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Executive Summary

Q4 HWS Labor Market Pulse® Index

LMPI Composite Index (historical)

January 2011

HWS is pleased to announce the release of Q4 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.

2010 Fourth Quarter LMPI Highlights

  • After a relatively strong first half of the year, the strength of the national health care labor market remained flat across a number of major metropolitan areas in the fourth quarter as measured by the HWS Labor Market Pulse Index® (LMPI), a leading indicator of near term demand.
  • For the fourth quarter of 2010, the near-term demand for health care workers was strongest in the Tampa-St. Petersburg-Clearwater, Riverside-San Bernardino-Ontario, and Phoenix-Mesa-Scottsdale metropolitan areas.
  • Of the 30 major markets tracked by the HWS Labor Market Pulse Index® (LMPI), the weakest areas for the quarter included the San Jose-Sunnyvale-Santa Clara, Chicago-Naperville-Joliet, and San Francisco-Oakland-Fremont metropolitan areas.
  • The LMPI composite index, a representative basket of the 30 largest markets, posted a 3% decline in the fourth quarter of 2010 from the 3rd quarter of 2010, after a 13% decline the prior quarter.
  • For the 4th quarter ended 12/31/10, 14 markets of the 30 tracked by the LMPI showed signs of accelerated expansion (vs. 10 in the prior quarter).


2010 Select Market Fourth Quarter Highlights

Atlanta
The near term demand for health care workers in the Atlanta metropolitan area continued to fall during Q4. Of particular note during the quarter were notable cuts at Gwinnett and Piedmont Hospitals. On a positive note, Piedmont Hospital also announced that it would invest approximately $15 million in an expansion that will boost inpatient bed capacity, adding nearly 50 beds. Emory Eastside Medical Center also plans to invest $80 million in an expansion that could create 300 jobs and boost the Gwinnett hospital’s inpatient bed capacity by nearly a third.

Baltimore
The near term demand for health care workers in the Baltimore metro area held steady and strong during Q4. Of particular note during the quarter: Kaiser Permanente of the Mid-Atlantic States announced plans to build a 200,000-square-foot medical center in Baltimore County that house a surgical facility, physicians offices and other outpatient services and serve about 60,000 members in its first year, and Baltimore’s Mercy Medical Center opened a new $417 million 700,000-square-foot downtown tower that includes 259 private inpatient rooms and 15 operating rooms.

Boston
As with a number of major metropolitan areas during Q4, the near term demand for health care workers in Boston weakened somewhat. Of note, UMass Memorial announced plans in October to eliminate 350 jobs or 2.6% of its workforce. Also of note during the quarter, the 24-bed detoxification facility at Tewksbury Hospital closed and Mercy Medical Center in Springfield eliminated its four-person cardiac rehab program.

Charlotte
The near term demand for health care workers in the Charlotte metropolitan area weakened during Q4. Of note, Dorothea Dix, the state’s oldest mental facility, appeared likely to close. On a positive note, CaroMont Health’s application to construct a $24.2 million freestanding-emergency department in Mount Holly was upheld by state regulators, and Carolinas HealthCare System announced that work is to begin on an $8.8 million freestanding-emergency department in Huntersville.

Chicago
The near term demand for health care workers in the Chicago metropolitan area slipped during the fourth quarter of 2010 after remaining relatively stable for much of the year. Of note during the quarter, an analysis released by the nurses union predicted that the Cook County health system’s 2011 budget would lead to 1000 job cuts including 114 nurses and 19 doctors to help close a $487M budget gap.

Cleveland
Despite an announcement in November by the Cleveland Clinic of a 200-person layoff, the near term demand for health care workers in the Cleveland area improved slightly during Q4 2010. Of note, Hillcrest Hospital in Mayfield Heights completed its $163 million renovation and addition in November that includes a new neonatal intensive care unit, nine new operating rooms and additional beds. In addition University Hospital’s Ahuja Medical Center is in the midst of hiring hundreds of new workers in advance of the new hospital opening in early 2011.

Dallas
The near term demand for health care workers in the Dallas-Fort Worth metro fell slightly in the fourth quarter of 2010. Of note, construction is now complete at Methodist Hospital for Surgery in Addison, a physician-owned facility that is near its opening as of the end of the year. Texas Health Resources also announced plans to expand two of its campuses, adding 125,000 square feet of medical office space as well as a host of other services.

Denver
The near term demand for health care workers in the Denver metro area weakened during Q4 but remained stronger than much of the rest of the country. Of note during the quarter the University of Colorado Hospital in Aurora broke ground on a $20 million expansion of its Anschutz Cancer Pavilion that will add 40,000 square feet to the pavilion and renovate another 11,200 square feet. Separately, UCH plans to break ground early next year on a $400 million expansion that includes a 12-story tower and 144 additional beds. Also of note St. Anthony North Hospital officially opened its new Wound Healing Center and Exempla Lutheran Medical Center opened two more floors of its new hospital wing.

Detroit
The near term demand for health care workers in the Detroit metropolitan area continued to slow during the fourth quarter of 2010 after a strong first half of the year. Of note, Beaumont Hospital eliminated approximately 60 managerial and administrator positions since the fall and also announced plans to cut an unspecified number of staff employees. Doctors’ Hospital of Michigan also alerted its 708 employees of possible layoffs or restructuring.

Houston
The near term demand for health care workers in the Houston metropolitan area remained steady during the fourth quarter. Of note, St, Luke’s opened a new 106-bed facility at The Vintage, Clear Lake Regional Medical Center announced plans for a $92-million expansion and renovation project beginning next summer, and Texas Childrens opened a new neurological research institute.

Kansas City
The near term demand for health care workers in the Kansas City metropolitan area remained solid during the fourth quarter of 2010. While many expansion projects remain delayed due to the economy, Children’s Mercy East is set to break ground in April, while the Children’s Mercy South renovations, which include the addition of 6 exam rooms, are expected to be finished in February, while the Children’s Mercy Clinics project is expected to be completed in March.

Las Vegas
The near term demand for health care workers in the Las Vegas area remained volatile in the fourth quarter of 2010 despite a lack of substantive news. Of note, the Summerlin Hospital Medical Center is set to expand a 10-room surgery wing that specializes in minimally invasive laparoscopic operations.

Los Angeles
The near term demand for health care workers in the Los Angeles metro area strengthened during Q4. Of note during the quarter was a dramatic drop in emergency room overcrowding at Los Angeles County-University of Southern California Medical Center. The Jacobs Engineering Group also received a $365 million contract from the Los Angeles County Department of Public Works to provide construction management services for the renovation of Martin Luther King Jr. Medical Center, which will include a renovation of the hospital’s inpatient tower, expected to be completed in early 2013.

Miami
The near term demand for health care workers in the Miami-Ft. Lauderdale area fell during Q4 but remained strong relative to much of the rest of the country. Of note, Miami Valley Hospital South announced the launch of a $51 million expansion that will nearly double its size by late 2012 and create up to 200 new jobs. Jupiter Medical Center is also nearly halfway toward its goal of raising $50 million to fuel a major expansion of its campus that will add 45 beds.

Minneapolis
The near term demand for health care workers in the Minneapolis-St. Paul metropolitan area improved slightly during the fourth quarter of 2010. Of note during the quarter,
Children’s Hospitals and Clinics of Minnesota completed a multi-million dollar expansion, part of a $300 million redevelopment plan that includes the expansion of Children’s St. Paul hospital. The hospital’s expansion included a larger emergency department, private patient rooms, and new surgery and cardiovascular centers. Also of note, St. Paul Heart Clinic announced plans to shut down early in 2011.

New York City
After a dismal year the New York metropolitan area health care labor market improved during Q4 despite some warning signs of continued rough seas ahead. Of note during the quarter, Bergen Regional Medical Center announced plans to cut 50, Shore Memorial announced plans to lay off 52, and St. Barnabas announced possible layoffs later this year of over 600. On a positive note, Queens Hospital unveiled 40 new beds in December that will help alleviate overcrowding in the borough where the closure of three hospitals has left existing facilities scrambling to meet the need for care.

Orlando
The near term demand for health care workers in the Orlando metropolitan area continued to slip in Q4 despite some bright spots. Of note, Orlando Health, the University of Florida and Shands HealthCare announced plans in October to collaborate on joint clinical programs, expanding training opportunities for doctors and research. Osceola Regional Medical Center in Kissimmee also announced that it is moving forward with plans for a $50 million, 64-bed tower, expected to create more than 120 new nursing and clinical jobs. Nurses at two Central Florida hospitals owned by Nashville-based HCA Inc. also voted to unionize in November.

Philadelphia
The near term demand for health care workers in the Philadelphia metropolitan area improved slightly during the fourth quarter amidst a lot of activity. Of particular note were announced layoffs at Main Line Health (98), UnitedHealth Group (115) and Mercy Suburban (12). On a positive note, Holy Redeemer opened a new $1.5 women’s health center at Southampton, St. Christopher’s Hospital for Children opened a multispecialty pediatric practice in Yardley and expanded and renovated its ED in North Philadelphia, and Lankenau Hospital prepared to renovate and refurbish its existing facility and build a new 96-bed patient-care pavilion.

Phoenix
The near term demand for health care workers in the Phoenix metropolitan area continued to improve during the fourth quarter of 2010 despite some layoffs. Of note Southeastern Arizona Behavioral Health Services laid off 140 as part of a downsizing and Carondelet Health Network eliminated 47 positions. On a positive note, Phoenix Childrens opened a new 11-story tower that increase bed size to 634 from 345 and Scottsdale Healthcare Shea Medical Center opened an eight-bed pediatric intensive care unit.

Pittsburgh
The near term demand for health care workers in the Pittsburgh metropolitan area fell during the fourth quarter behind notable layoffs at West Penn Allegheny Health System, which announced cuts of 400 in October including some physicians and other clinical staff. On a positive note, Jameson Hospital is scheduled to break ground early this year on an $18 million project that includes an expanded emergency room. The two-story addition will range between 35,000 and 40,000 square feet and nearly double the size of the existing emergency department, from 18 to 30 exam rooms.

Portland
The near term demand for health care workers in the Portland metro area improved during the fourth quarter despite relatively little news. Of note, PeaceHealth announced plans to move about 100 jobs from Lane County to Vancouver, WA where the organization is consolidating many of its back office functions.

Riverside
The near term demand for health care workers in the Riverside-San Bernardino-Ontario metro area improved more than any other major metro in Q4. Of note, the Loma Linda University Medical Center in Murrieta, in its homestretch of construction, will soon add 106 beds to southwest Riverside County, and the planned expansion and upgrade of San Gorgonio Memorial Hospital in Banning continues with construction of a new intensive care unit and emergency department that will add 16 intensive care beds and 24 ED beds.

Sacramento
The near term demand for health care workers in Sacramento improved during Q4 of 2010 despite an announcement by Sutter Medical Center that it would be cutting 68 positions in January. Of note during the quarter, the VA announced plans to build a $5 million 16-bed psychiatric hospital, the Sutter Health board of directors approved a plan for construction of a $10.8 million surgery center and infrastructure work to prepare for a new 68-bed hospital, and Heritage Oaks opened an outpatient and mental health day treatment center in Roseville.

San Diego
The near term demand for health care workers in the San Diego metropolitan area improved notably during Q4. Among the news of the quarter: Camp Pendleton broke ground on a new 500,000 square foot hospital that will include at least 54 inpatient beds, Vista Community Clinic announced plans for a $21 million expansion that will include 24 patient rooms and create 42 new jobs, and the emergency department at Sharp Chula Vista is undergoing a $12 million expansion that will more than double its capacity from 20 to 48.

San Francisco Bay
The near-term demand for health care workers in the SF Bay area continued to fall during the first quarter of 2010 after a strong first half of the year. Among notable job cuts either announced or conducted during the quarter were layoffs at Mills Peninsula (219) and Seton Medical Center (55). On a positive note, John Muir Medical Center opened up its new inpatient tower as part of a plan that will add 120 private rooms, a new cardiovascular institute, and an expanded emergency department. Also, Mills Peninsula announced plans to move and grow its behavioral health program and Alta Bates Summit will soon break ground on an 11-story, $350 million inpatient pavilion.

San Jose
The near term demand for health care workers in the San Jose metropolitan area weakened during the fourth quarter of 2010 behind several notable layoff announcements. Of note, O’Connor Hospital announced cuts of 120 by February and Palo Alto Medical Foundation announced plans to lay off 53 in December and January.

Seattle
The near term demand for health care workers in the Seattle metropolitan area weakened during the fourth quarter of 2010. Of note during the quarter, budgetary woes continued at Kitsap County Health District with the announcement of 16% cuts across the board in early 2011. Additional staff will be asked to cut back hours.

St. Louis
The near term demand for health care workers in the St. Louis metropolitan area remained relatively flat during the fourth quarter. Of note, St. Luke’s opened a new $1.5M urgent care and medical office center, CenterPointe Hospital announced plans to break ground on a $12 million expansion that will lead to 100 new jobs, and Shriners Hospital for Children once again delayed its plan to build a new hospital at Washington University due to economic concerns.

Tampa Bay
The near term demand for health care workers in the Tampa metropolitan area rebounded significantly during the fourth quarter of 2010 after two consecutive drops. Of note during the quarter: Tampa General Hospital opened the first phase of its new Jennifer Leigh Muma neonatal intensive care unit, which will house 82 single-patient rooms, and a 12-bed assessment transition area. Edward White Hospital opened a 30-bed skilled nursing unit. And Mease Dunedin Hospital completed a new ambulatory care unit which includes 14 new private patient recovery rooms and three examination rooms. Oak Hill Hospital also began a $50 million, 100,000-square-foot construction project, which will add eight operating rooms and a two-story inpatient bed tower with 36 private rooms.

Washington D.C.
The near term demand for health care workers in the DC metro area improved during the last quarter of 2010. Of note, Inova announced plans to add potentially 200 primary care doctors to its in-house physicians group. United Medical Center, which nearly collapsed under private ownership and is now trying to stabilize itself under public control, is also seeking approval from District health regulators to add 40 general-purpose beds to its current 194-bed arrangement.

   

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