HCA(US:HCA)2025-02-13 23:26Financial Performance - Net income for HCA Healthcare, Inc. in 2024 was $5.760 billion, or $22.00 per diluted share, compared to $5.242 billion, or $18.97 per diluted share in 2023, reflecting a year-over-year increase of 9.8% in net income [314]. - Total revenues increased to $70.603 billion in 2024, up 8.7% from $64.968 billion in 2023, driven by a 5.3% increase in equivalent admissions and a 3.2% increase in revenue per equivalent admission [315]. - Revenues increased by 8.7% to $70.603 billion for 2024 from $64.968 billion for 2023, driven by a 5.3% increase in equivalent admissions and a 3.2% increase in revenue per equivalent admission [348]. - Net income attributable to HCA Healthcare, Inc. was $5.760 billion, or $22.00 per diluted share, for 2024, compared to $5.242 billion, or $18.97 per diluted share, for 2023 [371]. Admissions and Patient Volume - Consolidated admissions rose by 5.0% in 2024, with inpatient surgical volumes increasing by 2.2%, while outpatient surgical volumes declined by 1.9% [316]. - Consolidated admissions increased by 5.0% during 2024 compared to 2023, with inpatient surgical volumes increasing by 2.2% [350]. - Same facility admissions increased by 4.9% in 2024 compared to 2023 [372]. - Average daily census increased to 29,581 in 2024 from 28,721 in 2023, reflecting higher patient volume [367]. - Emergency room visits increased by 4.8% on a consolidated basis in 2024 compared to 2023, totaling 9,789,265 visits [372]. - Same facility uninsured emergency room visits increased by 13.5% during 2024 compared to 2023 [352]. Financial Expenses and Liabilities - Interest expense for 2024 totaled $2.061 billion, an increase of $123 million from $1.938 billion in 2023, primarily due to a higher average debt balance [318]. - Interest expense rose to $2.061 billion in 2024 from $1.938 billion in 2023, primarily due to an increase in average debt balance [379]. - Professional liability provisions for the current year claims were $545 million for 2024, compared to $573 million for 2023 [343]. - Reserves for professional liability risks were $2.131 billion at December 31, 2024, compared to $2.089 billion at December 31, 2023, with a current portion of $587 million [342]. - The estimated total net reserves for professional liability risks at December 31, 2024, included $1.059 billion for case reserves for known claims and $992 million for reserves for incurred but not reported claims [342]. Operating Activities and Cash Flow - Cash flows from operating activities increased by $1.083 billion to $10.514 billion in 2024, attributed to a $542 million increase in net income and a positive change in working capital items [319]. - Cash provided by operating activities totaled $10.514 billion in 2024, an increase of $1.083 billion compared to $9.431 billion in 2023 [384]. - Cash used in investing activities was $4.933 billion in 2024, compared to $5.317 billion in 2023 [385]. - Cash used in financing activities totaled $4.582 billion in 2024, up from $4.094 billion in 2023 [388]. Strategic Initiatives - HCA Healthcare plans to expand its presence in existing markets by developing outpatient facilities and comprehensive service lines, including cardiology and oncology [320]. - The company aims to achieve industry-leading performance in clinical and operational measures through initiatives focused on patient safety and satisfaction [322]. - HCA Healthcare emphasizes recruiting and retaining healthcare professionals to ensure high-quality services, supported by advanced technology and expanded specialty services [323]. - The company intends to pursue a disciplined development strategy, focusing on selectively developing and acquiring new hospitals and outpatient facilities to capitalize on growth opportunities [325]. Cost and Revenue Ratios - The cost-to-charges ratio for patient care costs was 10.1% for 2024, down from 10.5% in 2023 [334]. - Salaries and benefits as a percentage of revenues decreased to 44.1% in 2024 from 45.4% in 2023 [374]. - Other operating expenses increased to 21.0% of revenues in 2024 from 19.8% in 2023, primarily due to increased costs for state provider fees and repairs related to Hurricane Milton [376]. Long-term Debt and Tax Matters - Total long-term debt was $43.031 billion at December 31, 2024, compared to $39.593 billion at December 31, 2023 [394]. - The estimated fair value of total long-term debt was $40.845 billion at December 31, 2024 [406]. - The average effective interest rate for long-term debt remained at 5.0% for both 2024 and 2023 [379]. - The IRS completed examinations of the company's 2016, 2017, and 2018 income tax returns, resolving all federal income tax matters for those years [408]. - As of December 31, 2024, the IRS is examining the company's 2022 and 2023 income tax returns, along with the 2019 returns of certain affiliates [408]. - The company believes it has properly reported taxable income and paid taxes in accordance with applicable laws, minimizing potential adverse effects on financial position [408]. - Future tax resolutions could materially impact the company's results if payments exceed recorded estimates [408].