Economic activity in the hospital subsector grew in September for the 16th 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 60.6 percent in September, increasing 0.2 percentage point from the August reading of 60.4 percent, indicating a 16th consecutive month of growth. The Business Activity Index increased, while the New Orders Index decreased in September compared to August. The Employment Index fell deeper into contraction in September. The Case Mix Index decreased to 55.5 percent, down 0.5 percentage point compared to the August reading of 56 percent. The Days Payable Outstanding Index registered 48 percent, no change from the August reading. The Technology Spend Index registered 52 percent, an increase of 2 percentage points from the August reading of 50 percent.”
LeMaster continued, “The coronavirus surge was felt by hospitals across the country, causing elective procedures to be canceled and capacity converted to COVID-19 units. Labor shortages continue to be a critical issue, with hospitals having trouble recruiting and retaining both clinical and support resources. Hospital Business Survey committee members commented that ongoing shipping delays were impacting availability of supplies beyond traditional personal protective equipment (PPE), with shortages in aluminum impacting availability of everything from medical equipment to crutches. Long lead times have led some organizations to increase inventory levels and purchase in bulk. Comments such as ‘When we can, we are still ordering above and beyond what we normally carry, because if we don’t, we are scrambling to find supplies’ were typical.”
History of Hospital PMI Month Hospital PMI (data is in percentages):
- Sep 2021 60.6 Mar 2021 58.8
- Aug 2021 60.4 Feb 2021 57.5
- Jul 2021 62.8 Jan 2021 55.8
- Jun 2021 63.1 Dec 2020 62.6
- May 2021 61.3 Nov 2020 62.6
- Apr 2021 61.9 Oct 2020 63.0
Average for 12 months – 60.9%, High – 63.1%, Low – 55.8%
The information compiled in this report is for the month of September 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).
The data presented herein is obtained from a survey of hospital supply executives based on information they have collected within their respective organizations. ISM makes no representation, other than that stated within this release, regarding the individual company data collection procedures. The data should be compared to all other economic data sources when used in decision-making.