Monthly ISM report shows slow economic growth in hospitals
Economic activity in the hospital subsector grew in May for the 24th 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 56.9 percent in May, a 0.6- percentage point increase from the April reading of 56.3 percent, indicating a 24th consecutive month of growth. The Business Activity and New Orders indexes decreased in May compared to April. The Employment Index moved back into growth territory after contracting in April. The Case Mix Index registered 53 percent, an increase of 6 percentage points compared to the April figure of 47 percent. The Days Payable Outstanding Index reading of 55 percent is up 4.5 percentage points from the 50.5 percent reported in April. The Technology Spend Index registered 54 percent, a 1-percentage point increase from the April reading of 53 percent.”
LeMaster continues, “While the majority of Hospital Business Survey Committee respondents’ comments cited a reduction in COVID-19 cases, a few panelists indicated they were again seeing an uptick in cases. Several mentioned declining hospital margins and an intense focus on growing elective procedure volumes. Staffing continued to constrain capacity, but employment levels improved. Some comments mentioned nonclinical positions being frozen as hospitals struggled with high labor and supply costs. China’s COVID-19 lockdowns, shipping delays, fuel surcharges and product shortages continued to challenge supply chain professionals. In spite of those issues, several panelists mentioned efforts to reduce inventory levels, and others commented that their staffs’ increased ability to identify product substitutions had eased frustration encountered by caregivers.”
Hospital PMI History
Month Hospital PMI Month Hospital PMI
May 2022 56.9 Nov 2021 64.5
Apr 2022 56.3 Oct 2021 63.4
Mar 2022 50.4 Sep 2021 60.6
Feb 2022 56.9 Aug 2021 60.4
Jan 2022 64.1 Jul 2021 62.8
Dec 2021 63.8 Jun 2021 63.1
Average for 12 months – 60.3
High – 64.5
Low – 50.4