Hospital PMI(TM) at 63.0%; October 2020 Hospital ISM® Report On Business®
TEMPE, Ariz., Nov. 6, 2020 /PRNewswire/ -- Economic activity in the hospital subsector grew in October for the fifth consecutive month, 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((TM) )registered 63 percent in October, down 0.3 percentage point from the September reading of 63.3 percent. This was the fifth month of growth following two months of contraction. The Business Activity Index and Employment Index increased in October, and the New Orders Index decreased. The Case Mix Index increased to 61 percent, up 9.5 percentage points compared to the September reading of 51.5 percent. The Days Payable Outstanding Index decreased to 50.5 percent, down 3.5 percentage points from the September reading of 54 percent. The Technology Spend Index registered 56 percent, a decrease of 3.5 percentage points from the September reading of 59.5 percent.
Survey Committee members' comments about growth continued to be mixed. In October, there were more comments about the negative impact of COVID-19 spikes on capacity and availability of personal protective equipment (PPE) than in the previous month. Despite increased spikes, several panelists commented on growing or stable volumes of elective procedures. Availability and cost of PPE continues to be a primary concern. Last month's positive comments that shortages might be easing slightly were replaced by concerns about the impacts of the flu and year-end inventory reductions on availability. One panelist wrote, 'End of the year brings catalog consolidations from vendors, increased mergers-and-acquisitions activity, contract expirations and item shortages for things like flu supplies (which are also COVID-19 supplies). Unfortunately, COVID-19 has exacerbated all of this.' Shortages and increased use are resulting in more special requests and manual ordering," says LeMaster.
Hospital PMI
(TM)
History
Month Hospital PMI Month Hospital PMI
(TM) (TM)
Oct
2020 63.0
Apr 2020 46.9
Sep
2020 63.3
Mar 2020 63.8
Aug
2020 63.8
Feb 2020 59.4
Jul
2020 68.9
Jan 2020 57.4
Jun
2020 63.6
Dec 2019 55.9
May
2020 45.1
Nov 2019 57.6
Average for 12 months - 59.1
High - 68.9
Low - 45.1
About This Report
The information compiled in this report is for the month of October 2020.
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, New Export 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.
The Hospital PMI((TM)) 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((TM)) 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
The 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 Michelle Rusk in writing at: ISM Research, Institute for Supply Management, 309 W. Elliot Road, Suite 113, Tempe, AZ 85284-1556, or by emailing mrusk@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(®), NMI(®), Manufacturing PMI(®), Services PMI((TM)), and Hospital PMI((TM) )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(®
)Institute for Supply Management(®) (ISM(®)) serves supply management professionals in more than 90 countries. Its 50,000 members around the world manage about US$1 trillion in corporate and government supply chain procurement annually. Founded in 1915 as the first supply management institute in the world, 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 leads the profession through the ISM Report On Business(®), its highly regarded certification programs and the ISM Mastery Model(®). This report has been issued by the association since 1931, except for a four-year interruption during World War II.
The full text version of the 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 November 2020 data will be released at 10:00 a.m. ET on Monday, December 7, 2020.
*Unless the New York Stock Exchange is closed.
Contact:
Michelle Rusk
Report On Business
(R) Analyst
ISM(R), ROB/Research Manager
Tempe, Arizona
+1 480.455.5944
Email: mrusk@ismworld.org
View original content to download multimedia:http://www.prnewswire.com/news-releases/hospital-pmi-at-63-0-october-2020-hospital-ism-report-on-business-301167533.html
SOURCE Institute for Supply Management
