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September 08, 2016 12:00 AM

HCA pouring $2.7 billion into hub hospitals and markets

Dave Barkholz
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    HCA Holdings plans to spend $2.7 billion this year to expand patient access in its hub markets as a two-year volume bonanza from the Affordable Care Act and improved economy starts to taper, HCA CFO Bill Rutherford told analysts Thursday at the Baird 2016 Global Healthcare Conference.

    Nashville-based HCA, the nation's largest investor-owned hospital chain, is developing more than a dozen free-standing emergency rooms in its markets through 2017 to go along with the 57 already open, Rutherford said.

    HCA also is adding ambulatory surgery centers, urgent-care centers, diagnostic centers and new hospital wings to provide convenience and the right setting for the severity of illnesses and injuries, he said.

    HCA has grown overall volumes for nine consecutive years, Rutherford said. The company's 169 hospitals and other facilities have done a brisk business over the past two years especially, benefiting from a growing economy, Medicaid expansions in some states and the newly insured coming from the Affordable Care Act exchanges, he said.

    Healthcare demand has been up 4% and more across the country. But that is likely to taper to a more traditional 2% rate, Rutherford estimates. And HCA wants to be ready to capture those patients at any point in the continuum by having the facilities in place when patients come.

    Meantime, HCA has mostly eschewed hospital buying to concentrate on building out the delivery networks around its big urban hubs, which include Miami, Dallas, Houston, Tampa, San Antonio, Nashville and Richmond, Va.

    Rutherford said HCA is either the market share leader in 13 of its biggest markets or the market's second-largest provider by concentrating on its hub strategy.

    He said HCA last year approved a three-year capital spending budget of $7.7 billion. The company is seeing a 16% return on invested capital, while the cost of that investment is 5%, he said.

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      • Transformation
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        • Midwest
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    • Blogs
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      • HIMSS 2023
    • Opinion
      • Breaking Bias
      • Commentaries
      • Letters
      • From the Editor
    • Events & Awards
      • Awards
        • Nominate/Eligibility
        • 100 Most Influential People
        • 50 Most Influential Clinical Executives
        • Best Places to Work in Healthcare
        • Excellence in Governance
        • Health Care Hall of Fame
        • Healthcare Marketing Impact Awards
        • Top 25 Emerging Leaders
        • Top Innovators
        • Diversity in Healthcare
          • - Luminaries
          • - Top 25 Diversity Leaders
          • - Leaders to Watch
        • Women in Healthcare
          • - Luminaries
          • - Top 25 Women Leaders
          • - Women to Watch
      • Conferences
        • Digital Health Transformation Summit
        • ESG: The Implementation Imperative Summit
        • Leadership Symposium
        • Social Determinants of Health Symposium
        • Women Leaders in Healthcare Conference
      • Galas
        • Best Places to Work Awards Gala
        • Health Care Hall of Fame Gala
        • Top 25 Diversity Leaders Gala
        • Top 25 Women Leaders Gala
      • Virtual Briefings
        • - Hospital of the Future
        • - Value Based Care
        • - Hospital at Home
        • - Workplace of the Future
        • - AI and Digital Health
        • - Future of Staffing
        • - Hospital of the Future (Fall)
      • Webinars
    • Multimedia
      • Podcast - Beyond the Byline
      • Sponsored Podcast - Healthcare Insider
      • Sponsored Video Series - One on One
      • Sponsored Video Series - Checking In with Dan Peres
    • Data & Insights
      • Data & Insights Home
      • Hospital Financials
      • Staffing & Compensation
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