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HCA profit climbs on higher volumes

Admissions and emergency visits both grew in the last quarter of 2014.
By Henry Powderly

Nashville, Tennessee-based hospital operator HCA Holdings posted a fourth quarter profit of nearly $527 million, the company said on Wednesday, driven by higher volumes and an increase in Medicaid payments. The profit excluded net income from non-controlling interests.

The company posted revenue of $9.6 billion in the quarter, a 9 percent jump over the same period last year. HCA saw same facility admission climb 5 percent and emergency visits jump nearly 11 percent compared to the prior year. Fourth quarter revenue also included a $68 million bump due to the reversal of a Texas Medicaid Waiver Program adjustment that trimmed revenue in the previous quarter.

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The company's profit included $9 million from sales of certain facilities.

“We believe our focus on clinical excellence, strategic capital deployment and operational execution has positioned the Company well for the future,” CEO R. Milton Johnson said in a statement.

For the full year, HCA said it earned about $1.9 billion attributable to its holdings on revenue of $36.9 billion, up from revenue of $34.1 billion in the prior year.

The company said it expects revenue up to $39.5 billion in the coming year.

Operating Statistics
                             
          Fourth Quarter     For the Years Ended Dec.  31
         

2014

   

2013

   

2014

   

2013

                             
Operations:                          
  Number of Hospitals         166         165         166         165  
  Number of Freestanding Outpatient Surgery Centers         113         115         113         115  
  Licensed Beds at End of Period         43,356         42,896         43,356         42,896  
  Weighted Average Licensed Beds         43,321         42,809         43,132         42,133  
                             
Reported:                          
  Admissions         458,000         434,300         1,795,300         1,744,100  
 

% Change

        5.5 %             2.9 %      
  Equivalent Admissions         760,200         716,200         2,958,700         2,844,700  
 

% Change

        6.1 %             4.0 %      
  Revenue per Equivalent Admission       $ 12,676       $ 12,337       $ 12,478       $ 12,016  
 

% Change

        2.7 %             3.8 %      
  Inpatient Revenue per Admission       $ 12,461       $ 12,124       $ 12,327       $ 11,829  
 

% Change

        2.8 %             4.2 %      
                             
  Patient Days         2,216,700         2,085,200         8,699,800         8,341,200  
 

% Change

        6.3 %             4.3 %      
  Equivalent Patient Days         3,679,000         3,438,600         14,337,200         13,604,600  
 

% Change

        7.0 %             5.4 %      
                             
  Inpatient Surgery Cases         132,600         128,700         518,900         508,800  
 

% Change

        3.0 %             2.0 %      
  Outpatient Surgery Cases         233,400         233,000         891,600         881,900  
 

% Change

        0.2 %             1.1 %      
                             
  Emergency Room Visits         1,949,200         1,754,300         7,450,700         6,968,100  
 

% Change

        11.1 %             6.9 %      
                             
 

Outpatient Revenues as a Percentage of Patient Revenues

        38.9 %       38.8 %       38.1 %       37.9 %
                             
  Average Length of Stay         4.8         4.8         4.8         4.8  
                             
  Occupancy         55.6 %       52.9 %       55.3 %       54.2 %
  Equivalent Occupancy         92.3 %       87.1 %       91.1 %       88.4 %
                             
Same Facility:                          
  Admissions         450,500         428,900         1,770,800         1,734,700  
 

% Change

        5.0 %             2.1 %      
  Equivalent Admissions         744,100         704,700         2,907,700         2,825,900  
 

% Change

        5.6 %             2.9 %      
  Revenue per Equivalent Admission       $ 12,677       $ 12,363       $ 12,475       $ 12,011  
 

% Change

        2.5 %             3.9 %      
  Inpatient Revenue per Admission       $ 12,525       $ 12,205       $ 12,392       $ 11,854  
 

% Change

        2.6 %             4.5 %      
                             
  Inpatient Surgery Cases         130,800         127,700         513,600         506,700  
 

% Change

        2.4 %             1.3 %      
  Outpatient Surgery Cases         228,200         228,900         873,400         874,300  
 

% Change

        -0.3 %             -0.1 %      
                             
  Emergency Room Visits         1,909,700         1,728,300         7,317,300         6,915,300  
 

% Change

        10.5 %             5.8 %      
                             

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