ISM reports continuous economic growth in hospital subsector
Economic activity in the hospital subsector grew in April for the 23rd consecutive month, say the nation’s hospital supply executives in the latest Hospital ISM Report On Business.
The report was issued by Nancy LeMaster, MBA, Chair of the Institute for Supply Management (ISM) Hospital Business Survey Committee: “The Hospital PMI registered 56.3 percent in April, a 5.9- percentage point increase from the March reading of 50.4 percent, indicating a 23rd consecutive month of growth. The Business Activity and New Orders Indexes increased in April compared to March. Meanwhile, the Employment Index fell into contraction territory. The Case Mix Index registered 47 percent, an increase of 4 percentage points compared to the March figure of 43 percent. The Days Payable Outstanding Index reading of 50.5 percent is down 1.5 percentage points from the 52 percent reported in March. The Technology Spend Index registered 53 percent, a 3-percentage point decrease from the March reading of 56 percent.”
LeMaster continues, “Hospital Survey Committee panelists generally commented on the reduction of COVID-19 patients, but the rates at which those cases were backfilled by elective procedures varied. Some indicated capacity was constrained by a lack of labor. Additionally, while a few panelists indicated improved supply availability, many reported continued shortages and back orders that strained their staffs’ capabilities. IV solutions, lab supplies and resin based products were mentioned as being in especially short supply. Inventory levels grew during the month, despite several panelists citing their facilities’ efforts to burn through personal protective equipment (PPE) stocks and acknowledging their overall inventory levels were too high. Some panelists reported a need to continue with high inventory levels due to lead-time unpredictability.”
Hospital PMI History
Month Hospital PMI Month Hospital PMI
Apr 2022 56.3 Oct 2021 63.4
Mar 2022 50.4 Sep 2021 60.6
Feb 2022 56.9 Aug 2021 60.4
Jan 2022 64.1 Jul 2021 62.8
Dec 2021 63.8 Jun 2021 63.1
Nov 2021 64.5 May 2021 61.3
Average for 12 months – 60.6
High – 64.5
Low – 50.4
The information compiled in this report is for the month of April 2022.
The Hospital PMI was developed in collaboration with the Association for Healthcare Resource & Materials Management (AHRMM), an association for the healthcare supply chain profession, and a professional membership group of the American Hospital Association (AHA).
