Hospital PMI® at 62.5%

December 2023 Hospital ISM® Report On Business®

(Tempe, Arizona) — Economic activity in the hospital subsector grew in December for the fourth consecutive month after contracting twice in the previous four-month period, with 35 consecutive months of growth prior to that, 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 62.5 percent in December, a 2.7-percentage point increase from the November reading of 59.8 percent, indicating a fourth consecutive month of growth after a contraction in August. The Business Activity Index expanded for the fourth consecutive month. The New Orders Index remained in expansion for the fourth straight month, and the Employment Index also remained in expansion territory. The Supplier Deliveries Index remained in expansion (which indicates slower delivery performance). The Case Mix Index remained in expansion territory, registering 52.5 percent, a decrease of 1.5 percentage points compared to the November figure of 54 percent. The Days Payable Outstanding Index expanded for the third consecutive month at 52.5 percent, the same reading reported in November. The Technology Spend Index reading of 53 percent is a decrease of 4 percentage points compared to the 57 percent recorded in November. The Touchless Orders Index registered 51 percent, down 0.5 percentage point from the 51.5 percent reported in November.”

LeMaster continues, “Inflation continued as the top-of-mind concern among Hospital Business Survey Committee panelists. They indicated suppliers were signaling that supply and pharmaceutical prices would increase in the new year, while labor costs remain high. Cost reduction was mentioned as a major area of focus for 2024. Volume was strong and driven by a combination of respiratory illness — flu, COVID-19 and respiratory syncytial virus (RSV) — and an increase in elective procedures. Employment remained in growth mode, with panelists indicating job fairs and recruitment efforts continued to be successful. Retirements and voluntary turnover remained a concern. Comments about back orders and product shortages increased, especially related to needles and syringes. There was concern that the reduction of shipping through the Panama Canal and slowdowns at the Mexico border would exacerbate the situation.”


Month Hospital PMI®
Dec 2023 62.5
Nov 2023 59.8
Oct 2023 52.1
Sep 2023 57.0
Aug 2023 47.5
Jul 2023 53.3
Month Hospital PMI®
Jun 2023 51.5
May 2023 49.1
Apr 2023 55.3
Mar 2023 53.4
Feb 2023 53.5
Jan 2023 52.5

About This Report

The information compiled in this report is for the month of December 2023.

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.

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About Institute for Supply Management®

Institute for Supply Management® (ISM®) is the first and leading not-for-profit professional supply management organization worldwide. Its community of more than 50,000 in more than 100 countries manage about US$1 trillion in corporate and government supply chain procurement annually. Founded in 1915 by practitioners, 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 empowers and leads the profession through the ISM® Report On Business®, its highly-regarded certification and training programs, corporate services, events, and assessments. The ISM® Report On Business®, Manufacturing, Services, and Hospital, are three of the most reliable economic indicators available, providing guidance to supply management professionals, economists, analysts, and government and business leaders. For more information, please visit:

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

The next Hospital ISM® Report On Business® featuring January 2024 data will be released at 10:00 a.m. ET on Wednesday, February 7, 2024.

*Unless the New York Stock Exchange is closed.

Please note that you or the organization you represent may not create, recreate, distribute, incorporate in other work, or advertise an index or any portion of the ISM® Report On Business® – Manufacturing (PMI®), Services (PMI®) and Hospital (PMI) content unless you receive prior written authorization from ISM. Requests for permission to reproduce or distribute ISM ROB Content can be made by contacting us in writing at:

ISM Research
Institute for Supply Management

309 W. Elliot Road ,
Suite 113
Tempe, AZ 85284

or by emailing us at (Subject: Content Request)