HCA more than doubles Q3 earnings

Hospital giant reports $7.5 billion in revenue on strong volumes

Email | Print By Erin Lawley

HCA reported the results of its third quarter this morning, including net income of $196 million – more than double the $86 million it brought in during the third quarter of 2008 – on a 7.6 percent increase in revenue.

The results were driven by strong patient volumes: On a same-store basis, admissions were up 2.7 percent, inpatient surgeries rose 1.9 percent and emergency-department visits jumped 11.1 percent.

Although salaries, benefits and other operating expenses increased from $5.1 billion to $5.4 billion, they declined as a percentage of revenue by 2.2 percent compared to the third quarter of 2008.

The provision for doubtful accounts increased $910 million, or 12.1 percent of revenue, compared to $819 million in the third quarter of 2008, or 11.7 percent of revenues. Charity care and uninsured discounts reached $1.28 billion, and same-facility uninsured admissions was up 8.2 percent, accounting for 7 percent of total admissions in the quarter, compared to 6.6 percent of same-facility admissions in the third quarter of 2008.

For the nine months ended Sept. 30, cash flow from operating activities increased by $900 million to $2.3 billion due to a $513 million increase in net income and $347 million improvement in changes in operating assets and liabilities and the provision for doubtful accounts.

At the end of the third quarter, the company’s balance sheet had cash and cash equivalents of $443 million, total debt of $25.9 billion, and total assets of $24.1 billion.

HCA, which went private in a 2006 leveraged buyout, ran 163 hospitals and 105 freestanding surgery centers at the end of the quarter.