Boston-Cambridge-Quincy, MA-NH
Q4 2011– Market Summary

The near-term demand for health care workers in the Boston metro area improved slightly during the last quarter of 2011. Of note, financing was issued for the Baystate Medical Center’s “Hospital of the Future” project, including a new heart & vascular center with six surgical suites and 32 cardio critical-care rooms.
On a comparative basis, the Boston health care labor market strengthened during Q4. Its Q4 LMPI score of 47.2 was up just 4% from the prior quarter but still slightly below the national composite of 52.9.

Q4 Workforce Announcements

$45M for Springfield’s ‘Hospital of the Future’. November 16, 2011
MassDevelopment has issued $45 million in low-interest, tax-exempt financing for Springfield-based Baystate Medical Center’s $296 million “Hospital of the Future” project.
The first phase of the hospital’s 640,000-square foot expansion project is scheduled for completion in March, including the new Davis Family Heart & Vascular Center as its centerpiece. The Davis center will include six surgical and endovascular suites and 32 cardiovascular critical-care rooms.
http://www.bizjournals.com/boston/blog/mass_roundup/2011…
http://www.masslive.com/news/index.ssf/2011/11/massdev...

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 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 Boston-Cambridge-Quincy, MA-NH market.

Source: http://www2.standardandpoors.com accessed 1/1/2012

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 Boston-Cambridge-Quincy, MA-NH market.

Source: www.census.gov accessed 1/1/2012

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 Boston-Cambridge-Quincy, MA-NH market.

Source: www.bls.gov accessed 1/1/2012

Additional Factors Influencing HWS Labor Market Pulse^TM Index

• U.S. Census Bureau Population 4,522,858, #10 largest market
• U.S Census Bureau Population 119th oldest market
• U.S. Census Bureau Population Growth 3%, #264 fastest growing market