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San Francisco-Oakland-Fremont, CA

San Francisco-Oakland-Fremont, CA
Q4 2010 - Market Summary



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, 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 its 11-story, $350 million inpatient pavilion.

On a comparative basis, the SF Bay health care labor market underperformed much of the rest of the country during the fourth quarter registering a Q4 LMP score of 40.1 compared to the national composite of 49.8 and down 29% from the prior quarter.

Q4 Workforce Announcements



Health care jobs under the knife. December 17, 2010
Health care hiring, an engine of Bay Area employment growth, has gone into reverse as area hospitals, clinics and other organizations are planning or have carried out roughly 2,300 job cuts. That trend could continue or gain momentum in the new year, as financial pressures on hospitals, doctors and insurers increase.
http://www.bizjournals.com/sanfrancisco/print-edition/2010/12/17/health-care-jobs-under-the-knife.html

Sutter Health OKs building San Carlos clinic, postpones hospital again. December 8, 2010
Sutter Health’s board of directors has OK’d construction of an outpatient clinic and 1,000-space parking structure in San Carlos, as Phase One of a proposed $550 million medical complex, but has refrained once again from moving forward on a planned hospital there.
http://www.bizjournals.com/sanfrancisco/news/2010/12/08/sutter-health-oks-building-san-carlos.html

John Muir Med Center to open new $212M Concord tower. November 15, 2010
John Muir Health is opening its new $212 million inpatient tower in Concord, the first huge step in an $800 million expansion. It includes 120 private rooms, a new Cardiovascular Institute, and an expanded Emergency Department. But the new structure’s top two floors, including 59 patient rooms, won’t immediately be put to use.
http://www.bizjournals.com/sanfrancisco/blog/2010/11/john-muir-med-center-set-to-open-new.html

VA Med Center targets Mission Bay. November 12, 2010
The VA Medical Center wants to relocate from its picturesque but space-constrained home near the Golden Gate to as much as 2 million square feet around Mission Bay. Veterans Administration officials in the last month commissioned a six-month study to look at sites throughout the city that could house the 1,800-employee medical center and research operations.
http://www.bizjournals.com/sanfrancisco/print-edition/2010/11/12/va-med-center-targets-mission-bay.html

Mills-Peninsula to expand mental health services. October 29, 2010
Mills-Peninsula Health Services is moving and expanding its Behavioral Health Program to San Mateo, where it will grow from 40 inpatient beds to 52.
Also, Seton Med Center to close SNF, eliminate 55 jobs
Joining several other local hospitals that are closing or selling non-core units, Daly City’s Seton Medical Center plans to shutter its skilled nursing facility before year-end, potentially eliminating 55 jobs, including 26 RN positions.
http://www.bizjournals.com/sanfrancisco/print-edition/2010/10/29/mills-peninsula-to-expand-mental.html

Alta Bates Summit set to break ground on $350M inpatient pavilion. October 22, 2010
Alta Bates Summit Medical Center plans to break ground on its 11-story, $350 million inpatient pavilion. The new 250,000-square-foot patient tower will include 238 private patient rooms, a new 21,000-square-foot Emergency Department, and a new 1,000-space parking garage.
http://www.bizjournals.com/sanfrancisco/news/2010/10/21/alta-bates-summit-set-to-break-ground.html

UCSF to break ground on hospital this month. October 6, 2010
UC-San Francisco is scheduled to hold a groundbreaking ceremony to kick off construction on its new $1.52 billion, 848,000 square-foot hospital campus in Mission Bay.
http://www.sfexaminer.com/local/ucsf-break-ground-hospital-month
http://www.californiahealthline.org/articles/2010/10/15/california-hospital-news-roundup-for-the-week-of-october-15-2010.aspx

Previous market news

Hospitals and Health Systems

Source: US News & World Report

Education Program Expansion 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

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 San Francisco-Oakland-Fremont, CA market.

Source: http://www2.standardandpoors.com accessed 1/5/2011

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 San Francisco-Oakland-Fremont, 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 San Francisco-Oakland-Fremont, CA market.

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

Additional Factors Influencing HWS Labor Market PulseTM Index

  • U.S. Census Bureau Population 4,274,531, #13 largest market
  • U.S. Census Bureau Population #159 oldest market
  • U.S. Census Bureau Population Growth 3.7%, #249 fastest growing market


   

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