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Detroit-Warren-Livonia, MI

Detroit-Warren-Livonia, MI
Q2 2010 - Market Summary

The Detroit health care labor market continued to rebound during Q2, and the near term demand for health care workers in the area improved considerably.

Of particular note: the University of Michigan’s C.S. Mott Children’s and Von Voigtlander Women’s Hospitals are now slated to open a year ahead of schedule which will add 500 new jobs to the University of Michigan Health System. Henry Ford Health System announced a $500 million expansion of its main hospital campus in Detroit and is hoping to attract another $500 million from developers for a new 210-bed patient tower, surgical center, medical office building, cancer institute and emergency department. Havenwyck Hospital opened a new 22-bed acute inpatient unit that is part of a larger $27 million expansion project. And a final agreement was signed for the purchase of the Detroit Medical Center and its eight hospitals by Vanguard Health Systems Inc.

On a comparative basis, the Detroit health care labor market outperformed much of the rest of the country during Q2. Its Q2 LMPI score of 115.3, up 100% from the prior quarter, compares to the national composite of 58.6.



Q2 Workforce Announcements

Vanguard Health Systems signs agreement to purchase DMC. June 11, 2010
 A final agreement has been signed for the purchase of the Detroit Medical Center and its eight hospitals by Vanguard Health Systems Inc.
http://www.crainsdetroit.com/article/20100611/FREE/100619971

UM OKs plan to expand emergency department in $17.7 million project. June 7, 2010
The University of Michigan Health System will begin a $17.7 million project later this year to renovate and expand its emergency department by 6,000 square feet.
http://www.crainsdetroit.com/article/20100607/HEALTH/306079997

St. Joseph Mercy Health System closes obstetrics, inpatient units at Livingston and Saline hospitals. June 2, 2010
Citing low volume and declining reimbursement, seven-hospital St. Joseph Mercy Health System in Ann Arbor will close obstetric services at St. Joseph Mercy Livingston Hospital and its 74-bed inpatient unit at St. Joseph Mercy Saline Hospital. About 50 affected employees at the two hospitals will be offered positions at other St. Joseph hospitals. To cut expenses in 2009, St. Joseph Mercy reduced its workforce by about 350 full-time equivalent employees.
http://www.crainsdetroit.com/article/20100602/FREE/100609968

University of Michigan readying new children’s, women’s hospitals a year ahead of schedule. June 2, 2010
The University of Michigan’s C.S. Mott Children’s and Von Voigtlander Women’s Hospitals are now slated to open next fall, a full year ahead of schedule. The $754 million project - one of the state’s largest - is expected to eventually add 500 new jobs to the University of Michigan Health System.
http://www.crainsdetroit.com/article/20100602/C03/306029995

DMC Sinai-Grace Hospital to open 10-bed hospice unit. April 20, 2010
DMC Sinai-Grace Hospital is opening a 10-bed hospice unit under management of Seasons Hospice & Palliative Care of Michigan.
http://www.crainsdetroit.com/article/20100420/FREE/100429994

Havenwyck Hospital in Auburn Hills opens new inpatient unit. April 19, 2010
Havenwyck Hospital, a 203-bed psychiatric and substance abuse facility in Auburn Hills, has opened a new 22-bed acute inpatient unit that is part of a larger $27 million expansion project.
http://www.crainsdetroit.com/article/20100419/HEALTH/304199994

Henry Ford Health System plans $500 million expansion. April 5, 2010
Henry Ford Health System is planning a $500 million expansion of its main hospital campus in Detroit and is hoping to attract another $500 million from developers. The medical facility expansion would include a new 210-bed patient tower, surgical center, medical office building, cancer institute and emergency department.
http://www.crainsdetroit.com/article/20100405/FREE/100409959

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 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 Detroit-Warren-Livonia, MI 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 Detroit-Warren-Livonia, MI 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 Detroit-Warren-Livonia, MI market.

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

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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