Health industry fares well despite economy

While the country struggles with a 9.6 percent unemployment rate, reports show health care facilities in Indiana have not taken the same hit.

In fact, employment in both education and health care has increased in Indiana.
Indiana employment in education and health care is up 5.3 percent from three years ago, according to the U.S. Bureau of Labor Statistics. Indiana’s overall labor market has declined 8.7 percent in the same amount of time.

“We haven’t had any staff cuts and don’t expect to,” said Bloomington Hospital spokeswoman Amanda Roach.

Kimberly Ripley, a Bloomington Hospital health care recruiter, said their recruiting process hasn’t slowed at all.

She said the hospital continues to recruit through classroom visits to colleges and other traditional forms of advertising.

Ripley said the recruiters are constantly trying to fill pharmacist and physical therapist positions which are still in high demand.

“We think we can fill them,” Ripley said.

But cuts at other hospitals might need to be more dramatic.

For example, financial reports with the Indiana State Department of Health revealed St. Margaret Mercy Healthcare Centers North Campus in Hammond, Ind., which is part of St. Francis Hospital and Health Centers, faced a shortfall of about $11 million in 2009.

Joe Stuteville, media relations manager for St. Francis Hospital & Health Centers, said their system has always been fiscally conservative and is constantly evaluating ways to run more efficiently.

“Not to say that there haven’t been some factors in the last few years that have made us look at spending,” Stuteville said.

The recession of 2008 made the hospital put a construction project for the Indianapolis branch on hold, he said.

“Fortunately we were able to jumpstart that initiative again,” Stuteville said. “Certainly that was recession-driven.”

Stuteville said though they have been looking at lower spending, their first priority is customer care, and they haven’t had any layoffs.

Marcie Couet, Indiana Hospital Association director of communications, said Indiana hospitals are currently focused on cutting costs per patient.

“Health reform does mean cuts in payments to hospitals from the government,” Couet said. “At the same time, demand for hospital care is growing.”

She said this demand is growing because the Medicare population is increasing. Also, health care reform is expected to increase the number of people with health insurance, which hospitals must be ready to handle, Couet said.

Couet said though government funds will be cut, the increasing demand will support hospital staffs.

“While hospitals are working intently on right sizing their staffs,” Couet said. “Health care will likely be a growing business.”