HCA Healthcare, Inc. · NYSE:HCA
HCA Healthcare — Investor Presentation (April 2020)
25 slides from HCA Healthcare's investor presentation, Apr 6, 2020
Slide 1: Session 1: CARES Act Paycheck Protection Program
Session 1: CARES Act Paycheck Protection Program April 6, 2020 The link to the recording is here. Use passcode nGZ39nRh to unlock. CONFIDENTIAL – Contains proprietary information. Not intended for external distribution.
Slide 2: Welcome!
Welcome! • There is no hold music when your audio connects, so thank you for your patience. The presentation will begin shortly. • ALL Attendee audio is muted. • Use one of the 3 audio options: Call Using Computer (recommended option), Call Me (BEST telephone option), or Call In (MUST enter ATTENDEE
Slide 3: Welcome! Opening Remarks
Welcome! Opening Remarks: Sandra Morgan, HCA SVP Physician and Provider Relations and Transfer Centers Erik Larsen, HCA VP Special Assets CONFIDENTIAL – Contains proprietary information. 3 Not intended for external distribution.
Slide 4: Agenda
Agenda CARES Act Paycheck Protection Erik Larsen, HCA VP Special Assets Program Overview Erik Larsen How can this program help your Alice Heywood, HCA Senior Counsel, Legal Development practice and how do you apply? Peter Rossell, HCA AVP Special Assets Rob Harris, Partner, Financial Services, Walle
Slide 5: Paycheck Protection Plan Overview
Paycheck Protection Plan Overview Erik Larsen CONFIDENTIAL – Contains proprietary information. 5 Special Assets Group Not intended for external distribution.
Slide 6: Before We Begin
Before We Begin DISCLAIMER: These slides and the SCOPE: This HCA program is intended to information presented is as of April 6, 2020, assist independent physicians, including those and subject to revision and interpretation on our medical staff, have access to hospital based on pending rules and reg
Slide 7: Summary of Program and Key Loan Terms
Summary of Program and Key Loan Terms The CARES Act is a $2 trillion economic stimulus package that includes $349 billion in Small Business Administration (SBA) 7(a) and SBA Express loans designated to keep staff employed and provide emergent liquidity to keep businesses of less than 500 employees f
Slide 8: Latest Updates: Paycheck Protection Program
Latest Updates: Paycheck Protection Program • Program went live Friday, April 3 for small businesses and sole proprietorships. Independent contractors and self- employed can apply as early as April 10. • SBA and Treasury have provided updated guidance through the weekend and promised more to come. •
Slide 9: Needed Information for the Application
Needed Information for the Application Borrower must complete an Application Form and provide payroll documentation and a good-faith certification as to COVID-19 impact, use of funds, attestation of no other pending applications for a covered loan, and no duplicative funds received. To calculate eli
Slide 10: Is My Practice Eligible to Apply?
Is My Practice Eligible to Apply? An entity generally is eligible for the PPP if: (i) it was in operation on February 15, 2020 and (ii) it, combined with its affiliates, is: • A small business under existing SBA regulations, or • Has 500 or fewer employees whose principal place of residence is the
Slide 11: Is My Practice Eligible to Apply? (Continued)
Is My Practice Eligible to Apply? (Continued) • Affiliate Rules: When counting the number of employees, a practice must also include all of the employees of any affiliate. Generally, affiliation exists when one business controls or has the power to control another. Affiliation with another entity ma
Slide 12: How Do I Calculate How Much I Can Borrow?
How Do I Calculate How Much I Can Borrow? • HOW MUCH CAN I BORROW? o Loans can be up to 2.5x the borrower’s average monthly payroll costs, not to exceed $10 million o Calculation of the maximum loan amount does not equate to the calculation of the maximum forgivable amount • HOW DO I CALCULATE MY AV
Slide 13: How Do I Calculate How Much I Can Borrow? (Continued)
How Do I Calculate How Much I Can Borrow? (Continued) • SPECIAL TOPIC o As an owner of the physician practice, can I include my own compensation in the loan amount calculations? o If you are an owner who is also a full-time employee of the business who receives wages (salary, wage, commission or sim
Slide 14: How Do I Calculate How Much I Can Borrow? (Continued)
How Do I Calculate How Much I Can Borrow? (Continued) Where do I find the information for these calculations? KEY PAYROLL CATEGORIES WHERE THIS INFORMATION IS TYPICALLY LOCATED Practice P&L Payroll Register* 1099s IRS 940,941,944** OTHER*** Included Payroll Costs Gross Wages Salary, wage, commission
Slide 15: How Will Loan Forgiveness Work?
How Will Loan Forgiveness Work? • What we know: Expenses Eligible o Loan must be used for payroll costs, mortgage interest, rent and utilities, and not more than for Forgiveness: 25% of the forgiven amount may be for non-payroll costs. Qualified Payroll o You will also owe money if you do not mainta
Slide 16: Loan Forgiveness: Key Considerations
Loan Forgiveness: Key Considerations • Additional guidance from the SBA is still needed. • Document, document, document… o Maintain records for your application calculations o Maintain detailed receipts and records of your expenses during the covered period • Keep in mind an amount equal to 75% of t
Slide 17: Case Study
Case Study • Medical Practice of Everywhere, LLC o 4 Physician owners with average annual 2019 salary and benefits of $250,000 each (not including owner distributions) o 10 full-time employees with average annual 2019 wages and benefits of $60,000 each o The practice also has: Monthly rent and mor
Slide 18: Case Study Sample Practice
Case Study Sample Practice (Partnership, LLC or Corporation) MAXIMUM LOAN CALCULATION Individual Annual Payroll 2019 Total Eligible Payroll Employees Number of FTEs Costs Eligible Payroll Costs Costs Physician Owners 4 $ 250,000 $ 100,000 $ 400,000 Staff 10 $ 60,000 $ 60,000 $ 600,000 Total Annual E
Slide 19: Key Takeaways for Practices
Key Takeaways for Practices 1. Call your bank as soon as possible to determine if they are a PPP lender. • If so, apply as fast as possible. 2. Begin collecting the necessary information to apply. • Discuss with your practice manager. • Call your accountant and 3rd party payroll provider (if applica
Slide 20: Expert-led Q&A
Expert-led Q&A CONFIDENTIAL – Contains proprietary information. 20 Special Assets Group Not intended for external distribution.
Slide 21: Meet Our Panelists
Meet Our Panelists Rob Harris, Partner at Waller Lansden Rob Harris is a Partner and the Financial Services Industry Chair at Waller based in Nashville, Tennessee. Rob specializes in commercial finance. His areas of focus include acquisition and development financing, senior and subordinated credit
Slide 22: Questions?
Questions? Please submit your using the Webex chat feature CONFIDENTIAL – Contains proprietary information. 22 Not intended for external distribution.
Slide 23: Coming Soon! Medicare Accelerated and Advance Payment Program Webinar
Coming Soon! Medicare Accelerated and Advance Payment Program Webinar Erik Larsen CONFIDENTIAL – Contains proprietary information. 23 Special Assets Group Not intended for external distribution.
Slide 24: Closing Remark and Next Steps
Closing Remark and Next Steps Sandra Morgan CONFIDENTIAL – Contains proprietary information. 24 Special Assets Group Not intended for external distribution.
Slide 25: Thank you!
Thank you! Access CARES Act, PPP and other COVID-19 resources here, including the following information packets: • Paycheck Protection Program • SBA Loan Workflow • Accelerated and Advance Payment Program • Health Care Provider Grant Program • The link to the recording is here. Use passcode nGZ39nRh