HCA CEO Sam Hazen said the Nashville, Tenn.-based health system plans to invest significantly in its long-term plans in 2024.
These investments revolve around "three distinct opportunities," he said on the company's Jan. 30 earnings call, as transcribed by The Motley Fool.
1. The first involves continued network expansion in facilities, services and workforce to meet expected demand growth in its market while also supporting efforts to increase market share.
"In 2024, we have over $2 billion of new capital projects scheduled to come online that will increase capacity," he said. "Additionally, we expect to integrate a number of newly acquired hospitals and outpatient facilities that should complement our networks."
2. The system developed an agenda designed to advance digital capabilities across the organization and "unlock the embedded value we see in our operations," Mr. Hazen said.
"As high performing as we are today, we believe there's more operational potential inside our company," he said. "With evolving technological tools, we are investing to unlock this value. We believe this initiative, together with our care transformation and innovation program, will enhance quality, drive further efficiencies through our financial resiliency program, and improve overall operational management capabilities, including integrating our revenue cycle in case management functions better."
3. The health system plans to use its balance sheet position and strong cash flow production to invest heavily in its business and employees while also allocating capital to its shareholders, Mr. Hazen said. HCA is planning to spend more than $5 billion on capital projects in 2024 and boost its share repurchase program to around $5 billion.