Detroit-Warren-Livonia, MI
Detroit-Warren-Livonia, MI
Q3 2010 - Market Summary
The near term demand for health care workers in the Detroit metropolitan area slowed notably during Q3 2010 after a spike in Q2. Expansions announced this quarter were considerably smaller compared to last quarter. Of note, Crittenton Hospital announced it will embark on a new campaign to raise money for a new five-story patient tower. Also, the Chelsea Community Hospital began a renovation, converting all of its semi-private rooms to private rooms, and St. Mary Mercy Hospital also began converting its semi-private rooms to private in its proposed renovations.
Comparatively, the Detroit health care labor market dropped further than the rest of the country during Q3, but still remained strong, registering an LMPI score of 67.66 vs. the national composite of 50.62, down 14% from the prior quarter.
Q3 Workforce Announcements
Crittenton Hospital to launch $20 million capital campaign to build new patient tower. September 20, 2010
Crittenton Hospital Medical Center in Rochester Hills is planning to launch a $20 million capital fundraising campaign on Nov. 7 to build a new five-story patient tower by 2014. The patient tower will allow Crittenton, which is licensed for 290 beds but only staffs 220, to convert most of its semi-private rooms into private rooms.
http://www.crainsdetroit.com/article/20100920/HEALTH/309209996
Trinity’s Chelsea Community Hospital embarks on $60 million renovation project. August 2, 2010
Chelsea Community Hospital is beginning a $60 million renovation to build a new two-story wing, convert all its semiprivate rooms to private rooms and change the main entrance of the hospital that is licensed for 113 beds. The Chelsea project also includes a new emergency department, diagnostic imaging center and renovation of the cardiopulmonary and physical therapy areas.
http://www.crainsdetroit.com/article/20100802/HEALTH/308029996
Detroit Medical Center: $500 million in construction will follow Vanguard sale. July 21, 2010
The head of the Detroit Medical Center says it will start 15 construction projects costing $500 million as soon as its sale to Vanguard Health Systems Inc. is complete.
http://www.crainsdetroit.com/article/20100721/C03/307219998
St. Mary seeks to add $81.8M wing. July 12, 2010
Under its CON proposal, St. Mary Mercy also would renovate its existing inpatient facilities to convert 51-year-old semi-private rooms into 224 private rooms.
http://www.allbusiness.com/health-care/health-care-facilities-hospitals/14829544-1.html
Hospitals and Health Systems
Source: US News & World Report
Education Program Expansion and Closures
No notable education program expansions and closures announced during Q3 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 Detroit-Warren-Livonia, MI market.
Source: http://www2.standardandpoors.com accessed 10/1/2010
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 Detroit-Warren-Livonia, MI market.
Source: www.census.gov accessed 10/1/2010
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 Detroit-Warren-Livonia, MI market.
Source: www.bls.gov accessed 10/1/2010
Additional Factors Influencing HWS Labor Market PulseTM Index
- U.S. Census Bureau Population 4,425,110 #11 largest market
- U.S. Census Bureau Population 167th oldest market
- U.S. Census Bureau Population Growth -.6%, #318 fastest growing market
- Executive Summary
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