EXECUTIVE SUMMARY Economic Impact of the Healthcare Sector in Seattle The Downtown Seattle Association (DSA) was commissoned by the City of Seattle’s Office of Economic Development to update and expand The Economic Impact of the Healthcare Industry to the City of Seattle (2004). Historically, the healthcare industry has been one of the largest employers in Seattle. Comprised of employers ranging from the city’s major hospitals and biotechnology firms to world-class universities and biomedical research institutes, Seattle’s healthcare sector is very diverse with significant opportunities for cross-collaboration and growth. Together these companies and organizations form a health industry cluster that has a large economic impact on the City of Seattle. In the coming decade, the healthcare sector is predicted to grow nationally given demographic trends. Given effective economic development policies, Seattle is well-positioned to capitalize on this growth and continue being a major medical center. The Downtown Seattle Association has made promoting sector-based job growth in Downtown a major component of its Strategic Plan. The healthcare sector is a key area of focus for DSA. Downtown Seattle has a competitive advantage in the sector and DSA sees strong opportunities for future growth. This report examines the healthcare sector city-wide as well as its concentration in particular neighborhoods in Seattle, namely the First Hill and South Lake Union neighborhoods in Downtown Seattle. This clustering effect is an asset that leads to economic dynamism, greater cross-sector collaborations, and is a draw for related industries. Included is a strategic assessment of the First Hill neighborhood - Seattle’s historical healthcare center. Downtown’s First Hill neighborhood is home to three of the city’s largest hospitals making it the densest in healthcare sector employment city wide. Nearby are also important institutions of higher education that help to train the future healthcare workforce. In order for the healthcare sector to thrive in Seattle, First Hill must remain a major healthcare center for Seattle.
INTRODUCTION Background The healthcare sector is one of the largest and fastest growing economic sectors in the United States. In 2010, healthcare provided 13.7 million jobs, 34 percent of which were in hospitals, 23 percent in nursing and resident care and 34 percent in physician offices.i The U.S. Bureau of Labor Statistics estimates that between 2008 and 2018, the healthcare sector will generate 3.2 million new wage and salary jobs -- more than any other industry.ii Much of this growth will be driven by demographic changes involving a growing elderly population in the United States that will require increasing levels of healthcare. As the economy recovers, 10 of the 20 fastest growing occupations in the United States currently are healthcare related.iii Given the economic challenges that many communities are facing, healthcare is positioned to be an area of strong growth and social stability for local and regional governments and economies. The healthcare sector in the U.S. is growing and Seattle, given its historical strength in this sector, is well-positioned to expand this key industry in the coming decade. Seattle is a major regional medical center and home to the largest concentration of medical personnel in the Pacific Northwest. The healthcare sector is one of the primary employment sectors in the City of Seattle and in Downtown. This report analyzes and summarizes its economic impact on the City of Seattle and its significance to Downtown. The healthcare industry is an incredibly diverse economic sector with a wide range of activities. This industry spans the length of the healthcare chain -- from doctors and medical personnel working in hospitals and clinics to elderly caregiving and biomedical research. It is a significant challenge to isolate the various healthcare related jobs. In addition to traditional healthcare delivery employment, this study also quantifies employment in biotechnology, research and higher education in medicine. Government and the private sector promote and encourage this research through grants and other funding sources. Research and teaching universities are a critical aspect of this sector in Seattle. Increasing collaboration between higher education institutions, local government and the private sector will be key to developing new technologies and training of health delivery personnel in Seattle.
Metropolitan Improvement District’s Business Development & Market Research www.DowntownSeattle.com
2
HEALTHCARE SECTOR JOBS
Figure 1: Cumulative Healthcare Services Employment, 2004-2010
Growth Trends The healthcare sector plays a major role in the City of Seattle’s economy, especially in terms of employment. The healthcare sector is comprised of various industries from traditional healthcare services (i.e. hospitals, nurses, residential care) to cutting edge medical research institutes and biotechnology firms. In 2010, the healthcare services sector directly employed 56,657 workers with an annual payroll of more than $2.9 billion.iv,v When biotechnology firms, medical researchers, and pharmaceutical companies are included as part of the healthcare sector, healthcare employment totals more than 70,000 workers and $3.4 billion in payroll. Those working in the healthcare field also have relatively well-paying jobs that are near the citywide average salary of $58,594.vi Overall, healthcare sector positions are relatively stable and the sector is experiencing positive growth trends. The U.S. Bureau of Labor Statistics estimates that between 2008 and 2018, the healthcare sector will generate 3.2 million new wage and salary jobs in the U.S., more than any other industry.vii Figure 1 illustrates the healthcare sector growth trends at the national, state and local levels. Seattle has had a slower rate of growth for ambulatory healthcare services (i.e. physician offices, dentists, etc.) than the U.S. and Washington State. However, Seattle and the rest of Washington State have been experiencing larger growth in hospital employment.
Ambulatory Health Services 25% 20% 15% 10% 5% 0% 2004
2005
2006
United States
2007
2008
2009
Washington
Seattle
2007
2009
2010
Hospitals 25% 20% 15% 10% 5% 0% 2004
2005
2006
United States
2008
Washington
2010
Seattle
Nursing and Residental Care 25% 20% 15% 10% 5% 0% 2004 -5%
2005
2006
United States
2007
2008
Washington
2009
2010
Seattle
Source: MID/DSA Analysis of PSRC Covered Employment Estimates, 2011 and U.S. BLS Quarterly Census of Employment and Wages, May 2010
3
Metropolitan Improvement District’s Business Development & Market Research www.DowntownSeattle.com
Between 2004 and 2010, Seattle hospital employment grew more than 15 percent with only a slight decline during the recession. Slow growth in the nursing sector, coupled with increasing demand for nurses, has created a shortage of workers in the nursing and residential care fields. Some of this is likely due to discrepancies in terms of compensation within the healthcare sector itself with employment in the nursing and residential care sector having a much lower mean salary.viii Still, employment trends are positive in all three healthcare sector segments.
Figure 2: Seattle Neighborhoods’ Average Share of Healthcare Service Employment, 2004-2010
Broadview
5% Ballard*
University District
Seattle has the largest concentration of healthcare employment in the region. One of every 8 jobs in the City of Seattle is directly related to the healthcare sector. While many Seattle neighborhoods have some healthcare employment, healthcare jobs tend to be geographically concentrated by neighborhoods in the City of Seattle.
Downtown Seattle is home to more than 45 percent of Seattle’s total healthcare sector, and 70 percent of Downtown’s healthcare jobs are located in the First Hill neighborhood. First Hill is home to 3 of Seattle’s largest hospitals: Harborview Medical Center, Swedish Medical Center and Virginia Mason Medical Center. Other neighborhoods with large shares of Seattle’s healthcare sector are Wedgewood/Laurelhurst, Broadview and the University District home to Seattle Children’s, Northwest Hospital and University of Washington Medical Center.
Wedgewood/ Laurelhurst
2%
Seattle’s Healthcare Sector
Figure 2 illustrates the wide difference in the level of healthcare employment across Seattle neighborhoods. The size of the circles indicates the relative size of each neighborhood’s healthcare employment, as well as healthcare workers’ geographic distribution within Seattle.
Northgate
6%
4%
10%
8%
Eastlake
Capitol Hill 4% Downtown 46% 4% Central District 2% West Seattle 2% Rainier Valley/ Columbia City
Source: City of Seattle, 2002 and MID/DSA Analysis of PSRC Covered Employment Estimates, 2011 * Figure does not include Swedish-Ballard employment
Metropolitan Improvement District’s Business Development & Market Research www.DowntownSeattle.com
4
Downtown Healthcare Sector
Figure 3: Healthcare Services Job Density, 2010
The healthcare sector is important to the economic vitality of Downtown Seattle. Home to nearly half of all of Seattle’s healthcare jobs, Downtown is disproportionately affected by healthcare trends, both positive and negative. Within Downtown Seattle, the healthcare sector is concentrated in 3 primary neighborhoods: First Hill, South Lake Union/Denny Triangle and the Central Business District/Retail Core.
Source: City of Seattle, 2002 and MID/DSA Analysis of U.S. Census/BLS On the Map application data
The healthcare sector is a key industry for Downtown Seattle. Downtown Seattle is unique in its high concentration of healthcare sector employment. Downtown Seattle has the highest level of healthcare employment density in Seattle. This is due in large part to being home to 4 of Seattle’s hospitals, as well as major medical research and biotechnology firms (See Figure 3).
Hospital
According to DSA’s 2011 Peer City Review, Downtown Seattle had the largest share of its employment (12 percent) devoted to healthcare among its peer downtowns. Seattle surpassed even Philadelphia, a major healthcare center. Peer cities examined included Charlotte, Denver, Minneapolis, Philadelphia, Portland, San Diego and San Francisco. This illustrates just how dependent Downtown Seattle is on promoting and maintaining a vibrant healthcare sector (See Figure 5 on page 6).ix
Figure 4: Seattle Healthcare Service Sector Employment, 2004-2010 NAICS
Industry
2004
2005
2006
2007
2008
2009
2010
621 622 623
Ambulatory Services Hospitals Nursing/Resident Care
20,272 21,427 7,774
20,771 21,694 7,658
21,119 22,534 7,708
20,637 22,885 7,760
21,056 24,046 7,903
22,233 23,730 8,379
23,095 24,996 8,566
62
Total Healthcare
49,473
50,123
51,361
51,282
53,005
54,342
56,657
Source: PSRC Covered Employment Estimates, 2011 and WSHA, Hospital Fiscal Year-end Reports, 2011
5
Metropolitan Improvement District’s Business Development & Market Research www.DowntownSeattle.com
Figure 5. Peer Downtowns’Average Employment Sector Breakdown, 2004-2010 Source: MID/DSA Analysis of U.S.Census Bureau/BLS. On the Map Application Data, 2011
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
Seattle
Portland
San Francisco
San Diego
Professional, Scientific and Technical Services Public Administration Retail Trade Educational Services Information
Denver
Minneapolis
Charlotte
Philadelphia
Finance and Insurance Healthcare and Social Assistance Accomodations and Food Services Admin and Support, Waste Management Other
Figure 6. Total Available Beds by Seattle Hospital, 2010 Source: WSHA, Hospital Fiscal Year-end Reports, 2011
Hospital Group Health Cooperative – Central Hospital Harborview Medical Center Kindred Hospital Seattle – Northgate Navos Regional Hospital – Respiratory and Complex Care Seattle Cancer Care Alliance Seattle Children’s Swedish Medical Center – Cherry Hill Swedish Medical Center – First Hill/Ballard University of Washington Medical Center UW Medicine/Northwest Hospital Medical Center Virginia Mason Medical Center
Available Beds 14 413 42 40 31 20 250 198 624 392 213 283
Total Downtown Hospitals
1,340
Total Seattle Hospitals
2,520
Metropolitan Improvement District’s Business Development & Market Research www.DowntownSeattle.com
6
Hospitals Often the largest employer in many communities is a hospital. Traditionally, hospitals have been the foundation of the healthcare delivery system. Seattle’s hospitals serve not only Seattle residents, but are major regional and national resources, as well. Seattle hospitals provide treatment to thousands of patients every year from outside the Seattle city limits. In 2010, Seattle was home to 12 different hospitals with several receiving national recognition for excellence in various fields in recent years. Nine hospitals have also been designated as “Major Institutions” by the City of Seattle given their large physical size and total employment.x Figure 6 on page 6 provides a list of the hospitals located in Seattle, as well as the total number of beds available indicating their relative size. The First Hill hospitals alone hold more than half of Seattle’s available hospital beds. Despite the recession, figure 7 shows that Seattle hospitals have continuously been adding jobs with the exception of 2008-2009, which saw a slight decline. Hospitals have been an important area of growth in Seattle’s economy, having grown by 16.7 percent since 2004. Hospitals also have a large indirect economic impact on their surrounding communities. As mentioned earlier, hospitals directly employ thousands in our community, but there are also many jobs in the Puget Sound region and throughout Washington State that are indirectly created because of hospitals. A recent study calculating the impact of community hospitals throughout the United States found that hospitals in Washington State had an employment multiplier of 2.3. This multiplier means that for every 1 hospital job, nearly 2.3 other jobs are created.xi Therefore, Seattle hospitals have an indirect employment effect of more than 57,235 jobs in the state and local economy. Combined, Seattle’s hospitals are responsible for approximately 82,230 jobs.
Figure 7. Total Seattle Hospital Employment (FTE) Source: WSHA, Hospital Fiscal Year-end Reports, 2011 26,000 25,000 24,000 23,000 22,000 21,000 20,000 19,000
7
2004
2005
2006
2007
2008
2009
Metropolitan Improvement District’s Business Development & Market Research www.DowntownSeattle.com
2010
Hospitals’ Socioeconomic Impact A city’s healthcare sector is typically concentrated in its center city neighborhoods. Typically, these central neighborhoods with hospitals have lower median household incomes than other area neighborhoods.xii Downtown Seattle fits this pattern. First Hill is the center of Seattle’s healthcare sector yet has a median household income that is significantly lower ($31,800) than the city-wide median household income ($55,800).xiii Research has shown that of industries concentrated downtown (i.e. securities and commodities, legal services, and accommodations) that employment growth in the healthcare sector has the greatest potential economic benefit. Nelson and Wolf-Powers (2010) used a job chains approach to measure the economic development benefits of employment in various industries that typically concentrate in downtowns.xiv Results suggest that “economic development policy makers must accompany investments in healthcare-based economic development both with strategies to promote skills attainment and credentialing among low-paid healthcare workers and with formal strategies to facilitate upward movement.” This would maximize welfare gains and promote distributional equity. Many initial healthcare sector positions require relatively little advanced training but can lead to medium-wage occupations which are more common in the hospital sector There is a tremendous amount of economic development potential in promoting public-private sector partnerships between hospitals, higher education training and low-income communities as a way to help raise community living standards. This sector is predicted to experience sustained growth in employment and also has capacity for low and semi-skilled workers with opportunities for advancement. The healthcare sector, and hospitals in particular, may be especially well suited to career ladder strategies focused on advancement and mobility as well as the attainment of entry level positions.
Biotechnology Centered primarily in Downtown’s South Lake Union neighborhood, Seattle’s biotechnology sector has made Seattle an important center for medical research and development. An industry cluster is forming with significant economic potential. Since 2004, Seattle’s biotechnology research sector has grown by more than 28 percent. These jobs are also well paying with a mean salary of $69,960, which exceeds Seattle’s city-wide mean salary of $58,590.xv,xvi
Metropolitan Improvement District’s Business Development & Market Research www.DowntownSeattle.com
8
EXPORT ORIENTATION Employment Specialization Index An important aspect of an industry cluster is a high concentration of employment within a defined geographic area relative to the national labor market. A common way to gauge this level of job concentration for a particular sector is by developing an employment specialization index, also referred to as a location quotient. The location quotient is a common economic tool that reveals an occupation’s share of the local labor market relative to the nation as a whole. For example, a location quotient of 3.0 indicates that an occupation’s share of regional employment is three times the national rate. When a location quotient is higher than 1.0, those jobs are considered basic, in that the sector is meeting local demand and assumed to be exporting excess goods and services. When the ratio is less than 1.0 the jobs are considered non-basic, in that goods and services are not meeting local demand and therefore exports are limited. Figure 8. Employment Specialization of Healthcare Sector in Seattle, 2010 Source: MID/DSA Analysis of PSRC Covered Employment Estimates, 2011 and U.S. BLS Quarterly Census of Employment and Wages, May 2010
NAICS Industry
2010 Employment
Location Quotient
621 622 623 62
Ambulatory Healthcare Services Hospitals Nursing and Residential Care Facilities Total Healthcare Sector
23,095 24,996 8,566 56,637
0.89 1.24 0.63 0.95
5417
Scientific R&D - Biotechnology
8,590
3.18
While the healthcare sector in Seattle is concentrated in several areas throughout the city, Seattle’s healthcare sector comprises a similar share of city employment as the national average. Overall, the location quotient for Seattle’s healthcare sector was 0.95, very close to the national level (see Figure 8). However, certain sectors reveal a shortage of personnel to meet local demand. In particular, Seattle’s nursing sector faces a shortage and is currently unable to meet local demand. Seattle’s nursing and residential care sector employs only about two-thirds the national share of nursing employment. Meanwhile, Seattle’s hospital employment levels exceed the national share.
9
Metropolitan Improvement District’s Business Development & Market Research www.DowntownSeattle.com
Ambulatory services slightly lag compared to the national average. So while neighborhoods, such as First Hill and the University District, as a whole Seattle’s healthcare employment is comparable to the national rate. However, in addition to healthcare delivery, there are other important clusters developing in Seattle that are healthcare related, namely in the growing field of biotechnology. Seattle has become a major hub in the biotechnology field. Seattle’s biotechnology sector employment levels are more than three times the national share indicating the formation of a significant industry cluster. The biotechnology research & development sector directly employed 8,590 workers in 2010. With such a significant location quotient, Seattle’s biotechnology sector can be considered an exporter of goods and services.
Metropolitan Improvement District’s Business Development & Market Research www.DowntownSeattle.com
10
A Regional Resource Another way to gauge the healthcare sector’s level of export is by looking at a census of its patients. As a proxy for total exports, the patient census captures the billing location of every inpatient seen at Seattle’s hospitals. The ratio helps to underscore the important role that Seattle’s hospitals play in Washington State and beyond. Seattle has some of the top hospitals in the United States. Harborview Medical Center, for example, is the only Level I adult and pediatric trauma center in Washington, Alaska, Montana and Idaho. Virginia Mason was named a 2011 Top Hospital by The Leapfrog Group. Seattle’s hospitals do not serve just Seattleites, but provide care to King County residents and others throughout Washington State and around the country. Figure 9 shows the patient census for select Seattle hospitals in 2010. While the hospitals see millions of people a year, this figure is a record of inpatient care and the resident location of patients. Each figure represents 1,000 patients, color-coded to indicate patient origin. The percentage indicates the amount of patients served coming from outside Seattle.
Figure 9. Select Seattle Hospitals’ Patient Census
Source: MID/DSA Analysis of CHARS data from Washington State Department of Health, 2011.
57%
Northwest Hospital
35%
Seattle Children’s
80%
Swedish - First Hill
40%
Swedish - Cherry Hill
51%
UW Medical Center
68%
Virginia Mason
59% Seattle Patients
11
King County Patients
Patients Outside King County
Metropolitan Improvement District’s Business Development & Market Research www.DowntownSeattle.com
Percentage of patients served from outside of Seattle
Harborview
Healthcare Sector Revenues
Figure 10. Average Taxable Healthcare Sales, 2004-2010 Source: City of Seattle, 2002 and Washington State Department of Revenue Seattle’s healthcare sector is also an important Taxable Healthcare Sales, 2011 source of revenue. Similar to employment, areas with hospitals tend to be the largest producers of taxable healthcare sales. In 2010, Seattle hospitals had reported operating revenue of $5.0 billion with operating expenses of $4.7 billion with much of the expenses occurring regionally supporting other economic sectors. In addition, Seattle hospitals paid more than $57 million in state and local license fees and taxes. Seattle’s healthcare sector produced more than $189.5 million in taxable healthcare services. The neighborhoods with the largest amount of taxable healthcare sales were Downtown ($65.8m), the University District ($90.2m) and Laurelhurst ($20.5m).xvii The healthcare sector is a major revenue generator for local governments and communities. $6,000,000,000
$5,000,000,000
$4,000,000,000
$3,000,000,000
$2,000,000,000
$1,000,000,000
$0
Total Operating Revenue
2004 2005 2006 2007 2008 2009 2010 Total Operating Expense
Salaries & Wages
Employee Benefits
Figure 11. Seattle Hospitals Revenue and Expenses, 2004-2010
0 to $25,000
$100,000 to $1 million
$25,000 to $50,000
$1 million to $10 million
$50,000 to $100,000
More than $10 million Data not available
Source: City of Seattle, 2002 and Washington State Department of Revenue Metropolitan Improvement District’s Business Development & Market Research www.DowntownSeattle.com
12
The Major Institutions Many of Seattle’s leading healthcare organizations have been designated by the City of Seattle as “Major Institutions.” These institutions have a large physical presence and employ a large number of workers. The other Major Institutions are Seattle’s higher education institutions, all of which play an important role in Seattle’s healthcare economy through research and training of medical personnel. Designated as “Major Institutions” by the City, Seattle’s 14 leading education and medical centers are a source of pride for the community and serve as an important economic engine with strong growth potential for the future. The Downtown Seattle Association (DSA), with support from the City of Seattle’s Office of Economic Development, Metropolitan Improvement District and the Major Institutions, conducted a study to assess the direct economic impact of the Major Institutions’ Seattle-based activities.xviii In 2010, the Major Institutions provided more than 77,220 direct jobs in Seattle. In comparison, the aerospace industry provided 84,400 jobs statewide; clean technology – 20,500; and information technology – 109,000. These jobs generated more than $4.9 billion in salaries and benefits.xix Each of the Major Institutions play an important role in Seattle’s healthcare sector. One of Seattle’s strengths is a strong partnership between higher education institutions and hospitals with many employees working in both sectors. Seattle Community Colleges, Seattle Pacific University, Seattle University and the University of Washington all have training programs for medical personnel.
Seattle’s Major Institutions are . . .
13
• Group Health Cooperative - Central
• Seattle Pacific University
• Harborview Medical Center
• Seattle University
• Northwest Hospital & Medical Center • Seattle Children’s Hospital
• Swedish Medical Center • Virginia Mason Medical Center
• Seattle Community Colleges
• University of Washington
Metropolitan Improvement District’s Business Development & Market Research www.DowntownSeattle.com
FIRST HILL STRATEGIC ASSESSMENT Historically, Downtown Seattle’s First Hill neighborhood has served as the center of Seattle’s healthcare industry. Known as “Pill Hill” by local residents, this neighborhood is home to three of Seattle’s largest hospitals: Harborview, Swedish’s First Hill campus and Virginia Mason. In order for Seattle, and particularly Downtown, to capitalize on the predicted growth in the healthcare sector in the next decade, First Hill must remain a place where the healthcare sector can thrive. A strategic assessment was conducted in order to identify the biggest challenges facing the Downtown’s Major Institutions.
Methodology DSA employed the following methods to gather information from stakeholders regarding the primary challenges and opportunities facing the First Hill neighborhood In order to assess the challenges facing this neighborhood, various leaders at Swedish, Harborview, the Seattle Community College District and Seattle Central Community College were interviewed.xx From the interviews, the Downtown Seattle Association (DSA) conducted a qualitative analysis looking for trends and similarities among these Major Institutions. From these analyses a set of place-based recommendations were developed to help improve First Hill as a healthcare and education center. •
Survey – A survey was designed to gather basic financial data across a series of metrics from Seattle’s Major Institutions. Five of which are located on or near First Hill.
•
Stakeholder Interviews – Interviews were conducted in person between August and December 2011 with leaders at the various Major Institutions located on or near First Hill. In addition, other experts regarding the First Hill Major Institutions were contacted to provide further detail about the Major Institutions and Seattle’s healthcare sector.
•
Research – Additional research was conducted relating to the First Hill Major Institutions and city planning processes for the First Hill neighborhood.
Metropolitan Improvement District’s Business Development & Market Research www.DowntownSeattle.com
14
Key Findings Infrastructure • Transportation – Public transit options to First Hill are limited, especially in the evenings. Many First Hill employees use public transit, but there were concerns over the infrequency of routes that serve as express links from areas around Seattle. Most of these routes operate only at peak hours. Hospitals are 24 hour institutions, running day and night every day of the year, yet mass transit serving the area does not. Response was positive to the construction of the First Hill Streetcar which will help employees, especially with North-South transportation from First Hill. • Parking – The rate for on-street parking on First Hill is $4/hour, the highest in the city. Many of the stakeholders interviewed mentioned the high price of parking as a source of complaints from both employees and patients. There was a lack of understanding as to the rationale for such a high rate for on street parking on First Hill. • Energy Security/Utilities – Old utilities that are vulnerable to earthquakes are a major concern for First Hill. As the primary healthcare center in Seattle, the hospitals must be fully functioning during a major natural disaster. A coordinated partnership between the City and hospitals on disaster preparedness efforts and obtaining more secure energy sources would be beneficial. • Limited Space for Expansion – There is limited land available for further development and expansion on First Hill and Capitol Hill. First Hill is densely populated and one of Seattle’s oldest neighborhoods. The lack of space limits the amount that hospitals will be able to expand in Seattle, especially on First Hill.
15
Metropolitan Improvement District’s Business Development & Market Research www.DowntownSeattle.com
Regulatory Issues • Major Institution Master Plan (MIMP) process - Each Major Institution when looking to epand or develop must complete a Master Plan.xxi The plan identifies zoning rules that will apply to the institution, creates a long-term development plan and forms a transportation management plan designed to help reduce single occupant vehicles. The MIMP was designed to be a collaborative effort that would codify a development process between the City, citizens and the Major Institutions. However, concern was expressed over the time and money it takes to go through the process. A collaborative effort between the City of Seattle and the Major Institutions could help identify opportunities to enhance the MIMP process and ways to streamline the process in order to better promote economic development.
Quality of Life • Security/Safety – Historically, First Hill has been associated as an area with higher levels of crime. Many people expressed concern about safety and readily recounted recent incidents experienced by employees and patients. Of the major crimes that occurred in Seattle in 2011, approximately 5 percent occurred on or near First Hill.xxii • Grafitti/Vandalism – Lower level crimes are also a problem, especially graffiti. Some of the institutions spend a significant amount of time and resouces in protecting and maintaining property from vandalism.
Place-making • Neighborhood Identity – There is an opportunity to encourage and promote a neighborhood identity. First Hill is strongly associated with the healthcare sector. First Hill could develop a more campus like feel given the close proximity of major medical and research institutions by encouraging more pedestrian walkways and green spaces, as well as neighborhood branding. There is also a need to better connect First Hill to surrounding neighborhoods such as Capitol Hill and the International District. However, much of this will be accomplished with the development of the First Hill Streetcar. • Cross-collaboration - Community leaders and policymakers can work to convene and support First Hill hospitals collaborative efforts with nearby higher education centers (i.e. Seattle Central Community College, Seattle University and the University of Washington). Promoting partnerships and cross collaboration will help maintain a healthcare cluster on First Hill by encouraging innovation and workforce development training to meet local needs.
Metropolitan Improvement District’s Business Development & Market Research www.DowntownSeattle.com
16
Conclusion A thriving healthcare sector is critical to Seattle’s future economic growth and to maintaining a high-quality of life for Seattle residents and patients from around the region. One in eight jobs in the City of Seattle is in the healthcare sector and nearly half of those jobs are Downtown. In the coming decade, the healthcare sector is predicted to experience one of the largest increases in employment nationally. Seattle has significant competitive advantages given its number of nationally recognized hospitals, several large research and training universities, a strong philanthropic community, as well as a high technology sector that has helped make Seattle a leader in the biotechnology field. With sound public policy, the healthcare sector will continue to thrive in Seattle - reducing unemployment, poverty and helping patients from Seattle and around the world. First Hill is the center of Seattle’s healthcare sector. Home to three of the City’s largest hospitals, First Hill is a major healthcare employment center. Interviewed stakeholders suggested conditions on First Hill could be improved through greater collaboration with the City of Seattle and community leaders. Some of the recommendations included:
17
•
Improving transit options for First Hill workers and patients, especially outside peak hours.
•
Convening and collaborating with the Major Institutions to review and streamline the Major Institution Master Plan (MIMP) process to promote greater economic development.
•
Allocating resources to tackle quality of life issues such as public safety concerns, grafitti and vandalism.
•
Increasing awareness about the importance of the healthcare sector to Seattle.
•
Acting as a convener and promoting greater collaboration between Seattle’s universities, hospitals and private/non-profit sectors.
Metropolitan Improvement District’s Business Development & Market Research www.DowntownSeattle.com
Appendix Stakeholders Interviewed Dan Dixon - Vice President of External Relations, Swedish Medical Center Tom Gibbon – Community Specialty Clinic Manager, External Relations, Swedish Medical Center Heidi Aylsworth – Administrative Director, Swedish Orthopedic Institute, Swedish Medical Center Elise Chayet – Assoc. Administrator of Clinical Support Services & Planning, Harborview Medical Center Ted Klainer – Capital Project Manager, Harborview Medical Center John Lederer, Ed.D – Interim Director of Research & Strategic Planning, Seattle Community Colleges Anthony Ogilvie, Ed. D – Executive Dean, Seattle Central Community College Ona Canfield, MEd. - Dean of Allied Health, Seattle Central Community College Frank Ashby, Ed.D – Director of Research & Strategic Planning, Seattle Community Colleges Carin Weiss, Ph.D. – Vice Chancellor, Seattle Community Colleges Terry McCann – Senior Planner, EA Blumen Tom Walsh, J.D. - Foster Pepper
Interview Questions 1.) What are the advantages of working in the First Hill neighborhood? 2.) What are the challenges/disadvantages of working on First Hill? 3.) What type of feedback have you received from clients/patients about visiting your institution? 4.) Are you constrained by infrastructure or regulations? Please explain. 5.) What else can be done to foster Downtown/First Hill as a healthcare/education center? 6.) Any suggestions/ recommendations on how to improve First Hill’s working environment? 7.) What are current constraints or challenges with: (a) having a medical/education center in this area? (b) expanding a medical/ education center in this area?
Metropolitan Improvement District’s Business Development & Market Research www.DowntownSeattle.com
18
Appendix Defining Downtown Downtown Seattle is approximately four square miles and is bordered by Elliott Bay to the west, Broadway to the east, SoDo to the south, and Uptown and South Lake Union to the north – with boundaries adjusted when necessary to accurately reflect Census tract data.
i MID/DSA Analysis of U.S. Bureau of Labor Statistics (BLS) Quarterly Census of Employment and Wages, May 2010. ii Guide to Career Industries, 2010-2011 Edition. U.S. Bureau of Labor Statistics. www.bls.gov/oco/cg/cgs035.htm iii Guide to Career Industries, 2010-2011 Edition. U.S. Bureau of Labor Statistics. www.bls.gov/oco/cg/cgs035.htm iv The healthcare services sector is defined as those jobs listed under the North American Industry Classification System (NAICS) 621,622 and 623. Biotechnology research workers are NAICS 5417.
v MID/DSA Analysis of U.S. Bureau of Labor Statistics Occupational Employment Statistics, May 2010. vi Puget Sound Regional Council (PSRC). Wage Estimates, 2008. vii Guide to Career Industries, 2010-2011 Edition. U.S. Bureau of Labor Statistics. www.bls.gov/oco/cg/cgs035.htm viii Jobs under NAICS Codes 621 and 622 have an estimated average salary of $55,000 and $54,000, respectively, while NAICS 623 jobs which are mainly in nursing and hospice care have mean salary of $32,000.
ix Downtown Seattle Association & Metropolitan Improvement District (2011). 2011 Peer City Review. http://www.downtownseattle.org/pdf_files/resources/PeerCityReview2011.pdf
x For more information on the Major Institution designation, see Seattle Municipal Code (SMC 23.69). xi American Hospital Association, June 2011. Avalere Health, State data use BEA-RIMS-II (2002/2008) multipliers for hospital NAICS Code 622, released 2011, applied to American Hospital Association Annual Survey data for 2009. Hospitals jobs are total part time and full time jobs.
xii Nelson, M. & Wolf-Powers, L. (2010). Chains and Ladders: Exploring the Opportunities for Workforce Development and Poverty Reduction in the Hospital Sector. Economic Development Quarterly, 24(1), 33-44.
xiii The Nielsen Company, 2011. xiv Nelson, M. & Wolf-Powers, L. (2010). Chains and Ladders: Exploring the Opportunities for Workforce Development and Poverty Reduction in the Hospital Sector. Economic Development Quarterly, 24(1), 33-44.
xv Puget Sound Regional Council (PSRC). Wage Estimates, 2008. xvi U.S. Bureau of Labor Statistics Occupational Employment Statistics, May 2010. xvii Washington State Department of Revenue. Taxable Healthcare Sales data, 2004-2010, 2011. xviii Downtown Seattle Association & Metropolitan Improvement District (2011). Economic Impact of Seattle’s Major Institutions.
xix Puget Sound Regional Council (PSRC). Covered Employment Estimates, 2011. xx Seattle University and Virginia Mason Medical Center declined to participate. xxi For more information on the Major Institution Master Plan (MIMP) process, see Seattle Municipal Code (SMC 23.69). xxii City of Seattle Police Department (2011). Precinct Crime Statistics 2010-2011.
19
Metropolitan Improvement District’s Business Development & Market Research www.DowntownSeattle.com
