Summary
HCA Healthcare, Inc. reported revenues of $14.971 billion for the third quarter of 2022, a decrease of 2.0% compared to $15.276 billion in the third quarter of 2021. This revenue decline was primarily driven by a 3.2% decrease in revenue per equivalent admission, influenced by a significant reduction in COVID-19 patient volumes compared to the prior year. Net income attributable to HCA Healthcare, Inc. saw a substantial decrease to $1.134 billion ($3.91 per diluted share) from $2.269 billion ($7.00 per diluted share) in the prior year's third quarter. This decrease is largely due to the absence of a significant $1.047 billion gain on sales of facilities recorded in the third quarter of 2021, alongside increased operating expenses, particularly in 'other operating expenses' which rose to 19.1% of revenues from 16.6% due to higher costs for directed payment programs, professional fees, and utilities, along with increased provisions for professional liability risks. Despite the year-over-year decline in net income, operating cash flows increased by $743 million to $3.020 billion, driven by positive changes in working capital. The company also continued its share repurchase program and declared a quarterly dividend. Management anticipates that existing liquidity and access to capital markets will be sufficient to meet its needs for at least the next 12 months.
Financial Highlights
47 data points| Revenue | $14.97B |
| Operating Expenses | $13.27B |
| Interest Expense | $446.00M |
| Net Income | $1.13B |
| EPS (Basic) | $3.97 |
| EPS (Diluted) | $3.91 |
| Shares Outstanding (Basic) | 285.96M |
| Shares Outstanding (Diluted) | 289.85M |
Key Highlights
- 1Consolidated revenues for Q3 2022 were $14.971 billion, down 2.0% year-over-year, primarily due to lower COVID-19 volumes compared to Q3 2021.
- 2Net income attributable to HCA Healthcare, Inc. decreased significantly to $1.134 billion ($3.91/share) from $2.269 billion ($7.00/share) in Q3 2021, largely due to the absence of a large gain on sale of facilities in the prior year.
- 3Revenue per equivalent admission declined by 3.2% consolidated, reflecting the impact of reduced COVID-19 cases and potentially payer mix shifts.
- 4Same facility equivalent admissions increased by 2.3%, while inpatient and outpatient surgeries also saw increases of 3.2% and 1.1% respectively, indicating underlying volume growth in non-COVID services.
- 5Operating expenses, particularly 'other operating expenses,' increased as a percentage of revenue, driven by higher costs for directed payment programs, professional fees, utilities, and increased professional liability provisions.
- 6Cash flow from operations improved significantly by $743 million to $3.020 billion in Q3 2022, demonstrating strong operational cash generation.
- 7The company repurchased $3.36 million shares of common stock in Q3 2022 and continues to focus on capital allocation, including dividends and share buybacks.