Hospital Subsector Economic Activity Grows Again in February



Economic activity in the hospital subsector grew in February for the ninth consecutive month, according to the latest Hospital ISM Report on Business from the Institute for Supply Management.

“The Hospital PMI registered 57.5% in February, up 1.7 percent­age points from the January reading of 55.8[%], indicating a ninth consecutive month of growth,” Nancy LeMaster, MBA, chair of the Institute for Supply Management hospital business survey committee, said. “The Business Activity Index decreased slightly compared to January. The New Orders and Employment indexes saw increases in February compared to January. The Case Mix Index decreased to 52%, down 4.5 percentage points compared to the January reading of 56.5%. The Days Payable Outstanding Index decreased to 50.5%, down 4.5 percentage points from the January reading of 55%. The Technology Spend Index registered 58%, an increase of eight percentage points from the January reading of 50%.

“February comments from Business Survey Committee panelists were cautiously optimistic, with the exception of one panelist who wrote, ‘2021 is full speed ahead!’ Overall, coronavirus (COVID-19) cases declined and some organizations began to schedule more elective surgeries. Panelists reported varying rates of declines in cases, but the consensus expectation was that declines would continue. Supply chain disruptions continued, especially for needles and syringes and nitrile gloves. Availability and high prices were more of an issue for small providers and in rural areas.”

Hospital PMI History

Month Hospital PMI Month Hospital PMI
Feb 2021 57.5 Aug 2020 63.8
Jan 2021 55.8 Jul 2020 68.9
Dec 2020 62.6 Jun 2020 63.6
Nov 2020 62.6 May 2020 45.1
Oct 2020 63.0 Apr 2020 46.9
Sep 2020 63.3 Mar 2020 63.8
Average for 12 months – 59.7

High – 68.9

Low – 45.1

 

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