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July 2, 2007
Jessica Dietl of St. Cloud isn't a nurse or a doctor, but when she was looking for a job, she chose the health care industry.
"I really enjoy it," she said. "It's a lot of different people and diversity, and I know I am here to help someone."
Dietl joined St. Cloud Hospital as an administrative assistant in February. She had worked in health care in the past before more recently working at the College of St. Scholastica.
Dietl is among the 288 new employees who joined the hospital staff in the past year and are part of the area's rapidly growing health care sector.
The sector has become a driving force for local employment growth.
Health jobs accounted for more than half of the almost 1,800 jobs added last year in Stearns, Benton, Sherburne and Wright counties, and 30 percent of the additional $58.3 million in wages during the fourth quarter came from the health sector, based on data from the quarterly Census report.
"It has been one of the major engines in the area," said King Banaian, who analyzed the data. He is chairman of the economics department at St. Cloud State University.
The health sector now represents about 14 percent of all area jobs, Banaian said. That surpasses the Twin Cities' share of 12 percent. Only the Rochester area's tally of about 23 percent exceeds the region.
The addition of new health organizations in the area has helped boost employment. The health industry posted the largest growth of new St. Cloud firms for the year ending in September with the addition of 26 organizations that brought 194 workers, Banaian said. The number of St. Cloud firms fell by 19 during the same period.
Those jobs often come with a bigger paycheck than many other jobs. The average wage at St. Cloud Hospital is about $24 an hour and almost $22 an hour across the CentraCare Health System, said David Waage, director of employment. The median wage of health practitioners and technical health jobs is more than $27 an hour, according to the Minnesota Department of Employment and Economic Development. Health care support staff earn $11.17 an hour.
Without the health sector's rapid growth, the area's economy would not be performing as well as it has. Banaian estimates it could reduce overall job growth by about a quarter percentage point. That would put the St. Cloud area below a 2 percent increase in May.
"That's a pretty substantial change," he said.
Growing population
Economists and health leaders point to a growing and aging area population as well as a demand for better health care.
"We're really strengthening that regional hospital reputation," said Teresa Bohnen, president of the St. Cloud Area Chamber of Commerce and a member of the hospital's board. "When people think, 'I think I need this kind of surgery' or 'I have cancer and need treatment,' they come in and do it at CentraCare Health Plaza instead of going to the Twin Cities for that care."
St. Cloud Hospital is part of CentraCare Health System, the area's largest employer with about 6,200 employees. CentraCare staff grew by 272 people in the fiscal year ending June 30, 2006, up 4.9 percent from a year earlier. The majority of that growth came from the hospital as it added 212 employees that year.
The hospital expects to add 298 jobs during the fiscal year that started Sunday.
"Everything is based on demand," Waage said.
The hospital's average daily census grew 4 percent to 288 inpatients last year.
A growing number of patients led HealthPartners Central Minnesota Clinics last year to add nine providers, including physicians, nurse practitioners and physician assistants, said Karen Hoeschen, human resources manager. Those hires also brought added patient care and support staff.
"We're seeing a lot of our growth mainly in care delivery services," Hoeschen said.
The number of full-time equivalents at HealthPartners grew 8.3 percent to 118 in 2006 from a year earlier and now has reached 135.
HealthPartners had 500 more patient visits during the first quarter of this year than during the same period a year ago, she said.
More services
HealthPartners' expanded services, including its sleep center and HealthStations at area Coborn's stores, also have helped boost staff, Hoeschen said. HealthPartners plans to open one of its walk-in clinics in the Coborn's Superstore in Sartell this fall. That location will have four employees.
Growth along the dual highway corridors between St. Cloud and the Minneapolis-St. Paul area also may be contributing to the growth.
Residents in some northwestern Twin Cities suburbs and growth communities such as St. Michael and Albertville are beginning to see St. Cloud Hospital as an accessible option with shorter waits, Banaian said.
Jobs at nursing homes and other care facilities are not driving the recent growth in the health sector, but they are expected to as the baby boom generation continues to age. Those jobs grew by 159 to about 4,700 last year, according to the quarterly census.
Better stability
Employment leadership in the health sector will bring more stability to the area. As the share of health jobs continues to grow, the region will become less susceptible to economic swings caused by seasonal changes in manufacturing and construction.
"The demand for health care really does not change during a recession," Banaian said.
Patients may forego some elective treatments, but most people continue receiving care.
The hospital had 10 percent employment growth around 2000 until the closure of Fingerhut, Waage said.
Then, the hospital had minimal employment growth and saw a decline from 2003-2004. Waage said the lack of health insurance by former Fingerhut workers and mild winters led to slowed growth.
While the growth in the health sector is beneficial to the area economy, Bohnen said it cannot take the place of manufacturing and other major industries.
"It concerns me because medical care is a service, and it's not a product," Bohnen said. "We're not exporting it out of here."
Moving forward
An aging baby boom population — the nation's largest generation — will continue to demand more health care workers. Shortages of workers such as nurses are expected within the next 10 years.
"The bigger concern is to how to keep enough workers here to serve our need because they're already feeling the crunch," Bohnen said.
New technology such as robotics and a push for future productivity gains are expected to slow health employment growth in the future.
"We're going to have to provide better health care with fewer people," Banaian said.
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