Skip to main content
Subscribe
  • Sign Up Free
  • Login
  • Subscribe
  • News
    • Current News
    • Providers
    • Insurance
    • Government
    • Finance
    • Technology
    • Safety & Quality
    • Digital Health
    • Transformation
    • ESG
    • People
    • Regional News
    • Digital Edition (Web Version)
    • Patients
    • Operations
    • Care Delivery
    • Payment
    • Midwest
    • Northeast
    • South
    • West
  • Opinion
    • Bold Moves
    • Breaking Bias
    • Commentaries
    • Letters
    • Vital Signs Blog
    • From the Editor
  • Events & Awards
    • Awards
    • Conferences
    • Galas
    • Virtual Briefings
    • Webinars
    • 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
    • Digital Health Transformation Summit
    • ESG: The Implementation Imperative Summit
    • Leadership Symposium
    • Social Determinants of Health Symposium
    • Women Leaders in Healthcare Conference
    • Best Places to Work Awards Gala
    • Health Care Hall of Fame Gala
    • Top 25 Diversity Leaders Gala
    • Top 25 Women Leaders Gala
    • - Hospital of the Future
    • - Value Based Care
    • - Hospital at Home
    • - Workplace of the Future
    • - Digital Health
    • - Future of Staffing
    • - Hospital of the Future (Fall)
  • Multimedia
    • Podcast - Beyond the Byline
    • Sponsored Podcast - Healthcare Insider
    • Video Series - The Check Up
    • Sponsored Video Series - One on One
  • Data Center
    • Data Center Home
    • Hospital Financials
    • Staffing & Compensation
    • Quality & Safety
    • Mergers & Acquisitions
    • Data Archive
    • Resource Guide: By the Numbers
    • Surveys
    • Data Points
  • Newsletters
  • MORE+
    • Contact Us
    • Advertise
    • Media Kit
    • Jobs
    • People on the Move
    • Reprints & Licensing
MENU
Breadcrumb
  1. Home
  2. Providers
October 30, 2018 01:00 AM

HCA posts strong revenue, earnings in Q3

Tara Bannow
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print

    Investor-owned hospital chain HCA Healthcare posted strong results for the third quarter of 2018, easily exceeding analysts' expectations in revenue growth and earnings.

    The Nashville, Tenn.-based company's revenue jumped 7.1% to $11.5 billion during the third quarter of 2018, which ended Sept. 30, compared with $10.7 billion during the same period in 2017. Net income attributable to HCA grew 78% year over year to $759 million, from $426 million during the same period in 2017.

    HCA's earnings before interest, taxes, depreciation and amortization totaled about $2 billion during the quarter, compared to $1.8 billion during the same period in 2017.

    The company's same-facility admissions grew 3.1% during the third quarter of 2018 year over year, while same-facility emergency room visits declined 0.4% during that time. Same-facility inpatient surgeries increased 1.6% year over year, and same-facility outpatient surgeries increased 4.2% during that period.

    HCA's Chief Operating Officer Sam Hazen said on the earnings call that the third quarter of 2018 marked 18 consecutive quarters in which HCA has grown its same-facility admissions. He also noted that 12 of the company's 14 divisions saw growth in both admissions and adjusted admissions.

    Considering macro trends in HCA's markets, the company's growth plan, market-share gains and its experienced management team, Hazen said he expects the earnings growth rate in 2019 to be within the range of the company's 2018 guidance for its full-year EBITDA growth rate of roughly 7%.

    "Typically we do not provide any indication of the upcoming year at this point, but with the transition in leadership, I felt it important to give a glimpse into the upcoming year," he said.

    Hazen will replace HCA's outgoing CEO, Milton Johnson, who is retiring at the end of the year.

    After actively participating on 80 earnings calls, Johnson noted Tuesday's call would be his last.

    "This is a wonderful company with many talented people that are committed to the delivery of high-quality care and operational excellence," he said.

    HCA continued its robust revenue per admission growth during the third quarter of 2018. That metric, driven by higher acuity patients and prices, was up 3.9% on a same-facility basis year over year. HCA has posted high revenue per admission growth in recent quarters.

    HCA signed a definitive agreement in August to acquire six-hospital Mission Health based in Asheville, N.C., for $1.5 billion. The deal is being reviewed by the state's attorney general.

    HCA earlier this year also completed the acquisition of Memorial Health in Savannah, Ga.

    While Hazen described both as "market makers," he said the two deals took place under very different circumstances. Whereas Memorial Health was in a "desperate situation" and needed capital and management expertise, Mission Health is well managed, has great physicians and is posting strong financial results, he said.

    "(Mission) viewed the need for sale as being very significant, at least in their thinking, and their board made the decision to go down that path with us," Hazen said.

    At this point, HCA's primary interest is in working with its existing portfolio, but the company also is looking for opportunities in new markets, he said.

    HCA's third quarter 2018 results include gains of $6 million stemming from sales on facilities and $9 million in losses on retirement of debt. The company noted it saw a $132 million tax benefit due to the lower corporate tax rate under the Tax Cuts and Jobs Act.

    Letter
    to the
    Editor

    Send us a letter

    Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.

    Recommended for You
    merger-arrows-money_i.png
    Option Care Health CEO stands by $3.6B Amedisys deal
    Why home is becoming the future for hospitals
    Why home is becoming the future for hospitals
    Most Popular
    1
    More healthcare organizations at risk of credit default, Moody's says
    2
    Centene fills out senior executive team with new president, COO
    3
    SCAN, CareOregon plan to merge into the HealthRight Group
    4
    Blue Cross Blue Shield of Michigan unveils big push that lets physicians take on risk, reap rewards
    5
    Bright Health weighs reverse stock split as delisting looms
    Sponsored Content
    Modern Healthcare A.M. Newsletter: Sign up to receive a comprehensive weekday morning newsletter designed for busy healthcare executives who need the latest and most important healthcare news and analysis.
    Get Newsletters

    Sign up for enewsletters and alerts to receive breaking news and in-depth coverage of healthcare events and trends, as they happen, right to your inbox.

    Subscribe Today
    MH Magazine Cover

    MH magazine offers content that sheds light on healthcare leaders’ complex choices and touch points—from strategy, governance, leadership development and finance to operations, clinical care, and marketing.

    Subscribe
    Connect with Us
    • LinkedIn
    • Twitter
    • Facebook
    • RSS

    Our Mission

    Modern Healthcare empowers industry leaders to succeed by providing unbiased reporting of the news, insights, analysis and data.

    Contact Us

    (877) 812-1581

    Email us

     

    Resources
    • Contact Us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Editorial Dept
    • Submission Guidelines
    • Code of Ethics
    • Awards
    • About Us
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Modern Healthcare
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • News
      • Current News
      • Providers
      • Insurance
      • Government
      • Finance
      • Technology
      • Safety & Quality
      • Digital Health
      • Transformation
        • Patients
        • Operations
        • Care Delivery
        • Payment
      • ESG
      • People
      • Regional News
        • Midwest
        • Northeast
        • South
        • West
      • Digital Edition (Web Version)
    • Opinion
      • Bold Moves
      • Breaking Bias
      • Commentaries
      • Letters
      • Vital Signs Blog
      • 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
        • - Digital Health
        • - Future of Staffing
        • - Hospital of the Future (Fall)
      • Webinars
    • Multimedia
      • Podcast - Beyond the Byline
      • Sponsored Podcast - Healthcare Insider
      • Video Series - The Check Up
      • Sponsored Video Series - One on One
    • Data Center
      • Data Center Home
      • Hospital Financials
      • Staffing & Compensation
      • Quality & Safety
      • Mergers & Acquisitions
      • Data Archive
      • Resource Guide: By the Numbers
      • Surveys
      • Data Points
    • Newsletters
    • MORE+
      • Contact Us
      • Advertise
      • Media Kit
      • Jobs
      • People on the Move
      • Reprints & Licensing