ISM: PMI at 68.9% in July 2020 Hospital Report on Business

Economic activity in the hospital subsector grew in July for the second consecutive month, according to the nation’s hospital supply executives in the latest Hospital ISM Report on Business issued by Nancy LeMaster, MBA, chair of the Institute for Supply Management Hospital Business Survey Committee.

The Hospital PMI registered 68.9%, up 5.3 percentage points from the June reading of 63.6%. This was the second month of growth following two months of decline. The Business Activity Index continued to show growth, but at a slower pace than in June. The varying degrees of COVID-19 across the country are impacting levels of elective procedures performed, which affects overall growth and revenues.

The Employment Index indicated growth after three months of contraction. The Case Mix Index remained unchanged in July, with a reading of 61.5%. The Days Payable Outstanding Index increased 4 percentage points to 55%, compared to the June reading of 51%. The Technology Spend Index registered 49.5%; a decrease of 1 percentage point from the June reading of 50.5%.

“Survey Committee members’ comments highlighted disparities in resumption of elective procedures across the country, with some commenting that their facilities were back to 100% of historic levels, while others still had not resumed such procedures. There was consensus agreement that personal protective equipment (PPE) shortages continue to be a problem; one panelist’s comment was typical: ‘COVID-19 continues to dominate the current and future availability of PPE and downstream consumable items in the treatment and care for COVID-19 patients,’” LeMaster said.

Hospital PMI History

Month Hospital PMI Month Hospital PMI
Jul 2020 68.9 Jan 2020 57.4
Jun 2020 63.6 Dec 2019 55.9
May 2020 45.1 Nov 2019 57.6
Apr 2020 46.9 Oct 2019 55.0
Mar 2020 63.8 Sep 2019 53.5
Feb 2020 59.4 Aug 2019 56.8
Average for 12 months – 57.0

High – 68.9

Low – 45.1


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