ISM: Hospital Subsector Grows in January; PMI at 55.8%
FEB 8, 2021 - 5:05 am
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
Average for 12 months – 59.9
High – 68.9
Low – 45.1
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