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Earnings were strong last quarter. HCA Healthcare, Inc. beat our consensus estimate by 10.66%, and for the current fiscal year, HCA is expected to post earnings of $21.37 per share on revenue of $69.35 billion. Have you been paying attention to shares of Tenet Healthcare (THC) ? Shares have been on the move with the stock up 7.1% over the past month. The stock hit a new 52-week high of $151 in the previous session. Tenet Healthcare has gained 92.3% since the start of the year compared to the 7.3% move for t ...

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Tenet Healthcare's stock rose to highs not seen in more than two decades as earnings growth and an improved revenue outlook lifted the stock. Tenet is the second hospital provider to post strong numbers this week, joining HCA Healthcare. Shares of Tenet are up more than 90% in 2024. Tenet Healthcare (THC) shares soared to a more than two-decade high after the hospital and surgical center chain posted stronger-than-expected results and boosted its outlook as it brought in more patients who paid more for serv ...

HCA Healthcare reported second-quarter adjusted EPS of $5.50, which beat the Zacks Consensus Estimate by 10.7%. The bottom line improved 28.2% year over year. Revenues amounted to $17.5 billion, which improved 10.3% year over year. The top line outpaced the consensus mark by 2.2%. Same-facility equivalent admissions increased 5.2% year over year while same-facility admissions grew 5.8% year over year. Same-facility revenue per equivalent admission rose 4.4% year over year. Same-facility inpatient surgeries ...

Financial Data and Key Metrics - Q2 2024 net operating revenues were $5.1 billion, with consolidated adjusted EBITDA of $945 million, representing a 12% YoY growth [8] - Adjusted EBITDA margin was 18.5% in Q2 2024 [8] - USPI adjusted EBITDA grew 21% YoY to $447 million in Q2 2024 [8] - Same-facility revenues grew 7.1% YoY in Q2 2024 [8] - Hospital segment adjusted EBITDA grew 5.3% YoY, with margins up 120 basis points to 12.6% [15] - Same-hospital inpatient admissions increased 5.2%, and revenue per adjusted admission grew 5.7% in Q2 2024 [15] - Free cash flow in Q2 2024 was $602 million, with $2.9 billion in cash on hand as of June 30, 2024 [44] Business Line Performance - USPI added 11 new centers in Q2 2024, including a partnership with Florida Orthopedic Institute [9] - USPI has nearly 25 centers in syndication stages or under construction [9] - Orthopedic volumes were strong, with total joint replacements in ASCs up 23% YoY [35] - Urology and GI procedures also showed ongoing growth [35] - Hospital segment adjusted EBITDA was $498 million in Q2 2024, with same-store hospital admissions growing 5.2% [36] Market Performance - The company is expanding its network, including a new hospital in Westover Hills near San Antonio, which will focus on procedural services [10] - The new hospital is in a geography growing at six times the national average [10] - USPI's same-facility system-wide revenues grew 7.1% YoY, with net revenue per case up 6.8% [42] Strategic Direction and Industry Competition - The company is prioritizing capital investments to grow USPI through M&A and hospital growth opportunities [21] - Investments are being made in higher acuity service offerings and AI-enabled technologies to enhance clinical and administrative efficiency [39] - The company has retired $2.1 billion of debt in 2024, focusing on deleveraging the balance sheet [39] - A new $1.5 billion share repurchase program has been authorized [13] Management Commentary on Operating Environment and Future Outlook - Management highlighted strong same-store revenues, high patient acuity, favorable payer mix, and effective cost controls as drivers of Q2 performance [14] - The company raised its full-year 2024 adjusted EBITDA guidance to $3.825 billion to $3.975 billion, an increase of $300 million [37] - USPI's 2024 adjusted EBITDA is expected to be $1.75 billion to $1.81 billion, a $100 million increase over prior expectations [19] - Q3 2024 consolidated adjusted EBITDA is expected to be $900 million to $950 million [20] Other Important Information - The company received a $30 million favorable adjustment from additional Medicaid supplemental revenues in Texas [16] - Contract labor expense was 2.6% of salary, wages, and benefits (SWB) in Q2 2024, down from 4.3% in Q2 2023 [43] - The company repurchased 2 million shares for $270 million in Q2 2024 [44] Q&A Session Summary Question: ASC revenue per case and surgical case volume drivers [23] - The increase in net revenue per case is driven by higher acuity and mix, particularly in orthopedics, cardiac, urology, and robotics [51] Question: Supplemental payment programs and opportunities [26] - Six hospital markets currently participate in supplemental programs, with potential for expansion in other states [53] - Michigan recently enhanced its HRA program, improving reimbursement rates [53] Question: Hospital segment performance and capacity expansion [29] - Q2 performance was strong due to strong volumes, capacity expansion, and effective cost control [29] - Capacity expansion is selective, focusing on markets lagging in COVID recovery [57] Question: Volume outlook for hospitals and USPI [65] - Inpatient admissions are expected to grow 3% to 4% in 2024, driven by a favorable utilization environment [95] - USPI volume guidance was adjusted due to strong comps from the previous year, but revenue per case remains strong [94] Question: Exchange-based coverage and margins [96] - Exchange-based coverage accounts for 6.5% of hospital revenues, with margins comparable to commercial payers [96][97] Question: ASC volume growth and service line trends [106] - Urology is in early stages of growth, with potential for multi-year tailwinds as robotic procedures move to ASCs [106] - Ophthalmology is strong, while pain procedures are being diversified to include higher acuity services [106][108] Question: USPI facility mix and hospital partnerships [110] - USPI has a disciplined integration process for new acquisitions, with 30% to 40% of centers in partnership with external hospitals [113] Question: Managed care pricing and contract negotiations [124] - Contract negotiations have normalized, with discussions focused on catching up to inflationary pressures [124] Question: Inpatient surgical growth vs. outpatient surgical decline [127] - Inpatient surgical growth is driven by acuity, while outpatient surgical decline is influenced by the shift to freestanding ASCs [128] Question: Hospital capacity and margin impact [137] - New capacity additions are margin accretive, with early phases potentially using contract labor before transitioning to permanent staff [148] Question: Occupancy levels and capacity utilization [150] - The company is focused on improving capacity utilization, with a measured approach to service line participation [140][141]

The reported revenue compares to the Zacks Consensus Estimate of $4.98 billion, representing a surprise of +2.49%. The company delivered an EPS surprise of +22.22%, with the consensus EPS estimate being $1.89. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Net Operating revenues: $5.10 billion versus the three-analyst average estimate of $4.96 billion. The rep ...

July 24, 2024 This presentation includes "forward looking statements." These statements relate to future events, including, but not limited to, statements regarding our liquidity, operating results, future earnings, financial position, operational and strategic initiatives, and developments in legislation, regulation, and the healthcare industry more generally. These forward-looking statements represent management's expectations, based on currently available information, as to the outcome and timing of futu ...

Tenet Healthcare (THC) came out with quarterly earnings of $2.31 per share, beating the Zacks Consensus Estimate of $1.89 per share. This compares to earnings of $1.44 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 22.22%. A quarter ago, it was expected that this hospital operator would post earnings of $1.45 per share when it actually produced earnings of $3.22, delivering a surprise of 122.07%. Over the last four quarters, ...