The latest Hospital ISM Report On Business issued by Nancy LeMaster, MBA, Chair of the Institute for Supply Management (ISM) Hospital Business Survey Committee, shows, “The Hospital PMI” registered 58.8 % in March, up 1.3 percentage points from the February reading of 57.5, indicating a 10th consecutive month of growth, reported ISM.
The Business Activity and New Orders Indexes increased compared to February, while the Employment Index fell into contraction in March. The Case Mix Index increased to 54%, up 2 percentage points compared to the February reading of 52%. The Days Payable Outstanding Index decreased to 44%, down 6.5 percentage points from the February reading of 50%. The Technology Spend Index registered 51%, a decrease of 7 percentage points from the February reading of 58%.
“In March, hospitals began to see the shift in volumes they were hoping for in February. At some facilities, total volume was unchanged, but the patient mix significantly improved. ‘Lower coronavirus (COVID-19) admissions and increased elective procedures’ was a sentiment echoed by many Business Survey Committee panelists. Extreme weather in the Midwest and South contributed to supply disruptions, including increased back-orders and product substitutions. Several panelists mentioned high levels of manual work-arounds required to find needed supplies. Gloves remain in short supply, as do needles and syringes. Panelists anticipate additional shortages of products made from petroleum-based raw materials,” says LeMaster.
The information compiled in this report is for the month of March 2021. The Hospital PMI was developed in collaboration with the Association for Health Care Resource & Materials Management (AHRMM), an association for the health care supply chain profession, and a professional membership group of the American Hospital Association (AHA).
