Economic activity in the hospital subsector grew in October for the 14th consecutive month after contracting twice in the previous four-month period, with 35 consecutive months of growth prior to that, according to the Institute for Supply Management (ISM) hospital Report On Business. The report was issued by Nancy LeMaster, chair of the ISM hospital business survey committee.
“The hospital PMI registered 51.9% in October, a 3.1-percentage point decrease from the September reading of 55%, indicating a 14th consecutive month of growth. October’s hospital PMI reading is the lowest since a contraction in August 2023 (47.5%). The business activity index moved into contraction territory after expanding for 13 straight months. The new orders index returned to contraction after two consecutive months of expansion, and the employment index also moved back into contraction territory in October after expanding for five straight months. The supplier deliveries index remained in expansion (which indicates slower delivery performance) for the 14th consecutive month. The prices: pharmaceuticals index went into contraction (or ‘decreasing’) territory for the first time since hospital ISM Report On Business data collection began in April 2018,” LeMaster said. “The case mix index expanded in October after contracting in the previous month and expanding for four consecutive months prior to that, registering 52%, 3.5 percentage points higher than September’s figure of 48.5%. The days payable outstanding index returned to contraction in October, registering 45.5%, down 6.5 percentage points from the 52% reported in September. The technology spend index reading of 61% is an increase of 4.5 percentage points compared to the 56.5% recorded in September. The touchless orders index returned to expansion territory in October, registering 50.5%, up 3.5 percentage points from the 47% reported in September.”
“Two hurricanes in less than two weeks in late September and early October reminded everyone of the fragility of the health-care supply chain. The Baxter IV solutions plant in North Carolina was significantly damaged, and the B. Braun plant in Florida sustained minor damage. In addition, supply deliveries were interrupted, and there were widespread elective procedure cancellations,” LeMaster said. “The federal government is working to quickly provide emergency authorization for importation of IV fluids from other countries. The North Carolina facility also manufactured peritoneal dialysis fluids and bags used by pharmacies to compound fluids. It is unclear how much of the reduction in the employment index was related to a decrease in demand versus budget constraints and turnover.”
