HCA Healthcare, Inc. · NYSE:HCA
HCA Healthcare — Q3 2022 Earnings Presentation
33 slides from HCA Healthcare's earnings presentation, 2022
Slide 1: Investor Update Q3 2022
HCA Healthcare* Investor Update Q3 2022
Slide 2: Forward looking statements and non-GAAP financial measures
Forward looking statements and non-GAAP financial measures This presentation contains 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-looking
Slide 3: About HCA Healthcare
About HCA Healthcare 3
Slide 4: Our mission and vision
Our mission Our vision Above all else, Be the healthcare we are committed network of choice to the care and in the communities improvement of we serve. human life. 4
Slide 5: HCA Healthcare
HCA Healthcare HCA Healthcare is one of the nation’s leading providers of healthcare services, comprised of Our Network* 182 hospitals and approximately 2,400 Hospitals FSERs ASCs UCCs ambulatory sites of care in 20 states and the United Kingdom. 182 127 125 257 Our Patients** Patient ER Visits Admi
Slide 6: Strong presence in attractive high growth markets
Strong presence in attractive high growth markets 27.2% Salt Lake Denver Northern Kansas Virginia City San Jose Wichita SWVA Las HCA Healthcare’s Vegas Nashville Richmond Enterprise Market Share Southern California Western North Myrtle Carolina Beach El Paso Austin DFW Charleston Orlando Savannah Re
Slide 7: Complementary assets expand capabilities of the enterprise
Complementary assets expand capabilities of the enterprise Enabling Capabilities The Cancer Institute of HCA Healthcare offers A healthcare performance improvement One of the largest revenue cycle integrated cancer treatments with convenient company providing GPO, supply chain, and organizations in
Slide 8: Our Strategy
Our Strategy 8
Slide 9: HCA Healthcare Strategy Framework
HCA Healthcare Strategy Framework Our Mission Our Vision Above all else, we are Be the healthcare committed to the care system of choice in the and improvement of communities we serve. Deliver operational human life. excellence Coordinate Attract better care exceptional Sustainable for patients r Gr
Slide 10: Strategy for network approach in large, growing markets
Strategy for network approach in large, growing markets 1 Develop comprehensive healthcare networks locally that deliver high quality, convenient care to our patients at a reasonable cost. Deliver operational excellence Create greater access • Clinical excellence • Emergency care • Service excellenc
Slide 11: Enterprise capabilities
Enterprise capabilities 2 Develop enterprise capabilities to support these networks with expertise and economies of scale. Workforce development Care transformation Partnerships • Clinical education strategy • Staffing & scheduling • Johnson & Johnson • Galen College of Nursing • Labor & delivery •
Slide 12: Scaled solutions with responsiveness to local markets
Scaled solutions with responsiveness to local markets Scaled support occurs enterprise-wide with local market intelligence American Group National Group 86 Hospitals | 23.3k Beds 96 Hospitals | 25.9k Beds North Central & San East West South North TriStar Texas West Texas Antonio Florida Florida Atla
Slide 13: HCA Healthcare's strategic focus
Financial Strength Diversified Portfolio Improve our business HCA Drive growth Healthcare’s strategic Speed to market Experienced Leadership focus Support execution Strong and efficiency Operating Culture Scale 13 Investor Update
Slide 14: Comprehensive access across the continuum: Nashville
Comprehensive access across the continuum Nashville, TN Market Total Sites of Care >115 Hospitals 10 Freestanding ERs 6 CareNow Urgent Care Centers 18 Ambulatory Surgery/Endoscopy Centers 7 Physician Practice Locations >80 Active/Affiliated Medical Staff >1,800 Figures as of June 2022 14 Investor Up
Slide 15: Comprehensive access across the continuum: Dallas-Fort Worth
Comprehensive access across the continuum Dallas-Fort Worth, TX Market Total Sites of Care >200 Hospitals 13 Freestanding ERs 6 CareNow Urgent Care Centers 47 Ambulatory Surgery/Endoscopy Centers 12 Physician Practice Locations >120 Active/Affiliated Medical Staff >4,100 Figures as of June 2022 15 I
Slide 16: Partnering with physicians
Partnering with physicians Current Provider Workforce* VOICE 45,610 5,206 3,510 Active/Affiliated Employed Advanced Practice Medical Staff Physicians Providers PHYSICIAN (Employed/Managed) (Employed/Managed) ENGAGEMENT Graduate Medical Education** TIME GROWTH 320 GME programs CLINICAL CAPABILITIES 5
Slide 17: HCA Healthcare's high quality care
HCA Healthcare’s high quality care Dedication to our patients Recognition 2.1M 14M 14 Magnet designated hospitals American Nurses Credentialing 24 Hospitals recognized as Merative 100 Top Hospitals 2022 annual hospital physician and Center (ANCC) as of July 2022 (former IBM Watson Health) admissions
Slide 18: Scaling clinical solutions to further medicine
Scaling clinical solutions to further medicine Nursing Care Transformation & Clinical Excellence Physician Services • Advocacy & Leadership Innovation (CT&I) • Regulatory and safety • Operate physician practices • Reducing nurse • Clinically led care design and and urgent care clinics to • Performan
Slide 19: Our response to the COVID-19 pandemic
Our response to the COVID-19 pandemic Treated over Shared learnings Formed consortium of Followed all federal 271,000 COVID and spearheaded prominent public and private and state guidelines inpatients since the research, with institutions to improve HealthTrust start of the almost 50 clinical outcom
Slide 20: Our approach to ESG
Our approach to ESG Our People: HCA Healthcare is committed to strengthening the diversity of our workforce and investing in the well-being of our colleagues and their families. Awards/recognitions: Our Patients: As one of the nation’s leading healthcare providers, HCA Healthcare’s • HCA Healthcare
Slide 21: Social responsibility: Our people
Social responsibility: Our people 284K employees* Mental and wellness Financial support Professional Workplace safety • Nurse Care, free confidential • Adequate and competitive development • Employee Safety Committee support & counseling compensation • Nurse Residency program • Monitor for potential
Slide 22: Social responsibility: Our communities
Social responsibility: Our communities We impact our local communities* Healthier Tomorrow Fund • 284K employees across 20 states and the United Kingdom • May 2021: announced $80M Community Impact Fund for grants to nonprofit organizations in 25 cities where we • $26.8B payroll and benefits operate
Slide 23: HCA Healthcare's Consistent Long-Term Growth
HCA Healthcare’s Consistent Long-Term Growth 23
Slide 24: Our strategy has produced consistent long-term growth
Our strategy has produced consistent long-term growth Admissions Equivalent Emergency Surgeries Revenues Admissions Room Visits 5 year CAGR1 2.0% 5 year CAGR1 0.8% 5 year CAGR1 2.1% 5 year CAGR1 0.2% 5 year CAGR1 7.2% 20212 2.09M 20212 1.53M 20212 3.54M 20212 8.48M 20212 $58.8B 1 Percentages represe
Slide 25: Long-term track record deploying a balanced allocation of capital
Long-term track record deploying a balanced allocation of capital, returning value to shareholders over the past 11 years Delivering Investing in Growth Shareholder Value $32.7B $3.2B Capital expenditures Special dividends $10.1B Cash flow from $2.3B Acquisition capital operations Quarterly dividend
Slide 26: Committed to ensuring capacity and access
Committed to ensuring capacity and access -- $42.8B invested since the 2011 IPO Annual capital investment in billions 2022-23 Pipeline* $6.0 25.00% $5.5 $5.0 20.00% 1,251 $4.5 $4.0 $1.11 Inpatient Beds $3.5 15.00% $3.0 $2.5 10.00% $2.0 $3.58 526 $1.5 5.00% $1.0 ER/FSER Beds $0.5 $0.0 0.00% 2011** 20
Slide 27: Debt
Debt Debt Maturity Schedule, $ in millions $6,000 $37.71B* Public Debt - Unsecured Bank Term Debt Debt as of 9/30/22 $5,000 10.5% $4,000 $3,000 $2,000 Floating Rate Fixed Rate $1,000 $0 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2036 2039 2042 2047 2049 2051 2052 2095 Bank Term Debt
Slide 28: HCA Healthcare Financial Results
HCA Healthcare Financial Results 28
Slide 29: Consolidated Comprehensive Income Statements
Consolidated Comprehensive Income Statements (Dollars in millions, except per share amounts) Third Quarter For the Nine Months Ended September 30 2022 2021 2022 2021 Amount Ratio Amount Ratio Amount Ratio Amount Ratio Revenues $14,971 100.0% $15,276 100% $44,736 100.0% $43,688 100% Salaries and bene
Slide 30: Consolidated Balance Sheets
Consolidated Balance Sheets (Dollars in millions) Assets September 30, June 30, December 31, Liabilities and September 30, June 30, December 31, 2022 2022 2021 2022 2022 2021 stockholders' (deficit) equity Cash and cash equivalents $999 $858 $1,451 Accounts payable $4,161 $3,742 $4,111 Accounts rece
Slide 31: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows For the Nine Months Ended September 30, 2022 and 2021 (Dollars in millions) Cash flows from operating activities: 2022 2021 Cash flows from financing activities: 2022 2021 Net income $4,188 $5,716 Issuances of long-term debt 5,976 4,337 Adjustments to reconcile
Slide 32: Operating Statistics
Operating Statistics For the Nine Months For the Nine Months Third Quarter Third Quarter Ended September 30 Ended September 30 2022 2021 2022 2021 Reported (Continued): 2022 2021 2022 2021 Operations: Emergency Room Visits 2,278,782 2,338,180 6,559,170 6,308,386 Number of Hospitals 182 183 182 183 %
Slide 33: Above all else, we are committed to the care and improvement of human life
Above all else, we are committed to the care and improvement of human life. 33