HCA Healthcare, Inc. Quarterly Report for Q2 Ended Jun 30, 2014

Summary

HCA Healthcare, Inc. (HCA) reported a strong second quarter for 2014, with revenues increasing by 9.2% year-over-year to $9.230 billion. This growth was driven by a 5.4% increase in revenue per equivalent admission and a 3.6% increase in equivalent admissions. Net income attributable to HCA Holdings, Inc. rose by 14.3% to $483 million, or $1.07 per diluted share. The company benefited from a significant increase in Medicaid revenues related to the Texas Medicaid Waiver Program and a reduction in the provision for doubtful accounts, attributed to more patients gaining coverage through health insurance exchanges and Medicaid expansion. Despite a substantial $226 million loss on debt retirement, the company demonstrated improved operational performance and solid revenue growth.

Key Highlights

• 1Revenues increased 9.2% to $9.230 billion in Q2 2014 compared to Q2 2013, driven by higher revenue per equivalent admission and increased patient volumes.
• 2Net income attributable to HCA Holdings, Inc. grew by 14.3% to $483 million ($1.07 per diluted share) in Q2 2014, compared to $423 million ($0.91 per diluted share) in Q2 2013.
• 3The provision for doubtful accounts decreased by $295 million, reflecting a favorable shift in patient insurance coverage due to health insurance exchanges and Medicaid expansion.
• 4A one-time loss of $226 million ($0.32 per diluted share) was recorded due to the retirement of debt in Q2 2014.
• 5Operating expenses as a percentage of revenue improved slightly, with salaries and benefits and supplies showing favorable trends.
• 6The company repurchased approximately 14.6 million shares of common stock during the quarter, demonstrating a commitment to shareholder returns.
• 7Capital expenditures for the first six months of 2014 were $913 million, with full-year 2014 capital expenditure estimates approaching $2.2 billion, indicating continued investment in facilities.

Frequently Asked Questions