Boston-Cambridge-Quincy, MA-NH
The near term demand for health care workers in the Boston metropolitan area slowed slightly during the second quarter as the state department of Public Health announced 50 job cuts and hospitals noted overall cost pressures tightening budgets at local hospitals. However, South Shore Hospital did announce a 60-bed expansion resuming this summer after being delayed by the slow economy.
On a comparative basis, the Boston health care labor market weakened during the quarter as measured by its Q1 LMPI score of 46.2, down just 2% from the prior quarter, and slightly weaker than the national composite of 49.9.
Q2 Workforce Announcements
Cost pressures expected to put squeeze on hospital support staff. June 3, 2011
Pending state health care payment reform legislation, if approved, would significantly change the way hospitals do business. In the future, hospitals may receive a lump sum to manage a patient’s care, versus payments for each procedure. This means hospitals will need to serve more patients, not serve up more procedures, to survive financially. “We will need to increase productivity, which means people will be filling multiple jobs, not so much on the clinical side but on the administrative side,” Steve Weiner, chair of the health law practice at Mintz Levin Cohn Ferris Glovsky and Popeo, said. Weiner said he is seeing a lot of empty positions go unfilled as hospitals try to save cash.
http://www.bizjournals.com/boston/print-edition/2011/06/03/cost-pressures-expected-to-put-squeeze.html
Public health workers are warned 50 jobs must go. May 3, 2011
Massachusetts Department of Public Health officials have begun notifying workers of layoffs as part of an effort to slash payroll and cut 50 jobs.
http://articles.boston.com/2011-05-03/news/29500004_1_layoff-notices-budget-cuts-funding-health-costs
Employment enigma: Big Mass. companies show jobs decline. April 29, 2011
At UMass Memorial Health Care, which operates five Massachusetts hospitals, 747 positions were lost over the past year, more than double the 350 cuts announced in October. Spokesman Rob Brogna said the cutbacks were the result of projected reductions in payments and rising expenses for salaries and for medical supplies, medications and equipment.
http://www.bizjournals.com/boston/print-edition/2011/04/29/big-mass-companies-show-jobs-decline.html?page=all
South Shore Hospital to expand this summer. April 7, 2011
Work on a planned 60-bed expansion of South Shore Hospital in Weymouth is on schedule to begin this summer, the Patriot Ledger reports. The $50 million expansion involves extending the hospital’s Emerson Building by 40 feet and adding two additional floors to the four-story building. The work had been put off for a year because of the poor economy.
http://www.bizjournals.com/boston/blog/mass_roundup/2011/04/south-shore-hospital-to-expand-this.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 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 Boston-Cambridge-Quincy, MA-NH market.
Source: http://www2.standardandpoors.com accessed 7/7/2011
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 Boston-Cambridge-Quincy, MA-NH market.
Source: www.census.gov accessed 7/7/2011
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 Boston-Cambridge-Quincy, MA-NH market.
Source: www.bls.gov accessed 7/7/2011
Additional Factors Influencing HWS Labor Market PulseTM Index
- U.S. Census Bureau Population 4,522,858, #10 largest market
- U.S Census Bureau Population 119th oldest market
- U.S. Census Bureau Population Growth 3%, #264 fastest growing market
- Executive Summary
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