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Executive Summary

HWS Labor Market Pulse® Index (LMPI)
Q3 2009 Results

November 2009

HWS is pleased to announce the release of Q3 results for the HWS Labor Market Pulse® Index (LMPI). The HWS LMPI is a leading indicator of local health care labor market demand as it is derived from announced expansion and contraction plans, among other data. The Index measures where near-term demand for health care workers is strongest based on a number of tracking variables including temporary health workforce shortages and surpluses, facility and bed closures, announced layoffs and expansions, and local economic trends.

2009 Third Quarter LMPI Highlights

• Near-term demand for health care workers growing fastest in Houston, Orlando and Atlanta for the third quarter of 2009. The San Francisco Bay, Detroit and Los Angeles markets ranked at the bottom of the 30 markets studied.

• Much of the growth is being fueled by newly announced expansion plans and larger facility openings at organizations including the West Houston Medical Center, the Emory Eastside Medical Center in Gwinnett, and Sinai Hospital in Baltimore.

• In metropolitan markets including San Francisco Bay, Los Angeles, and Sacramento, large scale layoffs at Kaiser Permanente had a material impact this past quarter. Growth also slowed notably in Charlotte although the Charlotte market still remains strong relative to the rest of the country.

• In the most recent quarter, 16 markets of the 30 tracked showed signs of accelerated expansion (vs. 20 in the prior quarter) but only 10 markets fell below national averages.

• The LMPI composite index, a representative basket of the 30 largest markets, posted a slight 1% increase in the third quarter of 2009 from the second quarter of 2009, as the national health care labor market began to slowly rebound and projects began to be put back on track.

2009 Third Quarter LMPI Market Highlights

Atlanta-Sandy Springs-Marietta, GA
 The demand for health care workers in the Atlanta metropolitan area continued to improve during the third quarter of 2009, building on the momentum regained in Q2. Of note during the quarter, Emory Healthcare announced a $100 million expansion to its Eastside Medical Center that will include 400 jobs, an ER expansion, a 73-bed patient tower, a new medical office building and imaging center. Other notable workforce-related news came from Grady Memorial, which announced plans to spend $12 million to expand and modernize and ER and trauma center (the busiest in the Southeast), and a $24 million investment by the Northside Hospital Health System into its Forsyth campus.

Baltimore-Towson, MD
 The demand for health care workers in the Baltimore metropolitan area strengthened during Q3, driven primarily by the opening of Sinai Hospital’s new building, featuring a 29-bed intensive care unit and a 36-bed intermediate care unit, and a $105 million four-story patient wing opened by Howard County General Hospital. Also of note during the quarter, Medstar absorbed St. Mary’s Hospital, and Upper Chesapeake Health System joined the University of Maryland System.

Boston-Cambridge-Quincy, MA-NH
 The near-term demand for health care workers in the Boston metropolitan area continued to improve during the third quarter of 2009, behind a slew of new projects, including a $30 million addition by Beth Israel Deaconess in Needham, that opened in October. Also of note during the quarter: UMass Medical School broke ground on a new facility that will double the amount of research space on campus, and likely bring 3,500 jobs to the central Massachusetts region. Partners HealthCare moved forward with the permit and pricing process for the new Spaulding Rehabilitation facility in the Charlestown Navy Yard after a four-year delay, as well as the redevelopment of the Massachusetts Mental Health Center in Boston. And Children’s began master-planning a new 10-story building in the Longwood Medical Area.

Charlotte-Gastonia-Concord, NC-SC
 The demand for health care workers in the Charlotte metropolitan area slipped notably during the 3rd quarter compared to Q2 but still remained stronger than much of the rest of the nation. Of note, Carolinas HealthCare System’s plans to build a prostate cancer center were derailed by state regulators who chose Cary Urology and Raleigh instead. Also of note during the quarter, CMC-NorthEast announced plans to add a dozen hospice beds to a Kannapolis facility.

Chicago-Naperville-Joliet, IL
 The near-term demand for health care workers in the Chicago metropolitan area improved during Q3 and is now inline with national estimates. This comes after a notable downturn during Q2. Of note during the quarter, the parent company of Blue Cross & Blue Shield of Illinois announced that it was shedding 4% of its workforce or 650 jobs, with approximately 200 coming from the local area. Northwestern Memorial submitted a proposal to add nearly 90 beds to its main outpatient tower, and Northwest Community Hospital announced a build-out of a new neonatal ICU that will feature 20 new special-care private nursery rooms expected to open in the Spring of 2010. Other announced expansion plans came from the University of Chicago Comer Children’s Hospital (40 new exam rooms) and Swedish Covenant Hospital (new MD office + 5 exam rooms).

Cleveland-Elyria-Mentor, OH
 The demand for health care workers in the Cleveland metropolitan area improved during the third quarter of 2009 and the number of workers required to meet announced expansion plans will likely exceed the number of announced positions eliminated or deferred. Of note during the quarter, University Hospitals opened its $27 million Concord Health Center that houses an urgent care center as well as primary and specialty services. In other news, MetroHealth System reported positive financial results after trimming 6 percent of its workforce in Q2.

Dallas-Fort Worth-Arlington, TX
 The strength of the Dallas health care labor market continued to slip during the third quarter of 2009 but the number of workers required to meet announced expansion plans will likely exceed the number of announced positions eliminated or deferred. Of note during the quarter, Cook Children’s Health Care System launched a $50 million capital campaign to help pay for its latest expansion announced in May, and American CareSource announced the expansion of its ancillary services provider network in a deal with MinuteClinic, the nation’s largest provider of retail-based health care centers.

Denver-Aurora, CO
 The growth in demand for health care workers in the Denver metropolitan area slipped slightly during the third quarter of 2009 but the number of workers required to meet announced expansion plans will likely exceed the number of announced positions eliminated or deferred. Of note during the quarter, Denver’s St. Anthony Hospital began the process to move from its current site to a new 25-acre parcel in Lakewood’s Federal Center, and will open a new orthopedic surgery hospital in August 2010 and a new hospital that will replace the Denver facility in the fall of 2011. Colorado Orthopedic and Surgical Hospital (COSH) also faced closure after the death of a patient.

Detroit-Warren-Livonia, MI
 The near-term demand for health care workers in the Detroit metropolitan area continued to improve during the 3rd quarter of 2009. Notable job loss occurred at Beaumont Hospitals, which cut 353 FTEs from low-volume departments but there were some bright spots as well. Beaumont Hospital in Troy completed its $58 million, 60,000 square foot expansion of its emergency center. And Henry Ford Hospital unveiled the final results of a $32 million expansion that will bring the number of ICU rooms to a state high 156.

Houston-Baytown-Sugar Land, TX
 The near-term demand for health care workers in the Houston-Baytown-Sugarland metropolitan area continued to improve during the third quarter of 2009. The demand for health care workers in the Houston metropolitan area remains positive and the number of workers required to meet announced expansion plans will likely exceed the number of announced positions eliminated or deferred. Of note during the quarter were a number of announced expansions including a $70 million announced plan at West Houston Medical Center to be focused on women’s cardiovascular, surgical and critical care services. Completion is expected by 2012. This comes on the heels of announced expansions by The Methodist Hospital System, Memorial Hermann Healthcare System, St. Luke’s Episcopal Health System, and the University of Texas M.D. Anderson Cancer Center. Also of note during the quarter, was the imminent opening of a new 30-bed facility at St. Luke’s-The Woodlands Lakeside Hospital, a joint venture between St. Luke’s and 63 physician investors that is expected to create 550 new jobs.

Kansas City, MO-IL
 The near-term demand for health care workers in the metropolitan Kansas City market slipped during the third quarter of 2009. During the quarter there was no notable workforce-related news reported.

Las Vegas-Paradise, NV
 The near-term demand for health care workers in the Las Vegas metropolitan area continued to drop during the third quarter of 2009, despite some bright spots. Of note during the quarter, Spring Valley Hospital Medical Center began seeing patients at its new 18-bed neonatal intensive care unit and its expanded special care nursery. However, Sunrise Hospital and Medical Center announced a 100-person layoff and more than 200 University Medical Center jobs were left vacant to cut costs.

Los Angeles-Long Beach-Santa Ana, CA
 The near-term demand for health care workers in the Los Angeles-Long Beach-Santa Ana metropolitan area fell notably during the third quarter of 2009, primarily due to an announced cut of 650 positions in the region by Kaiser Permanente in August. Also of note during quarter, the Los Angeles Metropolitan Medical Center was forced to close its ER during part of September due to understaffing after several nurses became sick with the flu. Los Angeles County leaders also approved a much-anticipated deal to reopen Martin Luther Kind Jr. Harbor Hospital in Willowbrook in late 2012.

Miami-Fort Lauderdale-Miami Beach, FL
 The near-term demand for health care workers in South Florida during the third quarter was stable and actually improved slightly from the prior quarter. However, in August Kindred Healthcare filed a notice with Florida’s Agency for Workforce Innovation that it intends to lay off 573 employees statewide, with 89 of the cuts coming in South Florida.

Minneapolis-St. Paul-Bloomington, MN-WI
 The near-term demand for health care workers in the Minneapolis-St. Paul metropolitan area rebounded in the third quarter of 2009. Of note, Children’s Hospitals and Clinics of Minnesota announced a fundraising initiative that aims to raise $13.5 million to support the development of 280 state-of-the-art private patient rooms.

New York-Northern NJ-Long Island, NY
 The near-term demand for health care workers in the New York metropolitan continued to improve slightly during the third quarter of 2009. Of note during the quarter, the New York Westchester Square Medical Center merger was called off for a second time, as St. Barnabas determined that it did not have the financial resources to complete the deal. Also of note, the Bloomberg administration and City Council agreed to fund an expansion of Coney Island Hospital’s ER and guarantee union wages for some service jobs as part of a plan to redevelop Coney Island.

Orlando-Kissimmee, FL
 The Orlando health care labor market regained strength during the third quarter after a slight pullback in Q2. Unlike most major markets in the country right now, the number of workers required to meet announced expansion plans in Orlando remains inadequate. Notably during the quarter, construction started on a $21 million expansion of the Dr. P. Phillips Baby Place at Winter Park Memorial Hospital that will result in 18 new postpartum rooms and seven new delivery rooms.

Philadelphia-Camden-Wilmington, PA, NJ, DE, MD
 The near-term demand for health care workers in the Philadelphia metropolitan area remained weak during the third quarter of 2009 although it improved slightly from Q2. The number of workers required to meet announced expansion plans will likely exceed the number of announced positions eliminated or deferred. Of note during the quarter was much discussion and testimony to state legislators about the potential impact of Senate Bill 850 that calls for $280 million in budget cuts that would result in a projected loss of 13,000 hospital-related jobs including more than 8,000 in the Philadelphia region.

Phoenix-Mesa-Scottsdale, AZ
 The near-term demand for health care workers in the Phoenix metropolitan area continued to improve during the second quarter of 2009 and the number of workers required to meet announced expansion plans will likely exceed the number of announced positions eliminated or deferred. It is unclear if this is a seasonal phenomenon or reflects a trend toward increasing demand for health care workers. Of note during the quarter, five community health centers in the Valley received a chunk of the $16.1 million in ARRA funding given out to centers across the state, which is expected to create 125 new jobs and serve over 50,000 new patients.

Pittsburgh, PA
 The near-term demand for health care workers in the Phoenix metropolitan area continued to improve during the second quarter of 2009 and the number of workers required to meet announced expansion plans will likely exceed the number of announced positions eliminated or deferred. It is unclear if this is a seasonal phenomenon or reflects a trend toward increasing demand for health care workers. Of note during the quarter, five community health centers in the Valley received a chunk of the $16.1 million in ARRA funding given out to centers across the state, which is expected to create 125 new jobs and serve over 50,000 new patients.

Portland-Vancouver-Beaverton, OR
 The near-term demand for health care workers in the Portland metropolitan area slowed during the third quarter but the number of workers required to meet announced expansion plans will likely exceed the number of announced positions eliminated or deferred. Notably during the quarter, a number of organizations put existing expansion plans on hold due to the current economic climate. These include Oregon Health & Science University, which put its planned $375 million hospital expansion on hold temporarily, Providence Health & Services, Legacy Health System, and Adventist Medical Center.

Riverside-San Bernardino-Ontario, CA
 The near-term demand for health care workers in the Riverside-San Bernardino-Ontario MSA remained stable during the third quarter of 2009 and the number of workers required to meet announced expansion plans remains inadequate. Of note during the quarter, plans have been announced by a local orthopedic surgeon and a developer to build medical offices and a new hospital in the San Jacinto gateway area at the northwest edge of the city. In Temecula, council members are seeking answers why Rancho Springs Medical center’s $53 million expansion project has yet to open, as well as why Temecula’s first hospital hasn’t broken ground.

Sacramento-Arden-Arcade-Roseville, CA
 The near-term demand for health care workers in the Sacramento metropolitan area during the third quarter of 2009 continued to improve despite significant layoffs at Kaiser Permanente, which included 200 in the region to offset enrollment losses and declining margins. These included 93 at Kaiser’s Morse Avenue medical center, 68 at the Kaiser Roseville, and 48 in South Sacramento. On a positive note, the Effort Oak Park Community Health Center, closed in December 2008, reopened with more than 150 employees and a $10 million annual budget.

San Diego-Carlsbad-San Marcos, CA
 The demand for health care workers in the San Diego metropolitan area continues to hold steady and the number of workers required to meet announced expansion plans will likely exceed the number of announced positions eliminated or deferred. Of note during the last quarter, Scripps Encinatas announced plans for a $350 million facility upgrade, which will add 529,000 square feet to the current campus.

San Francisco-Oakland-Fremont, CA
 As with other parts of the state, significant layoffs at Kaiser Permanente had a material impact on the SF Bay Area health care labor market during the third quarter of 2009 despite positive news elsewhere. In August, Kaiser announced that it was cutting 1,200 jobs in Northern California as it continues to struggle with enrollment losses and the tough economic environment. About a third of the jobs were temporary, on-call or short-hour employees. The SEIU United Healthcare Workers West was able to reach a compromise agreement that preserved 150 pharmacy jobs. On a positive note, John Muir received a $10 million gift to help fund a $170 million expansion at its Concord campus which will add 61 new private rooms and a larger ER. The new tower is set to open by early 2011. San Ramon Regional also recently won state regulatory approval to increase the size of its ER and expand its clinical lab space, which is also scheduled for completion in 2011.

San Jose-Sunnyvale-Santa Clara, CA
 As with the SF Bay market, the near-term demand for health care workers in the San Jose metropolitan area in the third quarter was notably impacted by a large number of Northern California layoffs announced by Kaiser Permanente. In August, Kaiser announced that it was cutting 1,200 jobs in Northern California as it continues to struggle with enrollment losses and the tough economic environment. About a third of the jobs were temporary, on-call or short-hour employees. The SEIU United Healthcare Workers West was able to reach a compromise agreement that preserved 150 pharmacy jobs. Also of note during the quarter was the reopening of El Camino Hospital Los Gatos, with a streamlined ER, three new specialty centers, and material upgrades to several departments.

Seattle-Bellevue-Everett, WA
 The near-term demand for health care workers in the Seattle metro area improved slightly during the third quarter of 2009. Of note during the quarter, the Seattle city examiner recommended that the city council deny a proposed 1.5 million square foot expansion at Seattle Children’s. Also of note, Northwest Hospital & Medical Center announced that it is joining the UW Medicine system.

St. Louis, MO-IL
 The near-term demand for health care workers in the St. Louis metropolitan area continued to improve in the third quarter of 2009 amidst a number of ongoing and recently announced expansion plans. In July, SSM St. Joseph Health Center announced that it was renovating what was formerly a behavioral health unit into a new 8,833 square foot ICU that would expand the number if available beds from 16 to 19 and increase the size of each room. Other projects continuing to move forward include the $200 million, 11-story BJC Institute of Health at Washington University, and Alton Memorial’s $45 million, three-story patient tower replacement in Metro East. At St. John’s, construction is underway on a new nine-story, $150 million patient tower. And just in September, BJC Healthcare announced that it was gearing up to start construction on a 12-story building in the Central West End that will serve as its headquarters.

Tampa-St. Petersburg-Clearwater, FL
 The demand for health care workers in the Tampa Bay metropolitan area continues to remain steady and improve. The number of workers required to meet announced expansion plans will likely exceed the number of announced positions eliminated or deferred. Of note during the last quarter, it was announced that the James A. Haley Veterans’ Hospital is in line for more than $21 million in new federal funding. UCH Pasco announced that it was looking for 30 additional RNs to staff a recently opened 50-bed specialty hospital in Pasco County. The Sarasota hospital district received a ratings upgrade that will help raise construction financing for a $168.6 million tower that will replace a 50-year old building and modernize inpatient space.

Washington-Arlington-Alexandria, DC-VA-MD-WV
 The near-term demand for health care workers in the Washington D.C. metro area held steady during the third quarter of 2009 and remains inline with the rest of the country. During the quarter there was no notable workforce-related news reported.

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Access to the full LMPI executive summary including all top line data and one full market report is available for $99 USD. For more information contact sales@healthws.com.

Access to the entire LMPI set of 30 reports plus the detailed executive summary is available for $1,995 USD and to all LMP Research members as part of their annual subscription. For more information contact sales@healthws.com.

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LMP Methodology

Labor Market Pulse scours local press releases, new articles and other verifiable sources to quantify the impact of acute and urgent care facility expansion and closures, large scale recruitment, and temporary workforce reduction announcements.

A proprietary estimate of net job creation (or reduction) is at the heart of the HWS Labor Market Pulse® Index (LMPI). The estimated net job creation is then adjusted for state labor market information estimates including total acute care employment in the local market, local employment trends, and other economic indicators included in this report. These adjustments allow Labor Market Pulse to compare local markets to each other and to larger national and international trends.

National health care workforce growth estimates are based on seasonally adjusted hospital employment estimates from the Bureau of Labor Statistics “Employment Situation New Release” available online at:

http://www.bls.gov/schedule/archives/empsit_nr.htm.

Details of Labor Market Pulse estimates and adjustments are held in strict confidence by Health Workforce Solutions LLC and considered trade secrets. For more information on this and other health workforce indices and indicators, contact info@healthws.com.

   

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