The hospital sector in the United States continued its growth for the twentieth month in a row. According to the latest Hospital ISM® Report On Business®, the Hospital PMI® for April 2025 soared to 55 percent. Industry leaders cite mixed results, but the upward trend points toward ongoing recovery and adaptation.
Hospital PMI Rises to 55% in April 2025 Amid Mixed Sector Trends
The Hospital PMI® climbed 4 percentage points from March, marking a significant jump in economic activity. This April figure represents a notable rebound after only modest gains in March. Panelists stated that some hospitals saw an increase in elective surgeries, which resulted in lower inventory levels. Additionally, patient volumes increased due to seasonal illnesses while some facilities focused on expanding services and recruiting physicians.
Key Highlights: Employment, Orders, and Technology Spend
Several indexes contributed to April’s strong results:
- The Business Activity Index stayed in expansion for the sixth month.
- New Orders continued their positive streak, also expanding for six months.
- The Employment Index returned to growth after a brief contraction.
- The Technology Spend Index rose to 56.5 percent, up 1.5 points from March.
However, not all metrics were positive. The Case Mix Index and Touchless Orders Index dropped into contraction, showing challenges in certain areas.
Tariff Impacts and Supply Chain Challenges in Hospitals
Despite the strong PMI®, hospitals faced several operational hurdles. Concerns about rising tariffs, especially on IT-related products, drove some organizations to make bulk purchases ahead of price hikes. Others shifted major categories of business to US manufacturers where possible. Furthermore, several hospitals reported higher rates of item substitutions from distributors, mainly due to frequent supply shortages in April.
In summary, the Hospital PMI shows that the sector remains resilient and adaptable in 2025. Growth in business activity, technology investments, and employment reflect positive momentum. However, supply chain pressures and looming tariff increases signal the need for continued vigilance throughout the year.
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