ISM: Economic Activity in Hospital Subsector Grows in May
JUN 8, 2022 - 7:35 am
According to the latest Hospital ISM Report On Business from the Institute for Supply Management, economic activity in the hospital subsector grew in May for the 24th consecutive month.
“The Hospital PMI registered 56.9% in May, a 0.6- percentage point increase from the April reading of 56.3%, indicating a 24th consecutive month of growth,” Nancy LeMaster, MBA, chair of hospital business survey committee at the ISM, said. “The Business Activity and New Orders indexes decreased in May compared to April. The Employment Index moved back into growth territory after contracting in April. The Case Mix Index registered 53%, an increase of six percentage points compared to the April figure of 47%. The Days Payable Outstanding Index reading of 55% is up 4.5 percentage points from the 50.5% reported in April. The Technology Spend Index registered 54%, a one-percentage point increase from the April reading of 53%.
“While the majority of hospital business survey committee respondents’ comments cited a reduction in COVID-19 cases, a few panelists indicated they were again seeing an uptick in cases. Several mentioned declining hospital margins and an intense focus on growing elective procedure volumes. Staffing continued to constrain capacity, but employment levels improved. Some comments mentioned nonclinical positions being frozen as hospitals struggled with high labor and supply costs. China’s COVID-19 lockdowns, shipping delays, fuel surcharges and product shortages continued to challenge supply chain professionals. In spite of those issues, several panelists mentioned efforts to reduce inventory levels, and others commented that their staffs’ increased ability to identify product substitutions had eased frustration encountered by caregivers.”