HCA, the country's largest for-profit hospital chain by revenue, previewed strong second-quarter results last week, highlighting a 12.2% increase in income before taxes. It also raised its financial guidance for the year.
The Nashville-based company is the first to offer investors a glimpse into what is widely expected to be a strong quarter for hospital operators. The chain's full results are scheduled for July 29.
HCA expects to report $904 million in pretax income on $9.2 billion in revenue compared with $806 million in pretax income on $8.5 billion in revenue in the second quarter of 2013.
After seeing only a modest effect from healthcare reform in the first quarter, HCA said the law's effect on second-quarter earnings has exceeded its expectations. Its revised financial projections assume a 2% to 3% impact on earnings before interest, taxes, depreciation and amortization, an increase from 1% to 2%.
HCA also reported a 1.2% boost in same-facility admissions and a 2.2% increase in same-facility equivalent admissions. Its revenue per admission rose 5.4% on higher-acuity patients.