HCA, Nashville, said it expects to increase its capital budget in 2010 by about $200 million to $1.5 billion even as the company continues the conservative operating approach it took in 2009 in the face of a slow economy.
HCA plans to increase capital budget
HCA spent about $1.32 billion on capital projects in 2009, including several multiyear projects that were completed, said Richard Bracken, chairman and CEO. “The good news for us is, while we have a $1.5 billion budget for 2010, we have a lot less committed dollars than we’ve had in recent years,” Bracken said, “which gives us a lot of flexibility to think about the marketplace (and) take advantage of opportunities, or tighten up if we need to.”
One such opportunity came this week. MedCath Corp., Charlotte, N.C., announced Wednesday that HCA’s joint venture in Austin, Texas, has agreed to acquire Heart Hospital of Austin, owned by MedCath and physician investors, for $83.6 million.
As HCA revealed last month, net income for the quarter was $216 million, down 21.7% from the year-ago quarter because of higher tax payments. Revenue increased 4.7%, to $7.61 billion. For the year, net income was $1.05 billion, up nearly 57%, and revenue increased 5.9%, to $30.01 billion.
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