10-KPeriod: FY2019

HCA Healthcare, Inc. Annual Report, Year Ended Dec 31, 2019

Filed February 20, 2020For Securities:HCA

Summary

HCA Healthcare, Inc. (HCA) reported strong financial performance for the year ended December 31, 2019, with revenues reaching $51.3 billion, a significant increase from the previous year, driven by higher patient volumes and improved revenue per equivalent admission. The company operated 184 hospitals and 123 freestanding surgery centers across 21 states and England, indicating substantial operational scale. Profitability remained robust, though net income attributable to HCA Healthcare, Inc. saw a slight decrease year-over-year, partly due to higher losses on debt retirement compared to the prior year. Despite facing ongoing industry challenges such as regulatory changes and competitive pressures, HCA demonstrated a commitment to growth through strategic initiatives including expanding its presence in existing markets and pursuing acquisitions. The company's financial health is underpinned by a diversified revenue base, including significant contributions from managed care and other private insurers, as well as government programs like Medicare and Medicaid. HCA's focus on operational efficiency, physician alignment, and quality of care positions it to navigate the evolving healthcare landscape and continue delivering value to its shareholders.

Financial Highlights

49 data points
Beta

Revenue

$51.34B

Net Income

$3.50B

6.8% Net Margin

EPS (Diluted)

$10.07

Total Assets

$45.06B

Cash & Equivalents

$621.00M

Free Cash Flow

$3.44B

Financial Statements
Beta
Revenue$51.34B
Operating Expenses$46.09B
Interest Expense$1.82B
Net Income$3.50B
EPS (Basic)$10.27
EPS (Diluted)$10.07
Shares Outstanding (Basic)341.21M
Shares Outstanding (Diluted)348.23M

Key Highlights

  • 1HCA Healthcare reported revenues of $51.3 billion for the year ended December 31, 2019, marking a 10% increase from the prior year.
  • 2The company operated 184 hospitals and 123 freestanding surgery centers across 21 states and England, demonstrating significant geographic reach.
  • 3Consolidated admissions and equivalent admissions increased by 5.2% and 6.6% respectively, indicating strong patient volume growth.
  • 4Managed care and other insurers represented the largest portion of revenue at 51.6%, followed by Medicare at 21.0%.
  • 5The company repurchased approximately 7.95 million shares of common stock in 2019.
  • 6Interest expense increased to $1.82 billion in 2019, largely due to an increase in the average debt balance.
  • 7The company declared and paid dividends totaling $1.60 per share in 2019.

Frequently Asked Questions

HCA Healthcare's revenue growth in 2019 was primarily driven by a combination of a 3.2% increase in revenue per equivalent admission and a 6.6% increase in equivalent admissions, reflecting both higher patient volumes and improved revenue capture per patient.

HCA Healthcare has a diversified revenue base. For the year ended December 31, 2019, managed care and other insurers accounted for 51.6% of revenues, Medicare for 21.0%, Managed Medicare for 12.6%, Managed Medicaid for 4.8%, Medicaid for 3.1%, and other sources for 6.9%.

HCA Healthcare demonstrated a commitment to returning value to shareholders in 2019. The company repurchased approximately 7.95 million shares of its common stock and paid dividends totaling $1.60 per share for the year. Future capital allocation decisions, including dividends and share repurchases, are subject to Board of Directors' approval and market conditions.

Key risks identified include HCA's substantial leverage, which could impact its ability to raise capital and service debt. Other significant risks involve changes in government healthcare programs (Medicare/Medicaid reimbursement), increasing labor costs due to competition for staffing, potential cybersecurity incidents, and the ongoing uncertainty surrounding healthcare reform, including the future of the Affordable Care Act.