HCA: $3.5B in capital projects still in pipeline following Mission acquisition

Close-up of handshake between person in suit and person in business shirt.
HCA's CEO said the planned investments will further build inpatient and outpatient capacity within its local healthcare systems. (Getty Images/FS-Stock)

Even after a buying spree that includes the $1.5 billion acquisition of Mission Health, HCA Healthcare officials told analysts they have more than $3.5 million of capital spending in the pipeline they expect to bring online within the next two years.

Speaking during a fourth-quarter earnings call on Tuesday, Sam Hazen, the newly minted CEO of the Nashville, Tennessee-based health system, said the planned investments will further build inpatient and outpatient capacity within its local healthcare systems.

"These strategic investments in our business to expand our networks and improve our clinical capabilities are making it easier for patients to get high quality, convenient patient care in an HCA facility," Hazen said during a fourth-quarter call with analysts.

Conference

13th Partnering with ACOS & IDNS Summit

This two-day summit taking place on June 10–11, 2019, offers a unique opportunity to have invaluable face-to-face time with key executives from various ACOs and IDNs from the entire nation – totaling over 3.5 million patients served in 2018. Exclusively at this summit, attendees are provided with inside information and data from case studies on how to structure an ACO/IDN pitch, allowing them to gain the tools to position their organization as a “strategic partner” to ACOs and IDNs, rather than a merely a “vendor.”

RELATED: HCA CEO R. Milton Johnson will step down

Already, HCA was coming off the 19th straight quarter of same facility inpatient admissions, reporting earnings of about $1.1 billion in the fourth quarter, or about $3.01 per diluted share, more than double the $474 million, or $1.30 per diluted share, in earnings it reported in the fourth quarter of 2017. The company announced its revenues in the fourth quarter reached $12.3 billion, up more than 6% compared to $11.6 billion in the fourth quarter of 2017.

HCA reported its cash flows from operating activities were $2.175 billion, compared to $1.734 billion in the prior year’s fourth quarter. Its same facility equivalent admissions and same facility admissions increased 1.9% and its same facility revenue per equivalent admission increased 4.4%.

During the call, officials announced a cash dividend of 40 cents per share to their shareholders. 

HCA reported $3.8 billion in earnings on $46.7 billion in revenue for the year ending Dec. 31, 2018, compared to $2.2 billion in earnings on $43.6 billion in revenue for the same period in 2017. Results for the year include gains on sales of facilities of $428 million, or $0.91 per diluted share.

Suggested Articles

Centene Corporation posted a significant boost in earnings and revenue over the first quarter of 2019 compared to a year prior.

Medicare’s Hospital Insurance Trust Fund is set to run out in the next seven years, according to a new report. 

Following the rollout of the ACA, emergency department visits and hospitalizations by uninsured patients have decreased, a new study shows.