ISM: Economic Activity in Hospital Subsector Grows Again in July
AUG 9, 2021 - 6:28 am
Economic activity in the hospital subsector grew in July for the 14th consecutive month, according to the latest Hospital ISM Report on Business from the Institute for Supply Management.
“The Hospital PMI registered 62.8% in July, decreasing 0.3 percentage point from the June reading of 63.1%, indicating a 14th consecutive month of growth,” Nancy LeMaster, MBA, chair of the Institute for Supply Management’s hospital business survey committee, said. “The Business Activity Index increased in July compared to June. The New Orders Index decreased slightly, while the Employment Index fell into contraction in July. The Case Mix Index increased to 53%, up 1.5 points compared to the June reading of 51.5%. The Days Payable Outstanding Index registered 53.0%, a 6.5-percentage point increase from the June reading of 46.5%. The Technology Spend Index registered 53%, a decrease of 4.5 percentage points from the June reading of 57.5%.
“In July, business activity was at its highest level in 2021. Business Survey Committee panelists reported continuing pent-up demand for procedures that had been deferred during the pandemic, as well as a resurgence in COVID-19 cases. The brief rebound in employment during June did not last, and panelists commented they were having difficulty recruiting both clinical and nonclinical staff. Panelists indicated that physician shortages and vacations impacted order backlogs. Supply shortages and long delivery times continue to be problematic. Although the numbers did not show an increase in inventory levels, comments such as ‘having to carry more inventory to cover longer lead times experienced due to consolidating deliveries’ and ‘increasing periodic automatic replenishment (PAR) levels due to supply chain disruptions’ were common.”
Hospital PMI History
Average for 12 months – 61.4
High – 63.8
Low – 55.8
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