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Sacramento-Arden-Arcade-Roseville, CA

Sacramento-Arden-Arcade-Roseville, CA
Q4 2010 - Market Summary



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.

On a comparative basis, the Sacramento health care labor market strengthened during Q4 as measured by its Q4 LMPI score of 47.4, up 14% from the prior quarter and only slightly lower than the national composite of 49.8.

Q4 Workforce Announcements



Sutter Medical Center to cut 68 positions next month. December 10, 2010
 Sutter Medical Center Sacramento will eliminate 68 positions early next month and cut hours of 15 employees as it struggles with declining volume, more uncompensated care - and concern about changes coming with health care reform.
http://www.bizjournals.com/sacramento/print-edition/2010/12/10/sutter-medical-center-to-cut-68.html

VA to build psychiatric hospital at Mather to meet rising demand. December 3, 2010
 The Department of Veterans Affairs is beefing up inpatient mental health services for veterans at Mather Field in Sacramento. The VA opened a 10-bed locked psychiatric ward at its Mather hospital in March 2009. Now, it plans to build a $5 million, free-standing psychiatric hospital with 16 beds to meet increasing demand from veterans.
http://www.bizjournals.com/sacramento/print-edition/2010/12/03/va-to-build-psychiatric-hospital-at.html

Sutter set to build in Elk Grove. November 19, 2010
 The Sutter Health board of directors, banking on continued growth in demand for health care services in Elk Grove, has approved $10.8 million for the construction of a surgery center and infrastructure work to prepare for a 68-bed hospital.
http://www.bizjournals.com/sacramento/print-edition/2010/11/19/sutter-set-to-build-in-elk-grove.html

Heritage Oaks opens Roseville outpatient center. November 19, 2010
 Heritage Oaks Hospital has opened an outpatient and day treatment center in Roseville to meet growing demand for mental health services in the Sacramento region. Heritage Oaks is adding the equivalent of seven additional full time staff to work in Roseville, including a regular attending physician, program director, program manager, nurse, technicians and others.
http://www.bizjournals.com/sacramento/print-edition/2010/11/19/heritage-oaks-opens-roseville.html

MDSTAT opens 3rd center since ‘08. November 12, 2010
 MDSTAT Urgent Care opened its third clinic in the Sacramento area last month. The company has about 65 employees, including doctors who rotate from clinic to clinic as needed, medical assistants, clerical staff and others. Each center has its own manager. One or two more clinics are expected to open by July.
http://www.bizjournals.com/sacramento/print-edition/2010/11/12/mdstat-opens-3rd-center-since-08.html

Sutter Health adds staff after high-profile split. October 17, 2010
 Sutter Health has recruited 20 radiologists following a high-profile split with its longtime radiology partner in Sacramento, RAS.
http://www.bizjournals.com/sacramento/stories/2010/10/18/story4.html


Previous market news

Hospitals and Health Systems

Source: US News & World Report

Education Program Expansions and Closures

Study: Nursing students have trouble finding jobs. November 24, 2010
A whopping 43 percent of nurses who graduated from school between March 2009 and March 2010 were unable to land a job in registered nursing, a new survey by the California Institute for Nursing and Health Care shows.
http://www.bizjournals.com/sacramento/news/2010/11/24/study-nursing-students-have-trouble.html

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 Sacramento-Arden-Arcade-Roseville, CA 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 Sacramento-Arden-Arcade-Roseville, CA market.

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

Additional Factors Influencing HWS Labor Market PulseTM Index

  • U.S. Census Bureau Population 2,109,832, #25 largest market
  • U.S. Census Bureau Population #191 oldest market
  • U.S. Census Bureau Population Growth 17.4%, #53 fastest growing market


   

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