Economic activity in the hospital subsector grew in August for the 12th 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.
The report was issued by Nancy LeMaster, chair of the Institute for Supply Management (ISM) hospital business survey committee.
“The hospital PMI registered 58.6% in August, a 5.3-percentage point increase from the July reading of 53.3%, indicating a 12th consecutive month of growth after a contraction in August 2023. The business activity index expanded for the 12th consecutive month. The new orders index expanded in August after an ‘unchanged’ reading the previous month, and the employment index remained in expansion territory for the fourth straight month,” LeMaster said. “The supplier deliveries index remained in expansion (which indicates slower delivery performance) for the 12th consecutive month. The case mix index expanded in August, registering 52.5%, 0.5 percentage point lower than the previous month’s figure of 53%. The days payable outstanding index was ‘unchanged’ in August, registering 50%, down 1.5 percentage points from the July reading of 51.5%. The technology spend index reading of 57% is an increase of 2.5 percentage points compared to the 54.5% recorded in July. The touchless orders index returned to expansion territory in August, registering 53.5%, up 5 percentage points from the 48.5% reported in July.”
“Panelists commented on volumes exceeding historical August levels. Most indicated the volume was driven by a resurgence in COVID-19 cases, while a few mentioned increased elective surgical volumes. Hospitals were successful in increasing staffing levels to keep pace with the volumes,” LeMaster said. “Overall, supplier delivery performance continued to improve, with limited shortages and back orders. Pricing pressure continued to have a negative effect on margins. One panelist indicated the facility was fully recovered from the Change Healthcare cyberattack, while another indicated the organization was shifting more focus and resources on cybersecurity.”
