Hca Healthcare, Inc. · NYSE:HCA
Hca Healthcare — 34th Annual J.P. Morgan Healthcare Conference (January 2016)
25 slides from Hca Healthcare's conference presentation, Jan 11, 2016
Slide 1: 34th Annual J.P. Morgan Healthcare Conference
34th Annual J.P. Morgan Healthcare Conference San Francisco, CA January 11, 2016 Milton Johnson Chairman of the Board & Chief Executive Officer Sam Hazen Chief Operating Officer Vic Campbell Senior Vice President Mark Kimbrough Vice President, Investor Relations
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: Who we are / Healthcare industry overview / Positioned to succeed
Who we are Healthcare industry overview Positioned to succeed 3
Slide 4: Who we are
Who we are Pearland Medical Center Pearland, Texas Opened February 2015
Slide 5: Sources of differentiation
Sources of differentiation Diversified portfolio Financial Scale strength Deep and Strong experienced operating leadership culture 5
Slide 6: Diversified portfolio in growing markets
Diversified portfolio in growing markets Salt Lake 20% Western New Idaho Kansas Hampshire Idaho Denver San Jose City Falls 32% 17% 23% Richmond Las Vegas Nashville Terre 37% 32% 34% Haute NOVA Frankfort SWVA Las Vegas Wichita Dallas/ Chattanooga Oklahoma Fort Worth City Austin Myrtle Beach 18% NWGA
Slide 7: Diversified mix of facilities and services
Diversified mix of facilities and services Acute Care Ambulatory Access Physicians Services Centers 167 113 66 ~830 Hospitals Urgent Care Physician ASCs Centers Clinics 44K 15 55 35K Licensed Beds GI Centers Freestanding ERs Active Medical Staff Enterprise Services Shared Services 7
Slide 8: Delivering strong topline growth
Delivering strong topline growth Admissions 1.9M 3.7% Equivalent 3.1M 4.6% Admissions ER Visits 8.0M 6.9% Surgeries 1.4M 2.4% Revenue $39.1B 6.9% Values represent LTM September 2015 Percentages represent 5 year CAGR: 2010 – LTM September 2015 8
Slide 9: Converting to solid EBITDA growth
Converting to solid EBITDA growth 5-year Adjusted EBITDA CAGR: 5.7% $8.0 $7.7 $7.5 $7.0 $6.5 $5.9 $6.0 In Billions $5.5 $5.0 2010 2011 2012 2013 2014 Sept 2015-LTM 5 year adjusted EBITDA CAGR: 2010 – LTM September 2015 9
Slide 10: Deploying a balanced capital allocation
Deploying a balanced capital allocation Cash Flows from Operations $18.5B Capital Expenditures $8.9B Acquisitions $3.3B Special Dividends $3.2B Share Repurchases $5.1B Use of Cash Flows from March 2011 IPO through 3Q 2015 10
Slide 11: Advancing the patient experience
Advancing the patient experience Competent Employees Values: • Safe • High quality • Efficient Big Data/ Partnering • Compassionate Best Patient Experience with Practices Physicians 106 Hospitals 2015 Top Performers by the Joint Commission Technology 11
Slide 12: Healthcare industry overview
Healthcare industry overview StoneSprings Hospital Center Dulles, Virginia Opened December 2015
Slide 13: Positive industry outlook
Positive industry outlook U.S. health spending projected to grow 5.8% annually from 2014-2024 2 • Improving economic conditions • Aging population • Clinical innovation • ACA coverage expansion Stable pricing environment No significant change in competitive dynamics 13
Slide 14: HCA markets are more favorable
HCA markets are more favorable HCA U.S. 5-year Population CAGR 3 1.2% 0.7% 5-year Demand CAGR 4 2.2% 1.6% GDP Growth 5 3.0% 2.4% Unemployment Rate 6 4.6% 4.8% 14
Slide 15: Healthcare reform potential remains
Healthcare reform potential remains 3.9M* remaining eligible enrollees7, 8, 9 <15% of HCA beds in Texas Medicaid expansion states 1.5M* HCA Medicaid Florida Expansion State10 840K* *Remaining eligible enrollees within HCA markets only7, 8, 9 15
Slide 16: Positioned to succeed
Positioned to succeed Citrus Park Emergency Room Tampa, Florida Opened June 2015
Slide 17: Be the provider system of choice
Be the provider system of choice Operational Excellence Coordination Access and Across Local Convenience Continuum Sustainable Growth Strong Comprehensive Physician Service Lines Relationships 17
Slide 18: Leveraging our scale locally
Leveraging our scale locally Economies Make our business better Drive more growth Innovation Get to market faster Capital Support even better execution 18
Slide 19: Making significant investments in our markets
Making significant investments in our markets $12+ billion since Acquisitions the IPO Hospitals 16 Beds 3,911 Capacity Free Standing ERs 37 FSER Beds 430 ER Beds 181 Hospital Beds 1,950 19
Slide 20: Nashville market overview
Nashville market overview 3 12 Hospital Campuses 1 Children’s Campus 1 Behavioral Campus 2,000 Beds 1 Trauma Center 17 Imaging Centers 5 6 Ambulatory Surgery Centers 7 Health Parks 66 TriStar Medical Group Locations 3 3 Freestanding ERs 2 7 2 14 Minute Clinics 5 10 CareSpot 3 Urgent Care Centers 1 T
Slide 21: Dallas/Fort Worth market overview
Dallas/Fort Worth market overview HOSPITAL CAMPUSES (12) Children’s Hospital (1) Behavioral Hospital (1) Beds (3,000) Trauma Centers (3) Freestanding ERs (6) CareNow (25) Pedi Urgent Care (6) Women’s Imaging (12) ASCs (11) Physician Offices (11) 21
Slide 22: Sustaining market share growth
Sustaining market share growth 24.4% 24.3% 24.2% 24.0% 23.8% Share gains over PY 23.6% 30 of 38 Markets 23.4% 23.4% 14 of 19 Service Lines 23.2% 23.0% 22.8% Prior Year (3) Prior Year (2) Prior Year Current Year Note: Percentages represent current market share1 Market Share Notes: Source = State
Slide 23: Sources of differentiation
Sources of differentiation Diversified portfolio Financial Scale strength Deep and Strong experienced operating leadership culture 23
Slide 24: Notes and Sources
Notes and Sources 1 Market Share Notes: • Same Store. Composition Market (In Market + In Migration) • Statistics are based on data for the most recently available 48 month period for 38 defined markets. • Analysis includes data for 32 markets through 1Q‘15, 2 markets through 4Q‘14 (Kansas City & Wic
Slide 25: 34th Annual J.P. Morgan Healthcare Conference
34th Annual J.P. Morgan Healthcare Conference San Francisco, CA January 11, 2016 Milton Johnson Chairman of the Board & Chief Executive Officer Sam Hazen Chief Operating Officer Vic Campbell Senior Vice President Mark Kimbrough Vice President, Investor Relations
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