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. Finance
January 27, 2022 05:46 PM

Omicron may have peaked, but HCA expects COVID-19 to linger in 2022

Tara Bannow
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    bracelet and covid_0001_WEB_0.jpg
    MH Illustration/Getty Images

    HCA Healthcare isn't convinced that the COVID-19 omicron variant is done with it, the for-profit health system's chief executive said on an earnings call Thursday.

    During the fourth quarter, 5% of patients admitted to its 182 hospitals had COVID-19, the Nashville, Tennessee-based health system reported. That's significantly lower than the 13% of admissions recorded during the previous three months, but those 27,000 patients were still enough to put a damper on fourth quarter earnings, which fell below Wall Street analysts' estimates.

    HCA Healthcare anticipates its COVID-19 volume will decline in the coming weeks, but still expects 3% to 5% of admissions this year will be patients infected with the novel coronavirus, CEO Sam Hazen said.

    HCA Healthcare generated $15.1 billion in revenue in the fourth quarter, up 5.4% from the prior-year period, and full-year 2021 revenue grew 14% to $58.8 billion.

    The health system's net income rose 28.6% to $1.8 billion in the fourth quarter while full-year profit grew 85% to almost $7 billion. Earnings before income, taxes, depreciation and amortization were $3.1 billion in the fourth quarter, up less than 1%, while full-year EBITDA increased 26%.

    HCA Healthcare expects revenue to reach $60 billion to $62 billion this year and projects $5.8 billion in profit, a decline from 2021.

    HCA's share price dipped sharply Thursday morning on the underwhelming financial results but rebounded and closed at 4.7% below than the previous day's close. That compares to a 0.02% decline in the Dow Jones Industrial Average and a 0.14% increase in the S&P 500 Health Care index, which includes HCA Healthcare.

    Download Modern Healthcare’s app to stay informed when industry news breaks.

    MH Illustration/Getty Images

    The crush of COVID-19 cases led to a 1.2% decline in inpatient surgeries on a same-hospital basis during the fourth quarter. Orthopedic surgeries moving to outpatient settings was a related factor, Hazen said. Patients reluctant to visit hospitals during the pandemic have accelerated a shift from inpatient to outpatient care.

    The pandemic also robbed HCA Healthcare of its customary end-of-year volume bump, Hazen said. Volume will pick back up early this year as patients who delayed care in 2021 return, he said.

    Workforce issues also diminished HCA Healthcare revenue, Hazen said. "We had surgeons who were closing practices [and] canceling cases because they themselves contracted the omicron variant," he said.

    Like its peers, HCA Healthcare continues to spend more on labor because of the pandemic and the resultant need to hire expensive travel nurses. Employee compensation rose 12.2% in the fourth quarter, which was twice the overall rate of cost increases. The health systems continues to boost pay, bonuses and benefits but likely will cut back on contract workers in the second half of the year, Hazen said.

    HCA Healthcare benefited from about $900 million in COVID-19-related government aid last year. Of that, more than $400 million came from the Health Resources and Services Administration, $200 million resulted from delaying Medicare cuts under budget sequestration and about $180 million came from Medicare's add-on payment for treating COVID-19 patients, Chief Financial Officer Bill Rutherford said during the investor call. The company projects government support will fall to $150 million this year.

    HCA Healthcare is struggling to discharge COVID-19 patients to post-acute facilities, Hazen said. Often, those rehabilitation and nursing facilities can't accept patients because they're dealing with the same staff shortages as hospitals. Universal Health Services Chief Financial Officer Steve Filton cited the same challenge at the J.P.Morgan Healthcare Conference this month.

    As the pandemic lingers, hospitals will continue to struggle with how to appropriately triage coronavirus patients while maximizing profit, said Natalie Schibell, a senior analyst at Forrester Research. Shifting that care into homes whenever possible will be crucial, she said. "Hospitals that aren't adapting to this model—they're not going to succeed."

    Related Article
    HCA to build five new hospitals in Texas
    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
    cahill_walgreens_photo_i.jpg
    Walgreens sells remaining stake in Option Care Health
    sutter_i.jpg
    Sutter Health plots ambitious California expansion
    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
    Daily Finance Newsletter: Sign up to receive daily news and data that has a direct impact on the business and financing of healthcare.
    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