Tenet Healthcare and HCA Healthcare, two of the largest for-profit hospital operators in the U.S., reported significant net incomes in 2023, but Tenet's profits improved substantially over the prior year's while HCA's were down slightly.
Ten things to know:
HCA Healthcare
1. Nashville, Tenn.-based HCA, a 186-hospital system, posted $5.2 billion in net income in 2023, down 7% from $5.6 billion in 2022. Operating income was $7.7 billion, down from $8.6 billion the previous year.
2. Revenue for the year totaled $65 billion, coup from $60 billion in 2022. Fourth-quarter revenue was $17.3 billion, compared to $15.5 billion during the same period in the previous year.
3. "In the [fourth] quarter, we experienced strong demand for services across our diversified portfolio of markets, facilities and service lines," CEO Sam Hazen said. "This growth coupled with improved cost trends drove solid financial performance in the fourth quarter."
4. As of Dec. 31, HCA's balance sheet reflected cash and cash equivalents of $935 million, total debt of $39.6 billion and total assets of $56.2 billion.
5. In 2024, HCA expects revenues between $67.75 billion and $70.25 billion and net income of $5.2 billion to $5.6 billion. Capital expenditures, excluding acquisitions, are projected to be between $5.1 billion and $5.3 billion.
Tenet Healthcare
6. Dallas-based Tenet, which operates 58 hospitals, reported $1.3 billion in net income in 2023, up 30% from $1 billion in 2022. Operating income hit $2.5 billion, growing 12.2% year over year.
7. Revenue for the year totaled $20.5 billion, up from $19.2 billion in 2022. Fourth-quarter revenue grew by 7.8% year over year to $5.4 billion.
8. "Our businesses performed exceptionally well in 2023, driven by strong same facility revenue growth and disciplined operating management," CEO Saum Sutaria, MD, said. "We carry momentum into 2024 and are focused on continuing to expand access to care and investing in cutting edge technology for our patients and physician partners, while strategically reducing our debt and growing our ambulatory care and hospital businesses."
9. Cash flows provided by operating activities in 2023 were $2.4 billion versus $1.1 billion in 2022 (or $2.1 billion excluding $880 million of repayments associated with Medicare advances and $128 million of payroll tax deferrals from 2020).
10. In 2024, Tenet expects revenues between $19.9 billion and $20,3 billion and net income from continuing operations to be in the range of $2,17 to $2,42 billion. Its adjusted EBITDA outlook is anticipated to be in the range of $3.29 billion to $3.49 billion.