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Los Angeles-Long Beach-Santa Ana, CA

Los Angeles-Long Beach-Santa Ana, CA
Q1 2011 - Market Summary



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.

On a comparative basis, the Los Angeles health care labor market improved compared to much of the rest of the country during Q1. Its Q4 LMPI score was up 14% from the prior quarter to 48.6 which is slightly below the national composite of 51.5.

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


Q1 Workforce Announcements

California Hospital News Roundup. March 11, 2011
 The Los Angeles County Board of Supervisors approved up to $50 million in funding for the new Martin Luther King, Jr. Hospital. The funds would cover five years of startup costs, including $10 million that would be released now. Most of the initial funds would go toward purchasing hospital beds and other medical equipment not covered under the hospital’s capital budget. Construction of the 120-bed medical center is expected to be completed in early 2013.
http://www.californiahealthline.org/articles/2011/3/11/california-hospital-news-roundup-for-the-week-of-march-8-2011.aspx?topic=hospitals

UnitedHealthcare lays off 180 in O.C. March 6, 2011
UnitedHealthcare Medicare & Retirement laid off 180 workers in Santa Ana today as part of a company consolidation. The health insurer wanted to streamline activities that are being done in multiple places. The Santa Ana work will be shifted to other business locations, including Minnesota, Wisconsin and Virginia.
http://www.ocregister.com/articles/unitedhealthcare-290667-lays-medicare.html

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 Los Angeles-Long Beach-Santa Ana, CA 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 Los Angeles-Long Beach-Santa Ana, CA 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 Los Angeles-Long Beach-Santa Ana, CA market.

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

Additional Factors Influencing HWS Labor Market PulseTM Index

  • U.S. Census Bureau Population 12,872,808, #2 largest market
  • U.S. Census Bureau Population #298 oldest market
  • U.S. Census Bureau Population Growth 4.1%, #242 fastest growing market
   

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