HCA Healthcare revealed in February executive incentive pay would be tied to quality and financial metrics for 2024. Top executives must hit specific targets to achieve their performance awards, with 80% focused on EBITDA targets and 20% on quality metrics targets.
Halfway through the year, are they on track?
The company's 8-K form did not specify clear metrics top executives need to hit, but the Nashville, Tenn.-based health system has reported financial growth for the first two quarters. HCA reported nearly $1.5 billion net income for the second quarter and $3 billion for the first half of the year at the end of July.
HCA raised revenue, income and adjusted EBITDA expectations after the second-quarter results. The increases are outlined below:
Revenue
Previous: $67.8 billion to $70.3 billion
Raised: $69.8 billion to $71.6 billion
Net income attributable to HCA
Previous: $5.2 billion to $5.6 billion
Raised: $5.7 billion to $5.97 billion
Adjusted EBITDA
Previous: $12.9 billion to $13.6 billion
Raised: $13.8 billion to $14.3 billion
HCA ended the first half of the year with 188 hospitals, gaining two since the beginning of the year, and 2,400 ambulatory sites of care across the U.S. and the U.K.
While revenue has increased, so have expenses. Total expenses were up for the second quarter to $15.3 billion from $14.1 billion in the same period last year. Salary and benefit costs, as well as supply expenses, ticked up slightly to $7.7 billion and $2.6 billion, respectively.