The near-term demand for health care workers in the Chicago metropolitan area held relatively steady during Q2 2010. Of note during the quarter, Cook County unveiled a proposal to scale back expensive inpatient care in favor of expanding the county’s network of clinics and specialty-care sites, which would likely result in further reductions to the county’s health workforce.

Q2 Workforce Announcements

Cook County prescribes 5-year health system overhaul. June 10, 2010
The proposal calls for scaling back expensive inpatient care in favor of expanding the county’s network of clinics and specialty-care sites. Two of the county’s three hospitals, both lightly used money-losers, would be converted to treat patients on an outpatient basis. Those moves are likely to lead to an even bigger reduction of the county’s roughly 6,200 health-care staffers.
http://www.chicagobusiness.com/cgi-bin/news.pl?id=38527

Previous market news

Hospitals & Health Systems

Source: US News & World Report

Education Program Expansion and Closures

No notable education program expansions and closures announced during Q2 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 Chicago-Naperville-Joliet market.

Source: http://www2.standardandpoors.com accessed 6/28/2010

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 Chicago-Naperville-Joliet market.

Source: www.census.gov accessed 6/28/2010

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 Chicago-Naperville-Joliet market.

Source: www.bls.gov accessed 6/28/2010

Additional Factors Influencing HWS Labor Market Pulse^TM Index

• U.S. Census Bureau Population 9,569,624, #3 largest market
• U.S. Census Bureau Population 246th oldest market
• U.S. Census Bureau Population Growth 5.2%, #221 fastest growing market