HCA Healthcare, a 186-hospital system based in Nashville, Tenn., received $1.7 billion from the $175 billion in emergency relief funds Congress allocated to hospitals and other healthcare providers to help cover lost revenue and expenses tied to the COVID-19 pandemic.
As of June 30, HCA had received $1.4 billion in aid funding made available under the Coronavirus Aid, Relief and Economic Security Act. This included about $920 million from the general distribution and about $450 million from targeted distributions for rural and safety-net hospitals and hospitals in COVID-19 hot spots, HCA Executive Vice President and CFO Bill Rutherford said during the company's second-quarter earnings call on July 22.
Mr. Rutherford said the company is still performing the required analysis and attestation process for the targeted distributions, and it had not recognized those funds in its profit and loss statement as of June 30. The company recognized $882 million of the general distribution funds in the second quarter.
Including the CARES Act grants, HCA's revenue dropped 12 percent in the second quarter compared to the same period a year earlier. Without the grants, the company's revenue would have declined approximately 19 percent, according to Fitch Ratings.
After June 30, HCA received approximately $300 million in additional targeted distribution funds, Mr. Rutherford said.
HCA ended the second quarter of this year with net income of $1.08 billion on revenue of $11.07 billion. A year earlier, the company reported net income of $783 million on revenue of $12.6 billion.