Four of the largest for-profit hospital operators reported mixed earnings in the second quarter of 2024; three systems reported increases in first-quarter net income while one system posted a net loss for the second consecutive quarter:
1. Nashville, Tenn.-based HCA Healthcare reported a net income of nearly $1.5 billion in the second quarter of 2024, up from $1.2 billion over the same period in 2023. Revenues for the three months ended June 30 totaled $17.5 billion, up from $15.9 billion in the same quarter last year, while expenses were $15.3 billion, up from $14.1 billion. HCA CEO Sam Hazen said "results for the second quarter were positive and reflected strong demand for our services."
2. Franklin, Tenn.-based Community Health Systems reported an operating income of $238 million in the second quarter, down slightly from $246 million during the same period last year. Other expenses, primarily $216 million in interest costs, left CHS with a net loss of $13 million in the second quarter, compared to a net loss of $38 million in the prior-year period. Second-quarter revenue increased 0.8% year over year to $3.14 billion while expenses increased 1.2% to $2.9 billion. CEO Tim Hingtgen said CHS had "another solid quarter that includes same-store, year-over-year improvements in operating results, supported by strong volume growth and expense management."
3. Dallas-based Tenet Healthcare reported $259 million in second-quarter net income, a 111% year-over-year increase. Revenue for the period were $5.1 billion, up from $5.08 billion during the same quarter in 2023. Operating income was $761 million for the second quarter, a 26% increase from $604 million during the same period last year. Tenet CEO Saum Sutaria, MD, said results "significantly exceeded" expectations for the quarter and were "driven by volume and revenue growth as well as sustained fundamentally strong operating performance."
4. King of Prussia, Pa.-based Universal Health Services reported $289.2 million in net income for the second quarter, a 68.8% increase from the $171.3 million it posted in the same quarter last year. Second-quarter revenue hit $3.9 billion, up from $3.5 billion in the same quarter in 2023, while expenses hit $3.5 billion, up from $3.3 billion. Based on operating trends and financial results from the first half of 2024, UHS raised its 2024 forecast: it is expecting an adjusted EDITA between $2.15 billion and $2.23 billion for the year ending Dec. 31, up from its previous forecast of $1.93 billion and $2.02 billion.