10-KPeriod: FY2018

HCA Healthcare, Inc. Annual Report, Year Ended Dec 31, 2018

Filed February 21, 2019For Securities:HCA

Summary

HCA Healthcare, Inc. (HCA) reported strong financial performance for the fiscal year ended December 31, 2018, demonstrating robust revenue growth and improved profitability. Total revenues increased by 7.0% to $46.677 billion, driven by a combination of increased patient volumes and higher revenue per equivalent admission. Net income attributable to HCA Healthcare, Inc. saw a significant rise of 70.9% to $3.787 billion, partly due to a substantial one-time tax benefit related to the Tax Cuts and Jobs Act, as well as gains from facility sales. The company's operational strategy remains focused on growing its presence in existing markets, enhancing clinical quality and patient satisfaction, strategic physician recruitment, leveraging its scale, and pursuing disciplined development. HCA's strong operational performance is supported by growth in admissions, surgeries, and emergency room visits across its network of 179 hospitals and 123 freestanding surgery centers. The company also continues to manage its significant debt load effectively, with a focus on operational efficiency and strategic investments for long-term value creation.

Financial Highlights

47 data points
Beta

Revenue

$46.68B

Net Income

$3.79B

8.1% Net Margin

EPS (Diluted)

$10.66

Total Assets

$39.21B

Cash & Equivalents

$502.00M

Free Cash Flow

$3.19B

Financial Statements
Beta
Revenue$46.68B
Operating Expenses$41.34B
Interest Expense$1.75B
Net Income$3.79B
EPS (Basic)$10.90
EPS (Diluted)$10.66
Shares Outstanding (Basic)347.30M
Shares Outstanding (Diluted)355.30M

Key Highlights

  • 1HCA Healthcare reported a 7.0% increase in total revenues, reaching $46.677 billion in 2018, driven by volume growth and improved revenue per equivalent admission.
  • 2Net income attributable to HCA Healthcare, Inc. surged by 70.9% to $3.787 billion ($10.66 per diluted share) in 2018, benefiting from a tax rate reduction and facility sale gains.
  • 3The company operated 179 hospitals and 123 freestanding surgery centers across 20 states and England as of December 31, 2018.
  • 4Consolidated admissions increased by 3.5% and same-facility admissions grew by 2.5% in 2018 compared to 2017.
  • 5Operating expenses, including salaries, benefits, and supplies, increased proportionally with revenue, indicating disciplined cost management.
  • 6HCA continued its share repurchase program, demonstrating a commitment to returning capital to shareholders.
  • 7The company maintained a strong liquidity position with significant cash flows from operating activities ($6.761 billion in 2018) and available credit facilities.

Frequently Asked Questions

In 2018, HCA Healthcare reported a 7.0% increase in total revenues to $46.677 billion. Net income attributable to HCA Healthcare, Inc. rose significantly by 70.9% to $3.787 billion, or $10.66 per diluted share. This increase was influenced by gains from facility sales and a substantial tax benefit from the Tax Cuts and Jobs Act.

Patient volumes showed positive trends in 2018. Consolidated admissions increased by 3.5% and same-facility admissions grew by 2.5% compared to 2017. Both inpatient and outpatient surgical volumes also saw increases.

HCA Healthcare's primary strategies include growing its presence in existing markets, achieving industry-leading clinical and satisfaction measures, recruiting and employing physicians, leveraging its scale and market positions, and pursuing a disciplined development strategy, which encompasses both organic growth and strategic acquisitions.

A significant portion of HCA's revenue is derived from government programs like Medicare and Medicaid, which are subject to regulatory changes. In 2018, Medicare and Medicaid programs accounted for approximately 40.9% of the company's revenues. Management continuously monitors these programs for potential impacts on reimbursement.