Economic activity in the hospital subsector grew in June for the 10th consecutive month after contracting twice in the previous four-month period, with 35 consecutive months of growth prior to that, according to 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 June, a 2.6-percentage point decrease from the May reading of 58.4%, indicating a 10th consecutive month of growth after a contraction in August. The business activity index expanded for the 10th consecutive month. The new orders index expanded for the 10th straight month, and the employment index remained in growth territory,” LeMaster said. “The supplier deliveries index remained in expansion (which indicates slower delivery performance). The case mix index expanded in June, registering 51%, a decrease of 0.5 percentage point compared to the previous month’s figure of 51.5%. The days payable outstanding index remained in expansion territory in June, registering 51.5%, down 5.5 percentage points from the 57% reported in May. The technology spend index reading of 61.5% is an increase of 1 percentage point compared to the 60.5% recorded in May. The touchless orders index was ‘unchanged’ in June, registering 50%, up 1.5 percentage points from the 48.5% reported in May.”

“The majority of business survey committee respondents indicated that patient volumes in June were strong — just not as strong as in May. Some panelists commented that their facilities experienced a shift to more medical versus surgical patients, while others noted elevated levels of surgeries and outpatient volumes,” LeMaster said. “The employment index continued to indicate growth, with respondents crediting successful recruitment efforts and a reduction in turnover. To preserve margins, hospitals continued to focus on (1) replacing agency labor with permanent staff to reduce labor costs and (2) reducing utilization and increasing standardization of supplies. Weather impacted supply deliveries in parts of the country, and the syringe shortage continues to be problematic.”