The herky-jerky continues. Hospital PMI was reported yesterday at 57. It is a far cry from the 50.4 reported in March, coincident with some earnings surprises, but closer to a more "normal" 60-ish. According to ISM's press release, case mix dropped to 52 but panelist reported volume increases associated with respiratory viruses. Labor headwinds remain and placing constraints on volumes. We know from the macro data that situation continues to improve.
Meanwhile, health systems are reporting payer negotiations that start at higher than normal numbers - see InterMountain's commentary at JPM - and those asks are likely to persist for years. Great for the provider side of the zero sum game that is health care.
Enjoy your JPMHC Day and let me know what you think!
Emily Evans
Managing Director – Health Policy
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