Phoenix-Mesa-Scottsdale, AZ
Phoenix-Mesa-Scottsdale, AZ
Q2 2010 - Market Summary
After several strong quarters and growth, the near term demand for health care workers in the Phoenix metropolitan area fell off during Q2 of 2010. Of note is the elimination of 145 positions by Maricopa Integrated Health in order to save more than $7 million. By contrast, Banner Good Samaritan began a surgical services expansion that will add 6 operating rooms and additional waiting space, and the Phoenix VA Hospital is making plans for a $200 million clinic with primary care, mental health care, audiology, dermatology, rheumatology, optical, radiology and laboratory services.
On a comparative basis, the Phoenix health care labor market is now weaker than many other major metropolitan areas across the country. For the second quarter of 2010, Phoenix registered an LMPI score of 38.6 compared to the national composite index if 58.6 down 34% from the prior quarter.
Q2 Workforce Announcements
Banner to break ground on $71M project. June 23, 2010
Banner Good Samaritan Medical Center will break ground Thursday on a $71 million dollar expansion of its surgical services department in downtown Phoenix. The project, slated for completion in 2012, will add six operating rooms, double the number of recovery areas, and provide families with additional space for waiting for loved ones to come out of surgery.
http://phoenix.bizjournals.com/phoenix/stories/2010/06/21/daily35.html
Phoenix VA seeking $200M clinic. June 11, 2010
The Phoenix VA Hospital plans to build an outpatient clinic in downtown Phoenix. The hospital has submitted a request to build a 359,000-square-foot clinic that would provide primary care, mental health care, audiology, dermatology, rheumatology, optical, radiology and laboratory services.
http://phoenix.bizjournals.com/phoenix/stories/2010/06/14/story1.html
Maricopa Integrated Health eliminating 145 jobs. June 2, 2010
Feeling the pinch of state budget cuts, Maricopa Integrated Health System is eliminating 145 positions to save more than $7 million. Because many of the 145 positions are vacant, the actual number of people affected by the reduction in force is 87, less than 3 percent of the company’s total workforce.
http://phoenix.bizjournals.com/phoenix/stories/2010/05/31/daily31.html
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 Phoenix-Mesa-Scottsdale 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 Phoenix-Mesa-Scottsdale 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 Phoenix-Mesa-Scottsdale market.
Source: www.bls.gov accessed 6/28/2010
Additional Factors Influencing HWS Labor Market PulseTM Index
- U.S. Census Bureau Population 4,281,899, #12 largest market
- U.S. Census Bureau Population #275 oldest market
- U.S. Census Bureau Population Growth 31.7%, #11 fastest growing market
- Executive Summary
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