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Pittsburgh, PA

Pittsburgh, PA
Q4 2010 - Market Summary

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.

On a comparative basis, the Pittsburgh health care labor market weakened during the quarter as measured by its Q4 LMPI score of 43.4, down 12% from the prior quarter, and compared to the national composite of 49.8.

Q4 Workforce Announcements

Mass layoffs continue to hit hospitals hard. December 16, 2010
 West Penn Allegheny Health System, based in Pittsburgh, announced Oct. 29 that 400 employees, including some physicians and other clinical staff, would be laid off by the end of the year.
http://www.ama-assn.org/amednews/2010/12/13/bisf1216.htm

New center opens at Allegheny General. December 15, 2010
 Allegheny General Hospital has opened the Gastroparesis Center to complement the North Side hospital’s digestive disease program.
http://www.bizjournals.com/pittsburgh/news/2010/12/15/...

400 will lost jobs at West Penn Allegheny. October 29, 2010
 Four hundred workers at West Penn Allegheny Health System will lose their jobs as part of an ongoing restructuring plan, the financially strapped hospital network said. The layoffs will begin in January, when administrators begin a long-planned consolidation that will relocate key services to Allegheny General Hospital on the North Side from money-losing West Penn Hospital in Bloomfield. The bulk of the lost jobs - 352 - involve positions at West Penn, which is shutting its emergency department Dec. 31.
http://www.pittsburghlive.com/x/pittsburghtrib/news/pittsburgh...

Jameson Hospital in Lawrence County to begin $18M addition in early 2011. October 11, 2010
 Jameson Hospital is scheduled to break ground early next 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. The hospital is growing its own talent by planning to hire up to 20 physicians over the next five years - a dozen primary care specialists and eight surgical subspecialists.
http://www.bizjournals.com/pittsburgh/stories/2010/10/11/story8.html

Previous market news

Hospitals and Health Systems

Source: US News & World Report

Education Program Expansions and Closures

No notable education program expansions and closures announced during Q4 2010.

Education Programs

Source: The Integrated Postsecondary Education Data System

Health of the Local Economy

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 Pittsburgh, PA market.

Source: www.census.gov accessed 1/5/2011
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 Pittsburgh, PA market.

Source: www.bls.gov accessed 1/5/2011

Additional Factors Influencing HWS Labor Market PulseTM Index

  • U.S. Census Bureau Population 2,351,192, #22 largest market
  • U.S. Census Bureau Population #17 oldest market
  • U.S. Census Bureau Population Growth -3.3%, #346 fastest growing market
   

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