Economic activity in the hospital subsector grew in January for the 17th 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 (ISM) Hospital Report On Business.
The report was issued by Nancy LeMaster, chair of the ISM hospital business survey committee.
“The hospital PMI registered 53.5% in January, a 2.8-percentage point decrease from the December reading of 56.3%, indicating a 17th consecutive month of growth. The business activity index was in expansion territory for the third straight month. The new orders index expanded for the third consecutive month, and the employment index was in expansion territory for the second straight month,” LeMaster said. “The supplier deliveries index was in expansion (which indicates slower delivery performance) for the 17th consecutive month. The case mix index remained in expansion in January, registering 53%, a decrease of 0.5 percentage point from the reading of 53.5% reported in December. The days payable outstanding index returned to contraction territory in January, registering 48%, down 3 percentage points from the 51% reported in December. The technology spend index reading of 57.5% is an increase of 3 percentage points compared to the 54.5% recorded in December. The touchless orders index was ‘unchanged’ in January, registering 50%, down 1.5 percentage points from the 51.5% reported in December.”
“The most frequently mentioned issue by the hospital business survey panelists was their concerns surrounding the impact of tariffs on the price of supplies. There was significant concern that even companies not directly impacted by tariffs will use them as an excuse to raise prices,” LeMaster said. “This was the first month that panelists indicated that respiratory cases had an impact on volumes. Some facilities continued to reschedule elective procedures due to the hurricane-caused IV fluid shortage. Inventories continued to increase as a buffer to product shortages and in preparation for increased volumes from seasonally driven respiratory illnesses. Employment continued to grow due to successful recruitment efforts and an increase in patients with acute conditions.”
