Third-quarter net income for HCA rose 24 percent due to greater income per admission, while same-facility volume was flat and numbers of uninsured patients increased, according to a news release from HCA.
Meanwhile, Moody's Investors Service changed its outlook on HCA to positive, noting the massive chain's large-scale operation would help diversify risks and its increased use of cost containment should improve performance as the economy recovers.
"HCA has been able to offset industry pressures, such as increasing bad-debt expense and weak volumes, and realize solid earnings growth," said Dean Diaz, Moody's senior credit officer.
HCA's third-quarter revenue rose 1.5 percent to $7.65 billion and cash revenues increased 4.6 percent to $6.926 billion. Admissions and outpatient visits combined rose 0.7 percent on a same-facility basis. Specifically, admissions declined 0.6 percent while revenue per admission, adjusted to include outpatient visits, increased 0.8 percent. Surgeries on a same-facility basis declined 2.1 percent.
Provision for doubtful accounts, representing patients unlikely to pay their bills, along with charity care and discounts for the uninsured, rose from 24.9 percent of revenue a year earlier to 26.4 percent. Admissions of uninsured patients increased 3.9 percent on a same-hospital basis, making up 7.4 percent of total admissions.
HCA, the largest private operator of hospitals in the world, operates 162 hospitals and 104 surgery centers.
Read the release on HCA's third quarter earnings (pdf).
Read more coverage of HCA.
- Fitch Ratings Upgrades HCA
- HCA Likely to Hold Off on IPO Until Next Year
- HCA Revenue Up 3.7% for 2Q
Meanwhile, Moody's Investors Service changed its outlook on HCA to positive, noting the massive chain's large-scale operation would help diversify risks and its increased use of cost containment should improve performance as the economy recovers.
"HCA has been able to offset industry pressures, such as increasing bad-debt expense and weak volumes, and realize solid earnings growth," said Dean Diaz, Moody's senior credit officer.
HCA's third-quarter revenue rose 1.5 percent to $7.65 billion and cash revenues increased 4.6 percent to $6.926 billion. Admissions and outpatient visits combined rose 0.7 percent on a same-facility basis. Specifically, admissions declined 0.6 percent while revenue per admission, adjusted to include outpatient visits, increased 0.8 percent. Surgeries on a same-facility basis declined 2.1 percent.
Provision for doubtful accounts, representing patients unlikely to pay their bills, along with charity care and discounts for the uninsured, rose from 24.9 percent of revenue a year earlier to 26.4 percent. Admissions of uninsured patients increased 3.9 percent on a same-hospital basis, making up 7.4 percent of total admissions.
HCA, the largest private operator of hospitals in the world, operates 162 hospitals and 104 surgery centers.
Read the release on HCA's third quarter earnings (pdf).
Read more coverage of HCA.
- Fitch Ratings Upgrades HCA
- HCA Likely to Hold Off on IPO Until Next Year
- HCA Revenue Up 3.7% for 2Q