HCA, the largest publicly traded hospital chain by revenue, reported a 14.2% increase in second-quarter net income as it treated more patients and improved its payer mix thanks to insurance expansion under the healthcare reform law.
The Nashville-based chain reported $483 million in net income on revenue of $9.2 billion compared with $423 million in income on revenue of $8.5 billion during the second quarter of last year.
The results included a one-time gain of $142 million after the company underestimated the reimbursement it would receive from providing indigent care under the Texas Medicaid waiver program. HCA also added $4 million from selling facilities.
But healthcare reform was a significant factor in the results. About two-thirds of its earnings before interest, taxes, depreciation and amortization came from its core operations, with one-third from healthcare reform as more patients gained Medicaid or commercial coverage, President and CEO Milton Johnson said on an earnings call. The chain is now forecasting a 2% to 3% boost in adjusted EBITDA from Obamacare, an increase from its initial 1% to 2% projection.