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Atlanta-Sandy Springs-Marietta, GA




Atlanta-Sandy Springs-Marietta, GA
Q3 2011 – Market Summary

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.

On a comparative basis, the strength of the Atlanta health care labor market as measured by its Q3 LMPI score, improved by 31% to 51.0, compared to the national composite of 48.0, down 3% from the prior quarter.



Q3 Workforce Announcements

Shepherd Center seeks OK for $5M expansion. September 23, 2011
Shepherd Center, an Atlanta spinal cord and brain injury rehabilitation hospital, is expanding its 132-bed facility to increase the number of private rooms for its spinal cord injury patient population. The $5.5 million project, scheduled to begin in late November, will include a renovation of the third floor of the Shepherd Building, and the addition of 20 private and four semi-private rooms. The project will also include a human spinal cord injury research lab.
http://www.bizjournals.com/atlanta/print-edition/2011/09/23/shepherd-center-seeks-ok-for-5m.html

Piedmont Healthcare to expand ER in Jasper. September 16, 2011
Piedmont Healthcare plans to invest nearly $10.5 million in an ER expansion and renovation at its satellite hospital in Jasper. The investment will include adding six exam rooms in the Piedmont Mountainside Hospital (PMH) emergency department, and adding four pre-op rooms and eight recovery rooms within the surgery department. The project, scheduled to be completed in summer 2013.
http://www.bizjournals.com/atlanta/print-edition/2011/09/16/piedmont-healthcare-to-expand-er-in.html

Columbus’ St. Francis Hospital begins $110M expansion. September 2011
St. Francis Hospital in Columbus, Ga., will finally break ground on its $110 million expansion, reports the Columbus Ledger-Enquirer. The hospital received the OK for the project two years ago. The expansion will add 230 private rooms, among other improvements. The hospital currently has 75 private and 110 semi-private rooms. The project will include a women’s health center and seven more operating rooms.
http://www.bizjournals.com/atlanta/morning_call/2011/09/columbus-st-francis-hospital-begins.html

Piedmont to invest $60M in Henry Medical Center; get operating control. August 24, 2011
Piedmont Healthcare plans to invest about $60 million in capital improvements at financially hobbled Henry Medical Center . In return, Piedmont gets operating control of the south metro community hospital.
For Henry Medical, the deal gives the hospital expanded medical services, a capital infusion and greater economies of scale to compete in a market dominated by multi-hospital health systems. The 215-bed Stockbridge, Ga. hospital is hemorrhaging financially — it reported a roughly $10 million operating loss in fiscal 2010. In return, Piedmont gets a feeder hospital in a growing suburban market from which it already draws patients. About 10.5 percent of Henry County residents needing inpatient care in fiscal 2010 sought it at Piedmont hospitals.
Piedmont Healthcare, which operates four hospitals, expects to open a $162 million replacement hospital in Newnan, Ga. On April 15, Atlanta Business Chronicle first reported Piedmont is planning $60 million in cost cuts, including at least 300 layoffs, as it braces for reimbursement cuts and greater uncompensated care.
http://www.bizjournals.com/atlanta/news/2011/08/24/piedmont-to-invest-60m-in-henry.html

WellStar to put $25M into Kennestone facility. August 12, 2011
WellStar Health System Inc. plans to invest $25 million as it renovates its flagship Kennestone hospital. One of WellStar’s key goals is the conversion of existing semi-private rooms into private rooms. WellStar plans to convert 48 semi-private rooms to private rooms, and then add space to house the 48 displaced beds, he said. The renovation is anticipated to be completed in early 2013.
New surgery center
North Atlanta Surgical Associates has opened a $1.2 million outpatient general surgery center. The nearly 7,800-square-foot center, part of a medical office building includes two operating rooms, one minor procedure room, three pre-op bays, and six recovery room bays. The 24-surgeon practice anticipates doing about 1,400 surgeries at the new center.
http://www.bizjournals.com/atlanta/print-edition/2011/08/12/wellstar-to-put-25m-into-kennestone.html

Medical building planned downtown. July 15, 2011
A more than $17.5 million medical office development is being planned in Downtown Atlanta, according to a building permit filed with the city of Atlanta. The migration of health care out of expensive hospital settings into inexpensive and more convenient outpatient settings is driving the growth of medical office buildings. Several major hospital systems, including WellStar Health System and Children’s Healthcare of Atlanta, have announced, or recently completed, such facilities.
http://www.bizjournals.com/atlanta/news/2011/07/15/medical-building-planned-downtown.html

WellStar plans $125M Hiram hospital. July 13, 2011
WellStar Health System Inc. plans to build a $125 million replacement hospital in Hiram to keep pace with population growth. The proposed hospital, which will open with 56 beds and have capacity for 112 beds, will serve as a community hospital, feeding complex cases to flagship WellStar Kennestone Hospital and WellStar Cobb Hospital. The hospital, which will employ more than 300, will include 30 emergency exam rooms, 10 pediatric emergency exam rooms and more than six surgery suites. Building on the replacement hospital is expected to start August 2012, with the initial phase scheduled to open in April 2014.
http://www.bizjournals.com/atlanta/news/2011/07/13/wellstar-plans-125m-hiram-hospital.html

Emory adding precision radiation treatment. July 8, 2011
Northside Hospital plans to add 13 inpatient beds at its Forsyth hospital - a move that would boost inpatient bed capacity by about 7 percent. The expansion is needed because of increased demand from a fast-growing senior population, who tend to have higher lengths of stay. To deal with increased demand, Northside plans to add nearly 70 employees, including nurses and other health professionals.
http://www.bizjournals.com/atlanta/print-edition/2011/07/08/emory-adding-precision-radiation.html

Previous market news

Hospitals and Health Systems


Source: US News & World Report

Education Program Expansion and Closures

$165M expansion set for Morehouse med school. July 22, 2011
Morehouse School of Medicine plans to invest $165 million in a campus expansion aimed at boosting Georgia’s physician supply and bolstering the downtown institution’s research reputation.
The decade-long investment, which will include at least 200,000 square feet of new construction, is expected to more than double annual student enrollment to 200, by 2020. Morehouse School of Medicine (MSM), founded in 1975, is the first medical school established at a historically black college and university in the 20th century. Morehouse is located in the working-class West End area, south of downtown Atlanta.
http://www.bizjournals.com/atlanta/print-edition/2011/07/22/165m-expansion-set-for-morehouse-med.html

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 Atlanta-Sandy Springs-Marietta, GA market.


Source: http://www2.standardandpoors.com accessed 10/10/2011

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 Atlanta-Sandy Springs-Marietta, GA market.

Source: www.census.gov accessed 10/10/2011

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 Atlanta-Sandy Springs-Marietta, GA market.


Source: www.bls.gov accessed 10/10/2011

Additional Factors Influencing HWS Labor Market PulseTM Index

  • U.S. Census Bureau Population 5,376,285, #8 largest market
  • U.S Census Bureau Population 286th oldest market
  • U.S. Census Bureau Population Growth 26.6%, #20 fastest growing market


   

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