Economic activity in the hospital subsector grew in July for the 11th consecutive month after contracting twice in the previous four-month period, with 35 consecutive months of growth prior to that, according to the Institute for Supply Management’s (ISM) latest Hospital Report On Business.
The report was issued by Nancy LeMaster, chair of the ISM hospital business survey committee.
“The hospital PMI registered 53.3% in July, a 2.5-percentage point decrease from the June reading of 55.8%, indicating an 11th consecutive month of growth after a contraction in August 2023. The business activity index expanded for the 11th consecutive month. New orders were unchanged in July compared to June, and the employment index remained in growth territory,” LeMaster said. “The supplier deliveries index remained in expansion (which indicates slower delivery performance). The case mix index expanded in July, registering 53%, an increase of 2 percentage points compared to the previous month’s figure of 51%. The days payable outstanding index remained in expansion territory in July, registering 51.5%, the same reading as reported in June. The technology spend index reading of 54.5% is a decrease of seven percentage points compared to the 61.5% recorded in June. The touchless orders index returned to contraction territory in July, registering 48.5%, down 1.5 percentage points from the 50% reported in June.”
“Geography had a major impact on panelists’ evaluations of patient volumes, supplier delivery performance and inventory levels. Facilities impacted by Hurricane Beryl saw lower volumes and supply disruptions. Those not impacted reported strong inpatient volumes, with panelists commenting that there was no ‘summer lull’ this year,” LeMaster said. “Hospitals potentially threatened by Beryl reported increasing inventories, while those in other areas maintained efforts to reduce levels. Additionally, facilities impacted by the CrowdStrike IT outage saw an increase in backlogs. Shortages related to syringes and irrigation bottles continued. There was also mention of an uptick in medical device recalls. The employment index continued to expand, but comments were mixed. Some panelists outlined creative strategies and efforts to increase hiring, while others commented about hiring freezes due to margin pressure.”
