Economic activity in the hospital subsector grew in April for the 11th consecutive month, say the nation’s hospital supply executives in the latest Hospital ISM Report On Business, announced the Institute for Supply Management (ISM).
The report was issued May 7th by Nancy LeMaster, MBA, Chair of the Institute for Supply Management (ISM) Hospital Business Survey Committee: “The Hospital PMI registered 61.9 percent in April, up 3.1 percentage points from the March reading of 58.8%, indicating an 11th consecutive month of growth. The Business Activity and New Orders indexes increased in April compared to March.
The Employment Index expanded in April, following a month of contraction. The Case Mix Index increased to 55.5%, up 1.5 percentage points compared to the March reading of 54%. The Days Payable Outstanding Index increased to 57%t, up 13 percentage points from the March reading of 44%. The Technology Spend Index registered 55%, an increase of four percentage points from the March reading of 51%.
“In April, most hospitals experienced continued growth in outpatient and elective procedures as their coronavirus (COVID-19) cases went down. However, there were notable COVID-19 ‘hot spot’ exceptions to this trend. Business Survey Committee panelists attributed growth in business activity and new orders to the increase in vaccinated adults.
Typical comments included, ‘Vaccinated folks are more apt to schedule procedures’ and ‘Increased requests due to lower COVID-19 activity.’ Employment rebounded in April. Back orders and product availability continued to be challenges; many panelists indicated the biggest causes were raw material shortages, port congestion and delivery schedule changes. Shortages of nitrile gloves, needles and syringes, and plastic products have been particularly problematic,” said LeMaster.
