ISM Report Highlights Growing Pressures on Healthcare Procurement, Staffing

The report underscores broad supply chain issues in healthcare like declining employment and rising costs, urging buyers to scrutinize supplier charges and review inventory.

Key Highlights

  • Healthcare sector prices reached their highest level since July 2022, indicating mounting cost pressures.
  • Supplier deliveries slowed, and order backlogs hit a four-year high, complicating supply chain management.
  • Procurement teams should review lead times, monitor surcharges, and optimize inventory to mitigate risks.

ISM’s September report showed mounting cost and delivery pressures. The services sector Prices Index reached 74, its highest reading since July 2022, while supplier deliveries slowed and order backlogs also reached a four-year high. Healthcare and social assistance reported higher prices, slower deliveries, growing inventories and orders, and declining employment. Tariffs and fuel costs were leading supply chain concerns.

For hospital purchasing teams, these findings signal potential pressure on freight, technology, facilities, and purchased-service budgets heading into 2027. Rising demand and slower deliveries could also complicate backorder management and capital projects. Buyers should scrutinize supplier surcharges, confirm lead times, and review inventory needs. The report identifies broad healthcare employment declines; it does not establish whether supply chain staffing specifically fell.

About the Author

Daniel Beaird

Daniel Beaird

Head of Content and Editor-in-Chief

Daniel Beaird is Head of Content and Editor-in-Chief for Healthcare Purchasing News.

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