In partnership with AHRMM, Institute for Supply Management (ISM) launched its first vertical ISM® Report On Business® in a critical services sector: hospitals.
The Hospital PMI™ is the first report of its kind, delving into areas that specifically cover hospital supply chains. The inaugural report was released Friday, August 7, featuring July 2020 data.
The gauge of U.S. hospital economic activity is the latest component of the ISM® Report On Business®, which was first published in 1931. Released on the fifth business day of each month, the Hospital PMI™ measures the sector in similar fashion to ISM’s manufacturing and services indexes.
The Hospital PMI™, which covers ambulatory, inpatient and nursing home-type facilities, is comprised of the 10 subindexes in the Non-Manufacturing ISM® Report On Business®, plus four others. Survey Committee respondents are asked to assess their organizations’ performance compared to the previous month — better/higher, same or worse/lower. The data is converted into diffusion indexes that measure the direction and rate for each measurement.
The four subindexes unique to the Hospital PMI™:
- Days Payable Outstanding: This index measures how fast hospitals are paying their bills.
- Technology Spend, which measures investment in such technologies as electronic health record (EHR) systems and MRI machines.
- Touchless Orders: This index gauges hospitals’ use of data standards and automation.
- Case Mix: The higher a hospital’s case mix, the sicker its patients, which means the facility will consume more supplies and perform more complex surgeries.
The Hospital PMI™ is designed for three layers of consumers:
- supply chain practitioners and clinical leadership
- policymakers and investment professionals
- health care executives
The ISM® Report On Business® represents the most reliable economic indicators available, providing guidance to supply management professionals, economists, analysts and government and business leaders. The reports have been consistently accurate in indicating the direction of the overall economy in addition to the manufacturing and non-manufacturing sectors. However, the reports should be used in conjunction with other economic measurements.
A public Hospital PMI™ report features the composite index number and readings from the four hospital-specific subindexes; a more detailed report is available for purchase. To purchase the full Hospital PMI™ report, contact Michelle Rusk, Manager, ISM Research & Analytics, at firstname.lastname@example.org.