Labor Market Pulse » Executive Summary

Executive Summary

Q3 2011 HWS Labor Market Pulse® Index

LMPI Composite Index (historical)

SELECT MARKET HIGHLIGHTS

October 2011

HWS is pleased to announce the release of Q3 2011 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.

2011 Third Quarter LMPI Highlights

• The strength of the US health care labor markets showed continued sluggishness in the third quarter as measured by the HWS Labor Market Pulse Index® (LMPI), a leading indicator of near-term demand.

• For the third quarter of 2011, the near-term demand for health care workers was strongest in the Sacramento, Miami and Detroit metropolitan areas.

• Of the 30 major markets tracked by the HWS Labor Market Pulse Index® (LMPI), the weakest areas for the quarter included the New York, Seattle and Cleveland metropolitan areas.

• The LMPI composite index, a representative basket of the 30 largest markets, posted a 3% decline in the third quarter of 2011, after a similar 3% decline from Q1 to Q2.

• For the 3rd quarter ended 9/30/11, 14 markets of the 30 tracked by the LMPI showed signs of accelerated expansion (vs. 9 in the prior quarter).

2011 Select Market Third Quarter Highlights

Atlanta
The near-term demand for health care workers in the ATL metro area rebounded notably during the third quarter to levels not seen in a year. Of particular note during the quarter, it was announced that St. Francis Hospital in Columbus, Ga. will finally break ground on its $110 million expansion, after a two year delay. The expansion will add 230 private rooms, among other improvements. Also of note, Northside Hospital System plans to develop a $250 million medical campus in Cherokee County ¬which will include an 84-bed replacement hospital and a 100,000-square-foot multi-specialty medical office building. The project is expected to generate 500 new jobs.

Baltimore
The near-term demand for health care workers in the Baltimore metropolitan area remained relatively flat during Q3. Of note, Johns Hopkins Bayview announced plans for a $60M expansion to its ER and cancer facilities on its East Baltimore campus. Also of note, St. Joseph Medical Center plans to open a new health center in Harford County, where it seeks to tap into a swelling demand for medical services.

Boston
Despite some significant activity activity, the near-term demand for health care workers in the Boston area remained relatively flat during the third quarter. Of particular note, Baystate Health announced that it was eliminating 354 jobs across all three of its hospitals - Baystate Medical Center in Springfield, Baystate Mary Lane in Ware and Baystate Franklin Medical Center in Greenfield. On a positive note, the Whittier Health Network received final city permits to tear down the Port Healthcare Center in Newburyport and replace it with a larger, more modern health care complex, that includes a 54,000-square-foot complex and more than double the beds of the current 100-bed facility.

Charlotte
The near-term demand for health care workers in Charlotte slipped slightly during Q3 but remained stronger than much of the rest of the country. Of note, Carolinas HealthCare System has been granted permission from S.C. regulators to build a hospital in Fort Mill, capping a heated, seven-year competition among the three area hospital systems. Carolinas HealthCare also announced a proposal for two new freestanding emergency facilities - Morrocroft and Providence.

Chicago
The near-term demand for health care workers in the Chicago metro area remained flat during Q3. Of note during the quarter, Oak Forest was given approval to become an outpatient clinic with a 24-hour urgent care center, the planned purchase of Holy Cross Hospital by Vanguard Health Systems of Tennessee was called off, and Advocate Health Network announced that it was nearing expansion of its flagship medical center in southwest suburban Oak Lawn with a $202-million building for outpatient care and research.

Cleveland
The near-term demand for health care workers in the Cleveland metro area rebounded during Q3 despite some notable negative news. MetroHealth System announced plans to close its 144-bed skilled nursing facility in Old Brooklyn by the end of year, including a hospital and outpatient clinics and a loss of 450 jobs. On a positive note, University Hospitals announced plans to build a new rehabilitation hospital in Beachwood that will replace the 20-bed Inpatient Rehabilitation Center and add 150 jobs to UH’s work force.

Dallas
The near-term demand for health care workers in the Dallas metro area remained strong during Q3 relative to the rest of the country. Of note, construction is underway on Baylor’s new 113,730-square foot medical office building in McKinney that will be adjacent to the 95-bed Baylor Medical Center, also under construction. Methodist Health is also planning a $135M expansion that will create 250 new permanent jobs.

Denver
The near-term demand for health care workers in the Denver metro area remained steady during Q3. Of note, Kaiser Permanente announced it would add 140 jobs with he opening of its Denver call center this fall, Colorado’s 15 community health centers announced a campaign to add 5,000 more jobs by 2014, and Centura Health accelerated plans for its Castle Rock campus and said it would begin building a 50-bed full-service hospital immediately. On a negative note, Exempla Lutheran announced it would 160 positions, or 6.5% of its workforce.

Denver
The near-term demand for health care workers in the Detroit metro area rebounded solidly during Q3. Of note during the quarter, Henry Ford Health System opened its 32nd medical center in southeast Michigan with Henry Ford Medical Center Commerce in Commerce Township. Oakwood Healthcare Inc., a four-hospital system based in Dearborn, signed a long-term lease for a new headquarters building in Dearborn and will move 650 employees to the 135,000-square-foot, two-building facility. And St. Joseph Mercy Oakland broke ground on a new $129 million patient tower.

Houston
The near-term demand for health care workers in the Houston metro area declined slightly during the third quarter. Of note, the University of Texas Medical Branch (UTMB) announced that it was finally moving forward with a replacement hospital in Galveston, now several tears after Hurricane Ike ravaged the Gulf Coast. On a negative note, HealthSouth Hospital of Houston closed its doors at the end of the quarter, leaving 161 employees out of work.

Kansas City
The near-term demand for health care workers in the Kansas City metro area weakened during the third quarter despite some notable announcements. Of note during the quarter, Olathe Medical Center announced plans to construct a new $19 million critical-care unit and energy center, the University of Kansas Hospital opened its new $85M medical office building, and Carondelet Heart Institute announced plans for a $5.5 million 22,000-sf expansion at Kansas City’s St. Joseph Medical Center. Also of note, Missouri’s 13 community and technical colleges have received a $20 million federal grant to train as many as 4,600 people for careers in health care.

Las Vegas
The near-term demand for health care workers in the Las Vegas area dropped off notably during the third quarter, after a strong previous quarter. Of note, a local non-profit wants to build a clinic center for research and care of children with neuro-genetic disorders.

Los Angeles
The near-term demand for health care workers in the Los Angeles metropolitan area dropped off notably during the third quarter. Of note, Simi Valley Hospital plans to close its transitional care center, terminating the hospital’s license to operate the 44-bed unit. On a positive note, Mission City Community Network opened a clinic to assist low-income and uninsured patients, and Children’s Hospital Los Angeles moved into its new facility.

Miami
The near-term demand for health care workers in Miami strengthened during the third quarter. Of note during the quarter, The Brickell CitiCentre construction project will include medical offices and wellness center. Jupiter Medical Center is joining NuVista Living in planning and developing a senior community. Jupiter Medical Center will work to develop the health care aspects, which are expected to create 150 jobs. The Scripps Research Institute and Tenet Healthcare are collaborating to build a new academic medical center which will create 250-300 health care jobs. Molina Healthcare is beginning construction on its first clinic in Florida, Welllington Regional Medical Center started construction on its new tower, Leon Medical Centers is planning an expansion of its Miami center, and Memorial Healthcare has opened a new DiMaggio Children’s Hospital adding 100 clinical and support jobs.

Minneapolis
The near term demand for health care workers in the Minneapolis-St. Paul metropolitan area improved slightly during the third quarter of 2011. Of note during the quarter, Centracare Health System expects to fill 1,000 positions a year, with no previous or expected layoffs. Also, Children’s Hospitals and Clinics of Minnesota opened its new PICU in St. Paul with 12 private patient rooms.

New York City
The near-term demand for health care workers in the New York metropolitan area slipped during the third quarter of 2011 after remaining relatively stable for the previous three quarters. Of note during the quarter, Queen’s Peninsula Hospital in Far Rockaway will close, eliminating approximately 1,000 jobs. Also, more layoffs are possible as the state pushes to reform its Medicaid system, as seen with a large Queens home health agency shutdown.

Orlando
The near-term demand for health care workers in the Orlando metropolitan area held firm during the third quarter. Of note during the quarter, Celebration Health opened its new patient tower adding 62 new beds and a need for additional employees. HealthSouth proposed a new 60 bed rehabilitation hospital that would create and estimate of 200 new jobs. Also, Central Florida needs 36 new hospital beds, and Health Central plans to invest in capital projects, including a new bed tower, ER expansion and a post-acute facility.

Philadelphia
The near-term demand for health care workers in the Tri-state area remained steady during Q3 despite much activity. Of note during the quarter, Health Advocate will continue to add another 30 employees. CHOP has started work on a new ambulatory care center, while PHMC and Congreso de Latinos Unidos received a federal grant to create a nurse-managed health center in North Philadelphia. Nemours/duPont Hospital began on its expansion project in DE to expand and add 6o new beds at the children’s hospital. Lancaster General is looking to move into the region with medical offices and an urgent care center planned for Chester County. Also, Abington Health in Bucks County is planning a small pediatric hospice wing.

Phoenix
The near term demand for health care workers in the Phoenix metropolitan area weakened significantly during the third quarter of 2011 after a very strong Q2 2011, yet it remained inline with much of the rest of the country. Of note, GlobalMed Group plans to hire 40, and NextCare Urgent Care announced plans to hire 150 employees to accommodate expansion. Cardinal Health opened a new imaging research center with 20 available positions for radio-chemists, engineers, and scientists, as well as product development managers, project managers, and regulatory personnel. Adelante Healthcare plans to build a new public health center in and the Mayo Clinic is expanding its medical school to Arizona.

Pittsburgh
The near term demand for health care workers in the Pittsburgh metropolitan area improved during the third quarter of 2011, after a quiet first half of the year. Of note during the quarter, UPMC plans to hire 1,900 in 2012 to meet growth demands within the system. Also, Jefferson Regional Health announced moderate growth, as did Butler Hospital with plans to open a Saxonburg office. Giant Eagle is opening its first in-store clinic in PA. Also, Allegheny General Hospital and Excela Health both anticipate a need for services and announced expansion plans in neurosurgical ICU and cardiology and bariatric services respectively.

Portland
The near term demand for health care workers in the Portland metro area remained unchanged during the third quarter with relatively little news. Of note, a new report announces an expected nursing shortage in the next decade with large numbers of aging nurses.

Riverside
The near term demand for health care workers in the Riverside-San Bernadino-Ontario metropolitan area slowed during the third quarter of 2011 after a strong previous three quarters. Of note, San Gorgonio Memorial Hospital is working on an expanded ER department and ICU, which is expected to be completed by Q1 2013. It will add 23 ER exam rooms and 16 ICU rooms, among other additions. Also, Arrowhead Regional Medical Center announced a new family clinic for uninsured and low-income residents.

Sacramento
The near term demand for health care workers in the Sacramento metro area improved more than any other major metro in Q3. Of note, VacaValley Hospital announced renovations and expansion plans to double the hospital’s size. Kaiser Permanente also announced its final expansion plan, a 5-story tower, at its South Sacramento Medical Center. The Fremont-Rideout Cancer Center is beginning its expansion, while Sutter Medical Center is also progressing in its expanded replacement hospital.

San Diego
The near-term demand for health care workers in the San Diego metropolitan area continued to fall during Q3. Of particular note during the quarter were 175 job cuts at Hoag Hospital and 144 job eliminations at St. Josephs Health System. On a positive note, two new cardiovascular centers were announced in La Jolla and the Tri-City Medical Center in Oceanside was approved for medical office expansion.

San Francisco Bay
After healthy growth during Q1 and Q2, the SF Bay area health care labor market weakened somewhat during Q3. Of note, St. Rose Hospital announced a 10% reduction in workforce, while La Clinica, the Dept of Veteran’s Affairs, and Kaiser Permanente San Leandro all announced plans to rebuild and expand.

San Jose
The near-term demand for health care workers in the San Jose area remained quiet during the third quarter of 2011 after a strong first half of the year. Of note, Kaiser Permanente, Redwood City announced that a need to rebuild its facility to comply with state seismic safety requirements.

Seattle
After a strong previous quarter, the demand for health care workers in the Seattle metropolitan area fell off during Q3 of 20101. Of note were a possible 220 job cuts with the closure of Western State Hospital, and the announcement of Swedish Medical Center’s jobs cuts up to 300 people.

St. Louis
The near-term demand for health care workers in the St. Louis metro area remained relatively flat during Q3 despite some slight activity. Of note, Patients First announced its plan to layoff 5% of its staff, with future plans to freeze benefits. Also, a new, rebuilt St. John’s Regional Medical Center will begin construction , and Sisters of Mercy Health Care is planning capital improvements in its facilities over the next decade.

Tampa Bay
The near term demand for health care workers in the Tampa metropolitan area remained steady during the 3nd quarter of 2011. Of particular note during the quarter, St. Joseph’s Women’s Hospital opened its new expanded NICU.

Washington D.C.
The near-term demand for health care workers in the D.C. metro area declined slightly during Q3 during a relatively quiet quarter. Of note, St. Inova Health System plans to cut more than 600 workers as they outsource major services.

Table of Contents