New York-Northern New Jersey–Long Island, NY
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.
On a comparative basis, the strength of the New York health care labor market as measured by its Q4 LMPI score dropped to 39.4 from 45.8 the prior quarter, and remained weaker than much of the rest of the country as measured by the LMPI composite index of 48.0 for the quarter.
Q3 Workforce Announcements
Trouble on the home (health care) front. September 30, 2011
Sudden shutdown of a big Queens home health care agency suggests more closings will come as state’s push to reform Medicaid system shakes up entire industry.
The Queens agency, a subsidiary of HANAC, a Manhattan nonprofit social services organization, said looming state Medicaid reimbursement changes, which will force agencies to shift from getting paid on a fee-for-service basis to a managed-care system, were to blame. The new system “was not fiscally viable for us,” a HANAC spokeswoman said. The agency employs nearly 2,000 workers, most of them members of 1199-Service Employees International Union.
http://www.crainsnewyork.com/article/20110930/...
Queens’ Peninsula Hospital to shutter. July 25, 2011
The Far Rockaway, Queens, hospital will close after owing millions to vendors and falling behind on its union benefits funds payments. Closure would mean losing about 1,000 jobs.
http://www.crainsnewyork.com/article/20110725/...
Hospitals and Health Systems
Source: US News & World Report
Education Program Expansion and Closures
No notable education program expansions or closures announced during Q3 2011.
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 New York-Northern NJ-Long Island, NY 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 New York-Northern NJ-Long Island, NY 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 New York-Northern NJ-Long Island, NY market.
Source: www.bls.gov accessed 10/10/2011
Additional Factors Influencing HWS Labor Market PulseTM Index
- U.S. Census Bureau Population 19,006,798, #1 largest market
- U.S. Census Bureau Population #137 oldest market
- U.S. Census Bureau Population Growth 3.7%, #248 fastest growing market
- Executive Summary
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