In April 2023, the Hospital Purchasing Managers’ Index registered 55.3%, indicating growth that marks the 35th consecutive month where there was expansion in the sub-sector. This news was shared by the Institute for Supply Management Hospital Business Survey Committee.
Hospital PMI indicates 35th consecutive month of growth
The PMI report from April 2023 showed a considerable increase in the overall score, growing from 53.4% in March to 55.3%. The Business Activity and New Orders Indexes also saw improvement, suggesting strong growth momentum. Meanwhile, the Employment Index remained in growth territory, providing additional positive news for the sector.
Concerns remain over shortages, recalls, and inflation
Many respondents of the survey shared their sentiments on supply disruptions caused by back orders and shortages. They also highlighted that product recalls caused disruption, making it harder to maintain current performance. Additionally, inflation remains a concern, with a third of respondents mentioning layoffs or hiring freezes due to margin pressures. However, the touchless orders index that returned to expansion territory gave some optimism to those who expressed these concerns.
Hospitals adapt to reduce inventory levels and improve performance
Many facilities are determined to improve day payable outstanding performance and reduce inventory levels with conscious efforts. This trend is being reflected across the sector, with reports suggesting that hospitals are making a concerted effort to manage their inventory strategically. Respondents also confirmed that volumes remained strong, particularly for surgeries, and hospitals were adapting to increase admissions, despite weather events such as tornadoes being mentioned as both a source of supply disruption and a reason for increased admissions.
Overall, the latest report shows that the hospital sector is growing, and although there are concerns, hospitals are strategizing how to deal with them effectively.