Hospital PMI? at 53.5%; August 2022 Hospital ISM? Report On Business?

BY PR Newswire | ECONOMIC | 09/08/22 10:00 AM EDT

TEMPE, Ariz., Sept. 8, 2022 /PRNewswire/ -- Economic activity in the hospital subsector grew in August for the 27th 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 53.5 percent in August, a 1.4-percentage point decrease from the July reading of 54.9 percent, indicating a 27th consecutive month of growth. The Business Activity Index decreased in August compared to July, while the New Orders index increased in August. The Employment Index moved into contraction territory in August. The Case Mix Index registered 53.5 percent, an increase of 6 percentage points compared to the July figure of 47.5 percent. The Days Payable Outstanding Index registered 57.5 percent, up 0.5 percentage point from the 57 percent reported in July. The Technology Spend Index registered 54.5 percent, a 1.5-percentage point increase from the July reading of 53 percent."

LeMaster continues, "Hospitals continue to see the shift from COVID-19 patients to elective procedures. In most cases, this shift has resulted in increased revenues; however, due to higher costs of labor and supplies, higher revenues are not translating into increased profitability. For the first time since April 2020, Business Survey Committee respondents mentioned hiring freezes and temporary staffing reductions as ways to reduce costs. This dynamic, as well as the ongoing challenges of recruitment and retention, resulted in a decrease in the Employment Index. The New Orders Index indicated growth at a faster rate in August, supporting comments about pent-up demand for elective procedures. Respondents' comments were mixed regarding supply availability and back orders. A decrease in the Supplier Deliveries Index was consistent with sentiment of slightly improved delivery performance during the month, but other panelists cautioned that shortages simply moved from one category to another. The growth in inventory levels supports the theory that hospitals are again building buffer stock."

Hospital PMI??History


Month

Hospital PMI?

Month

Hospital PMI?

Aug 2022

53.5

Feb 2022

56.9

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


Average for 12 months ? 58.6

High ? 64.5

Low ?? 50.4

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About This Report

The information compiled in this report is for the month of August 2022.

The Hospital PMI??was developed in collaboration with the Association for Health Care Resource & Materials Management (AHRMM), an association for the health care supply chain profession, and a professional membership group of the American Hospital Association (AHA).

The data presented herein is obtained from a survey of hospital supply executives based on information they have collected within their respective organizations. ISM? makes no representation, other than that stated within this release, regarding the individual company data collection procedures. The data should be compared to all other economic data sources when used in decision-making.

Data and Method of Presentation

The Hospital ISM? Report On Business? is based on data compiled from hospital purchasing and supply executives nationwide. Survey responses reflect the change, if any, in the current month compared to the previous month. For each of the indicators measured (Business Activity, New Orders, Employment, Supplier Deliveries, Inventories, Prices, Prices: Pharmaceuticals, Prices: Supplies, Backlog of Orders, Imports, Inventory Sentiment, Case Mix, Days Payable Outstanding, Technology Spend, and Touchless Orders), this report shows the percentage reporting each response and the diffusion index. Responses represent raw data and are never changed. Beginning in January 2021, the Report On Business? staff and consultants are gathering market information to better validate the Exports Index. Exports Index data are still being collected.

The Hospital PMI? is a composite index computed from the following, equally weighted indexes: Business Activity, New Orders, Employment and Supplier Deliveries. Diffusion indexes have the properties of leading indicators and are convenient summary measures showing the prevailing direction of change and the scope of change. A Hospital PMI? index reading above 50 percent indicates that the hospital sub-sector is generally expanding; below 50 percent indicates that it is generally declining. For the sub-indexes, except Supplier Deliveries, an index reading above 50 percent indicates that the sub-index is generally expanding; below 50 percent indicates that it is generally contracting. A Supplier Deliveries Index above 50 percent indicates slower deliveries and below 50 percent indicates faster deliveries.

The Hospital ISM? Report On Business? survey is sent out to the Hospital Business Survey Committee respondents the first part of each month. Respondents are asked to ONLY report on U.S. operations for the current month. ISM? receives survey responses throughout most of any given month, with the majority of respondents generally waiting until late in the month to submit responses to give the most accurate picture of current business activity. ISM? then compiles the report for release on the fifth business day of the following month.

ISM ROB Content

The Institute for Supply Management? ("ISM") Report On Business? (Manufacturing, Services, and Hospital reports) ("ISM ROB") contains information, text, files, images, video, sounds, musical works, works of authorship, applications, and any other materials or content (collectively, "Content") of ISM ("ISM ROB Content"). ISM ROB Content is protected by copyright, trademark, trade secret, and other laws, and as between you and ISM, ISM owns and retains all rights in the ISM ROB Content. ISM hereby grants you a limited, revocable, nonsublicensable license to access and display on your individual device the ISM ROB Content (excluding any software code) solely for your personal, non-commercial use. The ISM ROB Content shall also contain Content of users and other ISM licensors. Except as provided herein or as explicitly allowed in writing by ISM, you shall not copy, download, stream, capture, reproduce, duplicate, archive, upload, modify, translate, publish, broadcast, transmit, retransmit, distribute, perform, display, sell, or otherwise use any ISM ROB Content.

Except as explicitly and expressly permitted by ISM, you are strictly prohibited from creating works or materials (including, but not limited to tables, charts, data streams, time-series variables, fonts, icons, link buttons, wallpaper, desktop themes, online postcards, montages, mashups and similar videos, greeting cards, and unlicensed merchandise) that derive from or are based on the ISM ROB Content. This prohibition applies regardless of whether the derivative works or materials are sold, bartered, or given away. You shall not either directly or through the use of any device, software, internet site, web-based service, or other means remove, alter, bypass, avoid, interfere with, or circumvent any copyright, trademark, or other proprietary notices marked on the Content or any digital rights management mechanism, device, or other content protection or access control measure associated with the Content including geo-filtering mechanisms. Without prior written authorization from ISM, you shall not build a business utilizing the Content, whether or not for profit.

You shall not create, recreate, distribute, incorporate in other work, or advertise an index of any portion of the Content unless you receive prior written authorization from ISM. Requests for permission to reproduce or distribute ISM ROB Content can be made by contacting Michelle Rusk in writing at: ISM Research, Institute for Supply Management, 309 W. Elliot Road, Suite 113, Tempe, AZ 85284-1556, or by emailing mrusk@ismworld.org; subject: Content Request.

ISM shall not have any liability, duty, or obligation for or relating to the ISM ROB Content or other information contained herein, any errors, inaccuracies, omissions or delays in providing any ISM ROB Content, or for any actions taken in reliance thereon. In no event shall ISM be liable for any special, incidental, or consequential damages, arising out of the use of the ISM ROB. Report On Business?, PMI?, NMI?, Manufacturing PMI?, Services PMI?, and Hospital PMI??are registered trademarks and trademarks of Institute for Supply Management?. Institute for Supply Management? and ISM? are registered trademarks of Institute for Supply Management, Inc.

About Institute for Supply Management?

Institute for Supply Management? (ISM?) serves supply management professionals in more than 90 countries. Its 50,000 members around the world manage about US$1 trillion in corporate and government supply chain procurement annually. Founded in 1915 as the first supply management institute in the world, ISM is committed to advancing the practice of supply management to drive value and competitive advantage for its members, contributing to a prosperous and sustainable world. ISM? leads the profession through the ISM? Report On Business?, its highly regarded certification programs and the ISM? Advance??Digital Platform. The ISM??Report On Business??has been issued by the association since 1931, except for a four-year interruption during World War II.

The text version of the public Hospital ISM? Report On Business? is posted on ISM?'s website at www.ismrob.org?on the fifth business day* of every month at 10:00 a.m. ET.

The next Hospital ISM? Report On Business? featuring September 2022 data will be released at 10:00 a.m. ET on Friday, October 7, 2022.

*Unless the New York Stock Exchange is closed.

Contact:

Michelle Rusk


Report On Business? Analyst


ISM?, ROB/Research Manager


Tempe, Arizona


+1 480.455.5944


Email: mrusk@ismworld.org

Institute for Supply Management logo. (PRNewsFoto/Institute for Supply Management)

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SOURCE Institute for Supply Management

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