Houston-Baytown-Sugar Land, TX
Houston-Baytown-Sugar Land, TX
Q2 2011 - Market Summary
The near-term demand for health care workers in the Houston metropolitan area held firm during the second quarter despite a glut of new graduate nursing professionals in the area. Of note during the quarter, Victory Healthcare Holdings LLP announced plans to re-open a vacant hospital facility near the Texas Medical Center as Victory Medical Center Houston. The hospital is comprised of 20 private inpatient rooms, two semiprivate inpatient rooms, six operating rooms, eight preoperative bays, 12 post-operative recovery beds and two special procedure rooms. Also of note, Texas Emergency Care Center will be opening a free-standing emergency room in Atascocita this summer, and Medistar Corp. is partnering with Surgical Development Partners to build the 248-bed Bay Area Regional Medical Center in Webster.
On a comparative basis, the Houston health care labor market remained inline with much of the rest of the country during Q2. Its Q2 LMPI score of 49.1, up 5% from the prior quarter, was just under the national composite of 49.9.
Q2 Workforce Announcements
Victory leases former Acuity Hospital. June 24, 2011
Victory Healthcare Holdings LLP is breathing new life into a vacant hospital facility near the Texas Medical Center. Victory Healthcare, based in The Woodlands, signed the lease for the 48,000-square-foot hospital facility earlier in June and will reopen it as Victory Medical Center Houston. The hospital is comprised of 20 private inpatient rooms, two semiprivate inpatient rooms, six operating rooms, eight preoperative bays, 12 post-operative recovery beds and two special procedure rooms.
http://www.bizjournals.com/houston/print-edition/2011/06/24/victory-leases-former-acuity-hospital.html
Nursing grads face stiff competition as local jobs scarce. June 10, 2011
While some cities in Texas experience a critical nursing shortage, hospitals in Houston have a different problem. In fact, they are turning away hundreds of newly graduated nursing professionals.
http://www.bizjournals.com/houston/print-edition/2011/06/10/nursing-grads-face-stiff-competition.html
Texas Emergency to open Atascocita ER. May 19, 2011
Texas Emergency Care Center is opening a free-standing emergency room in Atascocita this summer. Texas Emergency Care Center officials said in a statement that the area is underserved, considering there are only two major hospitals serving the area with more than 400,000 residents.
http://www.bizjournals.com/houston/news/2011/05/19/texas-emergency-to-open-atascocita-er.html
New hospital coming to Webster. April 29, 2011
Medistar Corp. is partnering with Surgical Development Partners to build the 248-bed Bay Area Regional Medical Center in Webster. The nine-story acute-care hospital, which will eventually be expanded to 11 floors, is being built on the same 17.5 acres as Houston-based Medistar’s 110-bed Clear Lake Long Term Acute Care Hospital and its 110,000-square-foot medical office building
Also in the Houston area, Surgical Development Partners managed the North Cypress Medical Center, a 139-bed acute-care hospital and medical office building, which opened in January 2007. Surgical Development Partners is also planning to open a 108-bed acute care hospital in Austin in June 2012.
http://www.bizjournals.com/houston/print-edition/2011/04/29/new-hospital-coming-to-webster.html
Acuity hospital owner files Chapter 7, closes for good. April 22, 2011
Med Center WD LP, owner of the troubled Acuity Hospital of Houston, has filed for Chapter 7 bankruptcy following the permanent closure of the hospital in the Texas Medical Center - part of what may be a growing trend in health care. The Houston-based partnership includes more than 100 physicians serving as limited partners. Acuity shut its doors twice in two years - first in September 2008 due to damages suffered from Hurricane Ike, then, in January, financial issues caused it to lay off 221 employees and temporarily suspended services at its facility at 2001 Herman Drive.
http://www.bizjournals.com/houston/print-edition/2011/04/22/acuity-hospital-owner-files-chapter-7.html
Hospitals and Health Systems

Source: US News & World Report
Education Program Expansions 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
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 Houston-Baytown-Sugar Land, TX 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 Houston-Baytown-Sugar Land, TX market.
Source: www.bls.gov accessed 7/7/2011
Additional Factors Influencing HWS Labor Market PulseTM Index
- U.S. Census Bureau Population 5,728,143, #6 largest market
- U.S. Census Bureau Population 309th oldest market
- U.S. Census Bureau Population Growth 21.5%, #34 fastest growing market
- Executive Summary
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