San Francisco-Oakland-Fremont, CA
Q3 2010 - Market Summary

The near term demand for health care workers in the SF Bay Area slowed during Q3 after a robust first half of the year, but still remained stronger than much of the rest of the country. Of note during the quarter, there was much activity in the North Bay. Sutter Health formally broke ground on its new $284 million hospital in Santa Rosa and Kaiser Santa Rosa was poised to open a new wing that will increase the number of licensed beds to 167 from 197. Nearby in Napa, Queen Valley Medical Center began construction on a 72,000 square foot expansion that increase ICU beds by 20%. On a negative note, a number of Bay Area hospitals have quietly continued to lay off workers as part of earlier announced cuts.

Q3 Workforce Announcements

Health Care: Sutter breaks ground for hospital. September 27, 2010
Sutter Health celebrated the formal groundbreaking for its new, $284 million hospital in Santa Rosa that will replace the seismically unsafe Chanate facility. The new hospital will have 82 beds with the possibility of a 27-bed expansion.
Kaiser Permanente Medical Center of Santa Rosa is poised to open its new, five-story hospital wing. All told, the 146,400-square-foot project will increase licensed beds from 117 to 167, including 10 new ICU beds and 17 new beds in the ED.
At Queen of the Valley Medical Center in Napa, construction is under way on a 72,000-square-foot expansion that will enhance patient care by increasing intensive care unit beds by 20 percent.
http://www.northbaybusinessjournal.com/25240/health-care-sutter-...

Previous market news

Hospitals and Health Systems

Source: US News & World Report

Education Program Expansion and Closures

Children’s Oakland nabs nearly $4M for primary care training. September 29, 2010
Children’s Hospital & Research Center Oakland announced that its pediatric residency program has been awarded $3.84 million by the U.S. Department of Health and Human Services as part of national health reform. The grant will be used to train up to 20 new pediatric residents over a five-year period beginning in 2011.
http://sanfrancisco.bizjournals.com/sanfrancisco/stories/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 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 San Francisco-Oakland-Fremont, CA 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 San Francisco-Oakland-Fremont, CA market.

Source: www.bls.gov accessed 10/1/2010

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