Hca Healthcare, Inc. · NYSE:HCA
Hca Healthcare — Raymond James 36th Annual Institutional Investors Conference (March 2015)
17 slides from Hca Healthcare's conference presentation, Mar 3, 2015
Slide 1: Raymond James 36th Annual Institutional Investors Conference
Raymond James 36th Annual Institutional Investors Conference Bill Rutherford CFO and Executive Vice President Dr. Ravi Chari Senior Vice President, Clinical Excellence Mark Kimbrough Vice President, Investor Relations March 3, 2015, Orlando, FL
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
FORWARD-LOOKING STATEMENTS AND NON-GAAP FINANCIAL MEASURES This presentation may contain certain forward-looking statements provided by Company management. These statements are intended to be covered by the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looki
Slide 3: What Differentiates HCA
What Differentiates HCA Local Market Strategy & Execution Clinical Excellence Capital Deployment Size and Scale Market Diversification Culture and Values 3
Slide 4: What Differentiates HCA: Adjusted EBITDA Growth 2010-2014
What Differentiates HCA $1.56B of Adjusted EBITDA Growth from 2010 – 2014 $8.0 Adjusted EBITDA (in Billions) $7.5 $7.43 $7.0 $6.53 $6.57 $6.5 $6.06 $6.0 $5.87 $5.5 $5.0 2010 2011 2012 2013 2014 Adjusted EBITDA (in Billions) 4
Slide 5: HCA leveraged 2.9% Volume Growth to 38% EPS Growth in 2014
ival ent HCA leveraged Ad mis 2.9% Volume sion s(1) Growth to 38% 3.9% EPS Revenue per Equivalent Growth in 2014 Admission(1) 8.0% Revenues 13.0% Adjusted EBITDA 34.6% Adjusted Net Income Attributable to HCA Holdings, Inc.(2) 37.8% Adjusted Diluted Earnings Per Share(2) 5 (1) Same facility 2014 comp
Slide 6: HCA has a diversified portfolio of assets strategically selected in attractive markets
HCA has a diversified portfolio of assets strategically selected in attractive markets…… HCA’s top ten markets generate approximately 55% of earnings Anchorage Western Idaho Idaho Falls New Central Hampshi London re Salt Lake City Denver N-VA Terre Kansas City Haute San Jose S-VA Las Vegas Wichita R
Slide 7: Attractive Local Market Conditions – Economic Growth
Attractive Local Market Conditions – Economic Growth GDP Growth '12-'13 HCA's Top Markets 6.0% 5.0% 5.2% 90% 9 of HCA’s Top 10 MSAs are growing 4.3% faster than National 4.0% GDP Growth of 1.8% 3.0% 2.1% 2.2% 2.3% 2.4% 2.5% 2.8% 85% 44 of HCA’s 52 MSAs 2.0% 1.8% 1.9% have positive GDP 1.4% Growth 1.
Slide 8: Since the IPO, HCA has continued to invest in our existing markets
Since the IPO, HCA has continued to invest in our existing markets by improving access and expanding market reach Acquire Acquir d ed Hospital Beds 15 Free Anchorage 3,902 s Standing Western Idaho Capital Investment: 2011 - Emergency Idaho Falls 2014 New 30 $3,500 Rooms $10.8B Hampshi re (FSER) Salt
Slide 9: HCA's Sustainable Growth Agenda
HCA’s Sustainable Growth Agenda Industry leading quality and service Profitable growth through distinctive MD and patient relationships and value Efficiency levels that continue to lead the industry A well-informed response to evolving market environment Unparalleled development of future leaders “B
Slide 10: Setting the Standard for Clinical Excellence in Support of HCA's Strategic Agenda
Industry leading Setting the Standard for Clinical quality and Excellence service in Support of HCA’s Strategic Agenda o Create Patient-Centered Care Models Generating Value o Reduce Variation in Care for: Delivery Informed o Deliver Industry-Leading consumers with Outcomes high deductible health
Slide 11: Health Reform Impact on 2014
A well-informed response to Health Reform Impact on evolving market environment 2014 Uninsured admissions down 9.4% Health Insurance Exchange (HIX) 2014 Quarterly Volume Trends Medicaid admissions up 30,000 26,800 26,000 7.0% 25,000 20,000 19,100 HIX admissions and ED visits increasing by 15,0
Slide 12: 2014 Health Reform Impact
A well-informed response to evolving market 2014 Health Reform Impact environment HCA States: 5 State HIX 15 Federal HIX 5 Medicaid Expansion % Change in Admissions over Prior Year HCA States Medicaid Uninsured Expansion 40% (58% Federal HIX ) State HIX Non- 2.4% (3.4% Medicaid 12 Expansion 2014 ove
Slide 13: Successful Execution has resulted in Market Share Gains
Successful Execution has resulted in Market Share Gains HCA’s Market Share is up 139 bps since 2010 25.0% 6,000 5,980 24.36% 24.5% Inpatient Market Demand 5,960 24.24% 24.09% HCA Market Share 5,940 24.0% (in Thousands) 5,920 23.5% 5,900 23.49% 22.97% 5,880 23.0% 5,860 5,840 22.5% 5,820 22.0% 5,800 2
Slide 14: Consistent Volume Growth
Consistent Volume Growth 2014 % Change Equivalent Admits:4.0% ER Visits: quivalent Admissions and Emergency Room Visits 6.9% 8,000,000 7,450,700 6,912,000 6,968,100 7,000,000 6,143 6,000,000 5,706,200 5,000,000 4,000,000 2,832,100 2,844,700 2,958,700 3,000,000 2,468,400 2,595,900 2,000,000 1,000,000
Slide 15: Cash Flow Trends from March 2011 IPO through 2014
Cash Flow Trends from March 2011 IPO through 2014 Cash Flow from $15.3 B Operations Capital Expenditures $7.3 B Acquisitions $3.2 B Special Dividends $3.2B Share Repurchases1 $3.8B 1 Share repurchases does not include newly announced $1B share repurchase in February 2015 15
Slide 16: What Differentiates HCA
What Differentiates HCA Local Market Strategy & Execution Clinical Excellence Capital Deployment Size and Scale Market Diversification Culture and Values 16
Slide 17: Raymond James 36th Annual Institutional Investors Conference
Raymond James 36th Annual Institutional Investors Conference Bill Rutherford CFO and Executive Vice President Dr. Ravi Chari Senior Vice President, Clinical Excellence Mark Kimbrough Vice President, Investor Relations March 3, 2015, Orlando, FL
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