Summation
- The Technology Spend Index reading of 57 percent is an increase of 3 percentage points compared to the 54 percent recorded in February.
- The New Orders Index remained in expansion for the seventh straight month, and the Employment Index also stayed in expansion territory.
- The Case Mix Index registered 51 percent, a decrease of 1 percentage point compared to the February figure of 52 percent.
Hospital PMI
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 52.3 percent in March, a 4.3-percentage point decrease from the February reading of 56.6 percent, indicating a seventh consecutive month of growth after a contraction in August.
Business Activity Index
The Business Activity Index expanded for the seventh consecutive month. The New Orders Index remained in expansion for the seventh straight month, and the Employment Index also stayed in expansion territory. The Supplier Deliveries Index remained in expansion (which indicates slower delivery performance). The Case Mix Index registered 51 percent, a decrease of 1 percentage point compared to the February figure of 52 percent. The Days Payable Outstanding Index contracted in March after expanding for five consecutive months, registering 49.5 percent, down 1 percentage point from the 50.5 percent reported in February. The Technology Spend Index reading of 57 percent is an increase of 3 percentage points compared to the 54 percent recorded in February. The Touchless Orders Index registered 52.5 percent, up 1.5 percentage points from the 51 percent reported in February.”
LeMaster continues,
“The revenue issues caused by the Change Healthcare cybersecurity breach were top of mind for several Hospital Business Survey Committee respondents. The incident impacted health systems of all sizes. Although the Days Payable Outstanding Index contracted slightly in March, panelists from affected systems indicated expanded payment terms will be sought to help cope with cash flow issues. There was no consensus on volume growth in the month. Some respondents indicated surgical volumes were down at their facilities, while others indicated volumes were steady. There were multiple mentions of mergers and acquisitions used to increase volumes versus organic growth rates. Back orders and product substitutions continued but received less attention than in previous months. Some panelists noted ongoing efforts to replace contract labor with permanent employees, while there was also mention of continued pressures to limit hiring whenever possible.”
|
Hospital PMI® History |
|||
|
Month |
Hospital PMI® |
Month |
Hospital PMI® |
|
Mar 2024 |
52.3 |
Sep 2023 |
57.0 |
|
Feb 2024 |
56.6 |
Aug 2023 |
47.5 |
|
Jan 2024 |
61.5 |
Jul 2023 |
53.3 |
|
Dec 2023 |
62.5 |
Jun 2023 |
51.5 |
|
Nov 2023 |
59.8 |
May 2023 |
49.1 |
|
Oct 2023 |
52.1 |
Apr 2023 |
55.3 |
|
Average for 12 months – 54.9 High – 62.5 Low – 47.5 About This ReportThe information compiled in this report is for the month of March 2024.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 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 ContentThe 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 Rose Marie Goupil in writing at: ISM Research, Institute for Supply Management, 309 W. Elliot Road, Suite 113, Tempe, AZ 85284-1556, or by emailing rgoupil@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®, 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. |
|||
