Nashville, Tenn.-based HCA Healthcare continued its impressive growth streak in the third quarter and the health system is showing no signs of slowing down, according to CEO Sam Hazen.
The 187-hospital system, which reported an operating income of $1.9 billion (10.9% margin) in the third quarter, has about $6 billion worth of projects under development across the country.
"By the end of this year, we expect to have added approximately 600 inpatient beds and 100 new outpatient facilities, bringing our total sites of care to over 2,600," Mr. Hazen said during the company's third-quarter earnings call. "These investments, which should come online over the next few years, will add more capacity and create greater access across our networks, allowing us to meet the growing demand for healthcare services we anticipate in our markets."
Having grown by seven hospitals from 2019 to 2023, HCA is set to expand further this year. Targeted acquisitions are a key part of HCA's strategy, with Mr. Hazen emphasizing the focus on "selective strategic acquisitions that complement our networks" during the company's second-quarter earnings call in July.
HCA's selective hospital M&A strategy aligns with its outpatient growth plans. The for-profit system operates an average of 13 outpatient facilities for each hospital and aims to increase that to between 17 and 20 by the end of the decade.
This strategic expansion underscores HCA's commitment to capacity growth and access, as Mr. Hazen projects healthcare demand to rise by approximately 3% to 4% in 2025 — above HCA's historical growth estimates of 2% to 3%.
"With respect to our earnings outlook for next year, given the strong volume growth assumption coupled with an anticipated mostly stable operating environment, should generate earnings growth near or slightly above the upper end of our long-term target ranges for both diluted earnings per share and adjusted EBITDA," Mr. Hazen said.