Louis metropolitan area improved markedly during the first quarter of 2011. Of note, three organizations - BJC HealthCare, SSM Health Care and St. John’s Mercy Health Care currently account for just fewer than half of the 2,800 open health positions in the area. Also of note during the quarter, the Southern Illinois Healthcare Foundation has requested permission from the Illinois Health Facilities and Services Review Board to shut down Kenneth Hall Regional Hospital, which has been operating in the red for more than a decade. Finally, Shriners Hospital for Children’s plan to build a new hospital at Washington University Medical Center has been delayed once again due to the economy.

Tampa Bay
Please note that the Q4 2010 totals have been slightly revised.

The near-term demand for health care workers in the Tampa Bay metropolitan area was off notably from the prior quarter but remained stronger than much of the rest of the country during Q1 2011. Of particular note, work is now under way on the largest construction project at Sarasota Memorial Hospital in half a century, that includes a nine-story tower, expected to be completed in 2013. In all, over $800 million in health care construction projects are under way throughout the area.

Washington D.C.
The near-term demand for health care workers in the Washington D.C. metropolitan area held steady during the 1st quarter of 2011. Of particular note during the quarter, Holy Cross Hospital received permission form the Maryland Health Care Commission to begin two construction projects including a controversial new hospital in Germantown. The Commission rejected rival Adventist HealthCare’s proposal to build a facility six miles north in Clarksburg.

Table of Contents