Houston-Baytown-Sugar Land, TX
Q1 2011 - Market Summary

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.

Q1 Workforce Announcements

Menninger’s new clinic scaled down, but moving forward. March 11, 2011
The Menninger Clinic is finally moving forward with a new campus near the Texas Medical Center, about two years behind schedule and on a smaller scale than originally planned. The Menninger Clinic is preparing to break ground on a new 144-bed complex near the Texas Medical Center that was delayed due to the recession.
http://www.bizjournals.com/houston/print-edition/2011/03/11/menningers-new-clinic-scaled-down.html
http://www.bizjournals.com/houston/news/2011/03/03/menninger-clinic-set-to-proceed-with.html

Hospitals and Health Systems

Source: US News & World Report

Education Program Expansions and Closures

Nursing school to open, despite possible health cuts. January 28, 2011
Proposed budget cuts to the state’s Professional Nursing Shortage Reduction Fund have not halted the forward motion of a new Houston nursing school on track to open in February. Texas has previously invested in increasing the number of nurses, and Texas nursing schools have been working to expand the number of graduates, but many worry that the state’s proposed slashing of $49.7 million to the Professional Nursing Shortage Reduction Fund will turn back the progress that has been made and result in higher nurse vacancy rates in area hospitals. Chamberlain College of Nursing is aiming to reverse that trend by opening its first campus in Houston next month.
http://www.bizjournals.com/houston/print-edition/2011/01/28/nursing-school-to-open-despite.html

Education Programs

Source: The Integrated Postsecondary Education Data System

Health of the Local Economy

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 Houston-Baytown-Sugar Land, TX 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 Houston-Baytown-Sugar Land, TX market.

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

Additional Factors Influencing HWS Labor Market Pulse^TM Index

• U.S. Census Bureau Population 5,728,143, #6 largest market
• U.S. Census Bureau Population 309th oldest market
• U.S. Census Bureau Population Growth 21.5%, #34 fastest growing market