Phoenix Metro Healthcare Sector Adds 20,000 Jobs in March, Reaching 343,000 Total

The Phoenix Metro healthcare sector experienced significant job growth in March 2024, adding 20,000 jobs and reaching a total of 343,000 healthcare and social services positions. This represents a 17% increase from the pre-pandemic high in February 2020, demonstrating the sector's recovery and expansion.

The ambulatory and outpatient services subsector currently employs the highest number of people at 170,000, growing by 125% since the start of the pandemic. Hospital systems in the region employ about 73,000 people, operating at 110% of their pre-pandemic levels.

Despite this impressive job growth, concerns remain about whether the healthcare sector can sufficiently meet the needs of the nearly 5 million residents in the Phoenix Metro area. Analysis shows that Arizona is experiencing shortages in healthcare providers, ranking 41st in the nation for primary care health providers, 25th for dental health, and 49th for mental health, with only 10% of the state's population's mental health needs being met.

Why this matters: The healthcare sector's ability to keep pace with the growing population in the Phoenix Metro area has significant implications for public health and quality of life. Addressing provider shortages and ensuring access to care for all residents will be critical challenges for the region in the coming years.

Valleywise Health, a healthcare system that serves as a safety net for the community, recently opened a new 10-story, 673,000 square-foot medical center in Phoenix. The $935 million project, funded by a bond measure approved by Maricopa County voters in 2014, features upgraded and specialized care, including a Level 1 trauma center and the nationally recognized Arizona Burn Center. Valleywise Health serves a disproportionate number of low-income and uninsured patients, with over 2 million Arizonans enrolled in the state's Medicaid program.

Key Takeaways

• Phoenix healthcare sector added 20,000 jobs, reaching 343,000 positions (17% increase)
• Ambulatory/outpatient services employ 170,000, up 125% since pandemic start
• Arizona ranks low in healthcare provider availability, with only 10% of mental health needs met
• Valleywise Health opened a $935M medical center to serve low-income, uninsured patients