Economic activity in the hospital subsector grew in January for the eighth consecutive month, according to the nation’s hospital supply executives in the latest Hospital ISM Report On Business.
The report was issued by Nancy LeMaster, chair of the Institute for Supply Management (ISM) Hospital Business Survey Committee. The Hospital PMI registered 55.8% in January, down 6.8 percentage points from the December reading of 62.6. This was the eighth month of growth.
The Business Activity Index and New Orders Index both had a sizeable decrease in January compared to December, with New Orders moving into contraction.
The Employment Index increased in January moving back into expansion territory. The Case Mix Index decreased to 56.5%, down 5.5 percentage points compared to the December reading of 62 %.
The Days Payable Outstanding Index increased to 55%, up 2.5 percentage points from the December reading of 52.5%. The Technology Spend Index registered 50%, a decrease of 2 percentage points from the December reading of 52%.
“January comments from Business Survey Committee panelists echoed and reinforced the same issues highlighted in November and December. COVID-19 spikes account for most of patient volumes, and elective procedures are once again being delayed due to lack of capacity. Availability of personal protective equipment (PPE) continues to be a challenge, with (1) needles and syringes in short supply related to the vaccine rollout and (2) raw material issues causing problems with the glove supply. Employment improved, with one panelist noting an ability to hire contract employees. A few panelists indicated COVID-19 was receding in their areas, enabling them to start scheduling some elective procedures,” LeMaster said.
Hospital PMI History
|Month||Hospital PMI||Month||Hospital PMI|
|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|
|Aug 2020||63.8||Feb 2020||59.4|
|Average for 12 months – 59.9
High – 68.9
Low – 45.1
Like this story? Begin each business day with news you need to know! Register now for FREE Daily E-News Broadcast and start YOUR day informed!