San Francisco-Oakland-Fremont, CA
Q2 2010 - Market Summary

The near term demand for health care workers in the San Francisco Bay Area fell off slightly during Q2 after a banner first quarter. Of note this quarter was the announcement by Children’s Hospital Oakland that it would lay off 17 employees as part of its restructuring and cost saving plan. But that announcement was more than countered by an upward adjustment to the estimated number of jobs created by the new UCSF Mission Bay Hospital.

Q2 Workforce Announcements

New hospital is key to UCSF’s cash flow, growth. June 11, 2010
Top officials at UC San Francisco Medical Center say their planned $1.5 billion hospital in Mission Bay could be the “tipping point” that establishes the area as a thriving economic center. The proposed 289-bed Mission Bay women’s, children’s and cancer specialty hospital, slated to open in 2014, could be the catalyst for an even more impressive economic footprint. It plans to bring more than 1,000 hospital employees to the new medical campus.
http://sanfrancisco.bizjournals.com/sanfrancisco/stories/2010/...

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 San Francisco-Oakland-Fremont, CA 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 San Francisco-Oakland-Fremont, CA 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 San Francisco-Oakland-Fremont, CA market.

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

Additional Factors Influencing HWS Labor Market Pulse^TM Index

• U.S. Census Bureau Population 4,274,531, #13 largest market
• U.S. Census Bureau Population #159 oldest market
• U.S. Census Bureau Population Growth 3.7%, #249 fastest growing market