HCA Healthcare and Tenet Healthcare, two of the largest for-profit health systems in the U.S., reported higher net incomes in the second quarter of this year than in the same period of 2023.
Ten things to know:
HCA Healthcare
1. Nashville, Tenn.-based HCA Healthcare, a 188-hospital system, reported revenues of $17.5 billion in the second quarter, up from $15.9 billion in the same period last year.
2. HCA posted net income of nearly $1.5 billion in the second quarter, a 25% increase from $1.2 billion over the same period in 2023.
3. Total expenses for the quarter were $15.3 billion, up from $14.1 billion over the same period last year. Labor costs totaled $7.7 billion in the quarter, up from $7.3 billion over the same period last year. Supply expenses totaled $2.6 billion, up from $2.5 billion.
4. For 2024, HCA is estimating revenues of between $69.75 billion and $71.75 billion, up from its previous estimate of between $67.75 billion and $70.25 billion. It is anticipating net income of between $5.68 billion and $5.98 billion, up from its previous guidance of between $5.2 billion ad $5.6 billion.
5. "The company’s results for the second quarter were positive and reflected strong demand for our services," HCA CEO Sam Hazen said in the report. "Our teams continued to execute our strategic plan effectively and produce positive outcomes for our patients."
Tenet Healthcare
6. Dallas-based Tenet Healthcare, a 52-hospital system, reported revenues of $5.1 billion in the second quarter, up from $5.08 billion during the same quarter in 2023.
7. The health system reported a net income of $259 million in the second quarter, a 111% year-over-year increase from the $123 million net income posted in the same quarter in 2023.
8. Tenet's labor costs were $2.2 billion in the second quarter, down from $2.3 billion in the same period last year. Second-quarter supply expenses were $908 million, up from $891 million.
9. Tenet is estimating revenues of between $4.33 billion to $4.48 billion and net income of between $2.83 billion and $2.93 billion in 2024.
10. "Our results through the second quarter, which have significantly exceeded our expectations, have been driven by volume and revenue growth as well as sustained fundamentally strong operating performance," Tenet CEO Saum Sutaria, MD, said. "Our portfolio transformation and enhanced cash flow profile provide us with compelling opportunities for growth as we execute on our strategy and continue to broaden our service offerings for patient-centered care."