According to the Institute for Supply Management’s latest hospital subsector report, economic activity in the hospital subsector grew in March for the 34th consecutive month.
“The Hospital PMI registered 53.4% in March, a 0.1-percentage point decrease from the February reading of 53.5%. The Business Activity Index decreased compared to February, while the New Orders Index increased compared to the prior month. The Employment Index remained in growth territory,” Nancy LeMaster, chair of the hospital business survey committee of the ISM, said. “The Case Mix Index reading of 53% is an increase of 1.5 percentage points compared to the February figure of 51.5%. The Days Payable Outstanding Index went into contraction at 47.5%, down 7.5 percentage points from the 55% reported in February. So did the Technology Spend Index, which at 44% decreased nine percentage points compared to the 53% recorded in February.
“The pressure on hospital margins from (1) inflationary conditions and (2) labor and supply costs were top-of-mind concerns of business survey committee respondents in March. Elective procedure volumes were strong and are projected to remain so. Supplier deliveries were faster, and overall product availability improved. However, some shortages persist, particularly with products made from resin. Most respondents commented that their facilities were actively reducing COVID-related inventories, shifting focus from such supplies as personal protective equipment to more complex (and costly) medical devices. Employment continued to improve, with comments suggesting hospitals have been able to shift from temporary agency staffing to permanent employees. Prices for supplies and pharmaceuticals continued to elevate. Technology spends contracted for the first time since May 2021.”
