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Hospital PMI at 54.9%; July 2022 Hospital ISM Report On Business

by Marc Brousseau
August 5, 2022
in Health
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Economic activity in the hospital subsector grew in July for the 26th consecutive month, say the nation’s hospital supply executives in the latest Hospital ISM® Report On Business®.

The report was issued today by Nancy LeMaster, MBA, Chair of the Institute for Supply Management® (ISM®) Hospital Business Survey Committee: “The Hospital PMI® registered 54.9 percent in July, a 3.1- percentage point decrease from the June reading of 58 percent, indicating a 26th consecutive month of growth. The Business Activity and New Orders indexes remained in growth territory; however, the Business Activity Index increased while the New Orders Index decreased compared to June. The Employment Index also decreased in July compared to June. The Case Mix Index remained in contraction territory, registering 47.5 percent, a decrease of 1 percentage point compared to the June figure of 48.5 percent. The Days Payable Outstanding Index registered 57 percent, up 7.5 percentage points from the 49.5 percent reported in June. The Technology Spend Index registered 53 percent, a 0.5-percentage point decrease from the June reading of 53.5 percent.”

LeMaster continues, “Several Hospital Business Survey Committee respondents indicated their facilities were again dealing with an increase in COVID-19 cases. The increases generally did not appear severe enough to displace elective procedures, however. Labor and supply costs continue to rise, putting pressure on the supply chain to offset some of those price increases. Shortages of materials such as contrast media and laboratory supplies are easing, but sourcing continues to be a challenge for (1) products containing plastic and (2) medical equipment requiring computer chips. Panelists commented on the challenges related to recruiting and retaining staff, with one attributing an increase in days payable outstanding to the facility’s lack of accounts receivable personnel.”

Hospital PMI® History

Month

Hospital PMI®

Month

Hospital PMI®

Jul 2022

54.9

Jan 2022

64.1

Jun 2022

58.0

Dec 2021

63.8

May 2022

56.9

Nov 2021

64.5

Apr 2022

56.3

Oct 2021

63.4

Mar 2022

50.4

Sep 2021

60.6

Feb 2022

56.9

Aug 2021

60.4

Average for 12 months – 59.2
High – 64.5
Low – 50.4

Marc Brousseau

Marc Brousseau

Deputy Editor

PRADA Eyewear
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