Hospital PMI® at 56.3%
The Hospital PMI® registered 56.3 percent in April, a 5.9-percentage point increase from the March reading of 50.4 percent, indicating a 23rd consecutive month of growth. The Business Activity and New Orders Indexes increased in April compared to March. Meanwhile, the Employment Index fell into contraction territory. The Case Mix Index registered 47 percent, an increase of 4 percentage points compared to the March figure of 43 percent. The Days Payable Outstanding Index reading of 50.5 percent is down 1.5 percentage points from the 52 percent reported in March. The Technology Spend Index registered 53 percent, a 3-percentage point decrease from the March reading of 56 percent.
Hospital Survey Committee panelists generally commented on the reduction of COVID-19 patients, but the rates at which those cases were backfilled by elective procedures varied. Some indicated capacity was constrained by a lack of labor. Additionally, while a few panelists indicated improved supply availability, many reported continued shortages and back orders that strained their staffs’ capabilities. IV solutions, lab supplies and resin based products were mentioned as being in especially short supply. Inventory levels grew during the month, despite several panelists citing their facilities’ efforts to burn through personal protective equipment (PPE) stocks and acknowledging their overall inventory levels were too high. Some panelists reported a need to continue with high inventory levels due to lead-time unpredictability.
About This Report
The information compiled in this report is for the month of April 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.
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