For Nashville, Tenn.-based Hospital Corporation of America, large downturns in admissions and outpatient volumes are expected to hinder its operating income and revenues for the first quarter of this year fiscal year.
HCA previewed its financial and operating results for the first quarter ended March 31, saying total revenue in the quarter will be around $8.44 billion, barely up from $8.41 billion in the same quarter a year ago. HCA expects income before taxes to be around $639 million, compared with $963 million in the first quarter of FY 2012.
The main impetus for the projected sluggish quarter is due to slow growth rates in both inpatient and outpatient volumes. Same-facility equivalent admissions are expected to be down 0.7 percent, compared with an increase of 4.8 percent in the first quarter last year. Same-facility inpatient surgeries are down roughly 2.6 percent, while same-facility outpatient surgeries declined 4.3 percent, compared to last year.
HCA executives affirmed their guidance for 2013 despite the news, saying revenue this year should still be between $33.5 billion and $34.5 billion. Adjusted EBITDA is still expected to settle between $6.2 billion and $6.5 billion.
HCA's shares fell more than 4 percent to $36.72 at the close of the bell yesterday.
HCA previewed its financial and operating results for the first quarter ended March 31, saying total revenue in the quarter will be around $8.44 billion, barely up from $8.41 billion in the same quarter a year ago. HCA expects income before taxes to be around $639 million, compared with $963 million in the first quarter of FY 2012.
The main impetus for the projected sluggish quarter is due to slow growth rates in both inpatient and outpatient volumes. Same-facility equivalent admissions are expected to be down 0.7 percent, compared with an increase of 4.8 percent in the first quarter last year. Same-facility inpatient surgeries are down roughly 2.6 percent, while same-facility outpatient surgeries declined 4.3 percent, compared to last year.
HCA executives affirmed their guidance for 2013 despite the news, saying revenue this year should still be between $33.5 billion and $34.5 billion. Adjusted EBITDA is still expected to settle between $6.2 billion and $6.5 billion.
HCA's shares fell more than 4 percent to $36.72 at the close of the bell yesterday.
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