Economic activity in the hospital subsector grew in September for the 13th 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 from the Institute for Supply Management.
The report was issued by Nancy LeMaster, chair of the ISM hospital business survey committee.
“The hospital PMI registered 55% in September, a 3.6-percentage point decrease from the August reading of 58.6%, indicating a 13th consecutive month of growth after a contraction in August 2023,” LeMaster said. “The business activity index expanded for the 13th straight month. The new orders index expanded for the second consecutive month, while the employment index also remained in expansion territory for the fifth straight month.”
“The supplier deliveries index remained in expansion (which indicates slower delivery performance) for the 13th consecutive month. The case mix index contracted in September after expanding for four consecutive months, registering 48.5%, four percentage points lower than the previous month’s figure of 52.5%,” LeMaster said. “The days payable outstanding index returned to expansion in September, up two percentage points from the ‘unchanged’ reading of 50% in August. The technology spend index reading of 56.5% is a decrease of 0.5 percentage point compared to the 57% recorded in August. The touchless orders index returned to contraction territory in September, registering 47%, down 6.5 percentage points from the 53.5% reported in August.”
“Generally, business is good as we move into the fourth quarter. Facilities are reporting that volumes have increased somewhat, as is usually the case at this time of year. Inventories are increasing as COVID-19 and flu vaccines and other seasonal medications arrive,” LeMaster said. “However, some hospitals are reporting that some supply chains are showing signs of congestion, as back orders are up somewhat and some transportation disruptions have been cited. Hospitals are looking to fill vacant staff positions and reduce reliance on temporary labor. Some organizations have acquired or are building new facilities (both inpatient and outpatient), contributing to technology spend. It has also been reported that organizations are also looking to augment provider networks, which in some cases is related to expansion of their physical plants.”
