Economic activity in the hospital subsector grew in November for the 15th consecutive month after contracting twice in the previous four-month period, with 35 consecutive months of growth prior to that, according to the latest Hospital Report On Business by the Institute for Supply Management (ISM).
The report was issued by Nancy LeMaster, chair of the ISM hospital business survey committee.
“The hospital PMI registered 58.5% in November, a 6.6-percentage point increase from the October reading of 51.9%, indicating a 15th consecutive month of growth. The business activity index moved back into expansion territory after contracting in October for the first time in 15 months. The new orders index returned to expansion after contracting in the previous month, and the employment index was ‘unchanged’ in November,” LeMaster said. “The supplier deliveries index remained in expansion (which indicates slower delivery performance) for the 15th consecutive month. The case mix index was ‘unchanged’ in November, registering 50%, a decrease of 2 percentage points from the previous month’s figure of 52%. The days payable outstanding index returned to expansion in November, registering 54%, up 8.5 percentage points from the 45.5% reported in October. The technology spend index reading of 59% is a decrease of 2 percentage points compared to the 61% recorded in October. The touchless orders index remained in expansion territory in November, registering 51%, up 0.5 percentage point from the 50.5% reported in October.”
“Hospital business survey panelists indicated their facilities continued to struggle with IV fluid shortages, which caused some elective surgeries to be rescheduled. However, the situation was not as bad as it was in October. Conservation efforts and an increase in imported fluids, along with strong seasonal hospital demand, resulted in a volume rebound for most organizations, “LeMaster said. “Panelists indicated that supplier deliveries were slower and attributed that to weather issues and backlogs from the East Coast ports strike. They also commented on an increase in product allocations and substitutions. The increase in patient volumes resulted in a slight increase in the employment index. Several panelists mentioned their organizations were undergoing full-time employee reduction initiatives to improve margins. Strong volumes are anticipated through year’s end.”
