TEMPE, Ariz., Aug. 6, 2021 /PRESSDAILY.COM/ — Economic activity in the hospital subsector grew in July for the 14th 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 62.8 percent in July, decreasing 0.3 percent­age point from the June reading of 63.1 percent, indicating a 14th consecutive month of growth. The Business Activity Index increased in July compared to June. The New Orders Index decreased slightly, while the Employment Index fell into contraction in July. The Case Mix Index increased to 53 percent, up 1.5 points compared to the June reading of 51.5 percent. The Days Payable Outstanding Index registered 53.0 percent, a 6.5-percentage point increase from the June reading of 46.5 percent. The Technology Spend Index registered 53 percent, a decrease of 4.5 percentage points from the June reading of 57.5 percent.”

LeMaster continues, “In July, business activity was at its highest level in 2021. Business Survey Committee panelists reported continuing pent-up demand for procedures that had been deferred during the pandemic, as well as a resurgence in COVID-19 cases. The brief rebound in employment during June did not last, and panelists commented they were having difficulty recruiting both clinical and nonclinical staff. Panelists indicated that physician shortages and vacations impacted order backlogs. Supply shortages and long delivery times continue to be problematic. Although the numbers did not show an increase in inventory levels, comments such as ‘having to carry more inventory to cover longer lead times experienced due to consolidating deliveries’ and ‘increasing periodic automatic replenishment (PAR) levels due to supply chain disruptions’ were common.”

Hospital PMI History


Month

Hospital PMI

Month

Hospital PMI

Jul 2021

62.8

Jan 2021

55.8

Jun 2021

63.1

Dec 2020

62.6

May 2021

61.3

Nov 2020

62.6

Apr 2021

61.9

Oct 2020

63.0

Mar 2021

58.8

Sep 2020

63.3

Feb 2021

57.5

Aug 2020

63.8

Average for 12 months – 61.4

High – 63.8

Low – 55.8

About This Report
The information compiled in this report is for the month of July 2021.

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 [email protected]; 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 PMIare 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 Mastery Model®. This report has been issued by the association since 1931, except for a four-year interruption during World War II.

The full text version of the 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 August 2021 data will be released at 10:00 a.m. ET on Tuesday, September 7, 2021.

*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: [email protected]

SOURCE Institute for Supply Management

Related Links

https://www.ismworld.org

Author

Generosa Delgado has been a health writer for Press Daily since 2018. Previously, she was a health and medical writer for The Los Angeles Times. Generosa has experience working as a freelance journalist since 2016, and before that as a staff writer for Health Magazine.