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Hospital PMI® at 61.5%; January 2024 Hospital ISM® Report On Business®TEMPE, Ariz., Feb. 7, 2024 /PRNewswire/ -- Economic activity in the hospital subsector grew in January for the fifth 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 61.5 percent in January, a 1-percentage point decrease from the December reading of 62.5 percent, indicating a fifth consecutive month of growth after a contraction in August. The Business Activity Index expanded for the fifth consecutive month. The New Orders Index remained in expansion for the fifth 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 57 percent, an increase of 4.5 percentage points compared to the December figure of 52.5 percent. The Days Payable Outstanding Index expanded for the fourth consecutive month at 52.5 percent, matching December's figure. The Technology Spend Index reading of 57 percent is an increase of 4 percentage points compared to the 53 percent recorded in December. The Touchless Orders Index registered 50.5 percent, down 0.5 percentage point from the 51 percent reported in December." LeMaster continues, "Respiratory cases were the primary volume driver in January, with a reduction in elective surgeries. This is consistent with previous years, as the annual reset of patient deductibles has impacted utilization. Inflationary pressures continued to have a negative impact on hospital margins. The impact on rural and stand-alone hospitals has been more extreme. While some panelists indicated their organizations were managing, others mentioned hospital and clinic closures and staff layoffs. Most comments related to supplier deliveries were negative, with mentions of increased shortages and back orders as well as concerns about shipping timelines due to the conflict in the Red Sea. The trend of converting contract labor to permanent staff continued. The slower growth indicated by the Employment Index was influenced by some organizations' planned staff reductions. The increase in the Case Mix Index was consistent with the high volumes experienced in December."
About This Report 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 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 [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®, 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® 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 February 2024 data will be released at 10:00 a.m. ET on Thursday, March 7, 2024. *Unless the New York Stock Exchange is closed.
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