Late News: HCA ready to distribute $1.75 billion to investors

HCA, Nashville, said it will distribute $1.75 billion to its investors this month using its existing credit facilities and cash on hand. Iasis Healthcare and Vanguard Health Systems already announced similar distributions. (See Jan. 25, p. 20 and the following brief.) HCA also said that fourth-quarter operating profits were up 8.6% compared with the year-ago quarter, although its net income will be down largely because it paid more taxes in 2009’s final quarter. While bad-debt expense declined, the overall cost of uncompensated care (comprising bad debt, charity care and discounts to uninsured patients) are expected to rise. As a percentage of the sum of net revenue, charity care and uninsured discounts, uncompensated care is expected to be 24.1% in 2009’s fourth quarter, vs. 23% a year ago. HCA said it expects to report revenue of $7.61 billion for the fourth quarter and $30.05 billion for the fiscal year, up 4.7% for the quarter and 5.9% for the full year. HCA will report its full results on Feb. 18.

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