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Detroit-Warren-Livonia, MI

Detroit-Warren-Livonia, MI
Q1 2011 - Market Summary



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.

On a comparative basis, the Detroit-Warren-Livonia health care labor market improved relative to Q4, registering a Q1 LMPI score of 48.6, up 13% from the prior quarter, but still slightly low compared to the national composite of 51.5.



Q1 Workforce Announcements

Evangelical Homes leases space at St. Joseph Mercy Saline for 25 rehab beds. March 24, 2011
 Evangelical Homes of Michigan has signed a 15-year lease to rent a 21,000-square-foot section of St. Joseph Mercy Saline to expand its short-term rehabilitation unit and support services at Evangelical Homes Saline. They have 25 rehab beds now and want to expand that to 40.
http://www.crainsdetroit.com/article/20110316/FREE/110319933

Huron Valley-Sinai to renovate, add 23 rooms: $7M project wins state approval. March 13, 2011
Huron Valley-Sinai Hospital in Commerce Township received state approval last month to renovate and build more private rooms. The hospital will grow from 33 to 94 private beds and add 23 rooms.
http://www.crainsdetroit.com/article/20110313/SUB01/303139989

DMC’s Sinai-Grace Hospital says staff restructuring aims put more employees in patient care. January 24, 2011
The Detroit Medical Center’s Sinai-Grace Hospital has laid off 20 employees not involved in patient care so it can hire 20 more to take care of patients. Sinai-Grace now has 120 more full time employees than it had one year ago and is continuing to hire caregiver positions.
http://www.crainsdetroit.com/article/20110126/FREE/110129922

Previous market news

Hospitals and Health Systems

Source: US News & World Report

Education Program Expansion and Closures

No notable education program expansions and closures announced during Q1 2011

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 Detroit-Warren-Livonia, MI market.

Source: http://www2.standardandpoors.com accessed 3/29/2011

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 Detroit-Warren-Livonia, MI market.

Source: www.census.gov accessed 3/29/2011

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 Detroit-Warren-Livonia, MI market.

Source: www.bls.gov accessed 3/29/2011

Additional Factors Influencing HWS Labor Market PulseTM Index

  • U.S. Census Bureau Population 4,425,110 #11 largest market
  • U.S. Census Bureau Population 167th oldest market
  • U.S. Census Bureau Population Growth -.6%, #318 fastest growing market
   

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