Hospital ISM Report On Business shows hospital PMI at 62.6 percent

Jan. 13, 2021

Economic activity in the hospital subsector grew in December for the seventh consecutive month, say the nation’s hospital supply executives in the latest Hospital ISM Report On Business, announced the Institute for Supply Management (ISM).

In the report issued by Nancy LeMaster, MBA, Chair of the ISM Hospital Business Survey Committee, “The Hospital PMI registered 62.6 percent in December, unchanged from November.” This was the seventh month of growth following two months of contraction.

The Business Activity, New Orders, and Backlog of Orders indexes grew in December, while the Employment Index contracted. The Case Mix Index decreased to 62 percent, down 0.5 percentage point compared to the November reading of 62.5 percent. The Days Payable Outstanding Index increased to 52.5 percent, up 1.5 percentage points from the November reading of 51 percent. The Technology Spend Index registered 52 percent, a decrease of 6 percentage points from the November reading of 58 percent.

“December comments from Business Survey Committee panelists echoed and reinforced the same issues highlighted in November. COVID-19 spikes account for most of patient volumes, and elective procedures are once again being delayed due to lack of capacity. Availability of personal protective equipment (PPE) continues to be a challenge, but staffing has become an even bigger issue. Such comments as, ‘Having a difficult time finding employees, especially environmental services department (EVS) and other support staff’ and ‘COVID-19 burnout is causing vacancies across the system’ were typical,” says LeMaster.

Institute for Supply Management has the release.

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