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10-KPeriod: FY2013

HCA Healthcare, Inc. Annual Report, Year Ended Dec 31, 2013

Filed February 26, 2014For Securities:HCA

Summary

HCA Healthcare, Inc. (HCA) reported solid financial performance for the fiscal year ended December 31, 2013. The company generated revenues of $34.182 billion, reflecting a 3.5% increase from the prior year, driven by a 3.1% rise in revenue per equivalent admission and a 0.4% increase in equivalent admissions. Despite a slight increase in the provision for doubtful accounts and higher self-pay revenue deductions, the company demonstrated operational resilience. Operationally, HCA experienced modest growth in admissions and surgical volumes across its extensive network of 165 hospitals and 115 freestanding surgery centers. The company continues to navigate a complex healthcare landscape, including the ongoing implementation of the Affordable Care Act (ACA) and shifts in payer mix. HCA's strategic focus remains on growing its presence in existing markets, enhancing clinical and satisfaction measures, recruiting physicians, leveraging its scale for profitability, and pursuing disciplined development. Financially, HCA maintained a strong liquidity position with significant cash flows from operations, although these declined slightly year-over-year. The company also managed its substantial debt load, with total debt standing at $28.376 billion. Key areas of focus for investors include HCA's ability to manage rising operating costs, collectability of patient receivables, and the evolving regulatory environment impacting reimbursement rates.

Financial Statements
Beta
Revenue$34.18B
Interest Expense$1.85B
Net Income$1.56B
EPS (Basic)$3.50
EPS (Diluted)$3.37
Shares Outstanding (Basic)445.07M
Shares Outstanding (Diluted)461.91M

Key Highlights

  • 1HCA Healthcare reported revenues of $34.182 billion for the year ended December 31, 2013, an increase of 3.5% from the prior year.
  • 2Net income attributable to HCA Holdings, Inc. was $1.556 billion, or $3.37 per diluted share, a slight decrease from $1.605 billion, or $3.49 per diluted share, in 2012.
  • 3Consolidated admissions increased by 0.2% year-over-year, with same-facility admissions showing a marginal increase of 0.1%.
  • 4The company operated 165 hospitals and 115 freestanding surgery centers across 20 states and England as of December 31, 2013.
  • 5The provision for doubtful accounts increased by $88 million to $3.858 billion, reflecting challenges in collecting patient receivables.
  • 6Salaries and benefits, a significant cost driver, represented 45.8% of revenues in 2013.
  • 7HCA's debt remained substantial, totaling $28.376 billion at year-end 2013, though interest expense as a percentage of revenue remained manageable.

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