HCA Healthcare reaches $17.5 billion in revenue in Q2

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Nashville, Tennessee-based HCA Healthcare brought in close to $1.46 billion in income and generated $17.5 billion in revenue during the second quarter of 2024 – both improvements over its Q2 2023 performance, during which net income was $1.19 billion and revenue was $15.86 billion.

According to its quarterly earnings call, HCA's income translated to $5.53 per diluted share, which puts it ahead of estimates of $4.93 earnings per share heading into the quarter. HCA also beat out revenue projections by about a half billion dollars.

CEO Sam Hazen said during the call that results for the second quarter were "positive across the board," reflecting a strong demand for HCA's services.

Due to the strong performance, the company is forecasting 2024 EPS guidance of $21.60 to $22.80 per share, both improvements over its prior guidance.

WHAT'S THE IMPACT?

HCA, which owns the largest chain of ambulatory surgical centers in the U.S., ended the quarter with 123 surgical centers – down three from Q2 2023, but up two from the first quarter of this year. Outpatient revenues comprised 38.2% of its patient-based earnings during the quarter.

Overall, its ASCs saw a 1.8% decrease in the total number of outpatient surgery cases, landing at just shy of 259,000. Hazen said the declines were mostly due to lower volumes and Medicaid and self-pay categories. 

"Other volume categories including cardiac procedures and inpatient rehab services experienced strong growth," he said.

Hazen added that payer mix improved from a year ago, with 36.2% of equivalent admissions comprised of commercial volumes. Adjusted EBITDA rose 16% from last year's Q2 to hit $3.5 billion, which executives said included a modest benefit from Medicaid supplemental payments.

HCA logged cash and cash equivalents of $831 million, debt of $40.9 billion and total assets of $57.4 billion in the quarter, with capital expenditures, minus acquisitions, totaling $1.28 billion. Cash flow from operating activities reached $1.97 billion in the quarter.

THE LARGER TREND

Earlier this year HCA signaled that it would make $5 billion in capital investments this year, with a large concentration in outpatient facilities.

Allocations between inpatient, outpatient and technology will be consistent with past years, Hazen said, adding that consistent allocation of capital has yielded strong returns.

In May, HCA Florida Healthcare said construction is now underway on the new $231 million HCA Florida Gainesville Hospital, the latest hospital planned as part of HCA's planned expansion across the state.

The new hospital and medical office building, targeted to open in early 2026, will build on the existing HCA Florida Gainesville Emergency Room, HCA said. 

The hospital will include a surgical services department, a catheterization lab, 60 medical/surgical beds, a 30-bed inpatient rehabilitation unit, and a full complement of imaging services available for the community. It's anticipated to house more than 200 colleagues, including physicians, other healthcare professionals and support personnel.
 

Jeff Lagasse is editor of Healthcare Finance News.
Email: jlagasse@himss.org
Healthcare Finance News is a HIMSS Media publication.