HCA Healthcare, Inc. handled the storm well, all things considered. Despite market headwinds and tough labor conditions, HCA’s revenues in the third quarter of 2022 totaled $14.971 billion, compared to $15.276 billion in the third quarter of 2021, a drop of approximately 2%.
For the third quarter of 2022, adjusted EBITDA totaled $2.902 billion, compared to $3.224 billion in the third quarter of 2021.
“Despite a difficult comparison to the prior year due to the COVID-19 Delta variant, we are pleased with our results and the execution of our teams in a challenging operating environment, which included tremendous efforts from our courageous frontline caregivers and support teams who worked tirelessly to provide uninterrupted care during Hurricane Ian,” said Sam Hazen, Chief Executive Officer of HCA Healthcare, quoted in the company’s official press release.
Much of the decline in revenues and EBITDA was attributed to a decline in patient volumes, which experienced a surge last summer due to the wave of COVID-19 variants.
“Year over year comparisons were impacted by significantly higher COVID-19 volumes in the prior year, when COVID-19 represented 12.7% of same-facility admissions versus 5.2% in the current year quarter,” the release stated.
Not mentioned in the press release was the impact of inflation. During the earnings call, Mr. Hazen said “inflation is a pressure point” for the company, and it is the main reason HCA is holding off on submitting any forecasts for 2023. Inflation, and the government’s response, will have a big impact on the health system’s performance.
On the M&A front, HCA Healthcare hasn’t announced any large deals in the past several months. In August, it purchased Performance Health Surgery Center, a multi-specialty ambulatory surgery center in Fort Myers, Florida. It contains 14,910 square feet of space with four operating rooms and equipment for minimally invasive outpatient procedures. Back in April, it purchased BetterMed, a local chain of urgent care centers located in Virginia.
The largest transaction HCA announced this year is the acquisition of MD Now Urgent Care, Florida’s largest and fastest-growing urgent care provider. That deal, which was announced in January, was valued at $594 million and will complement HCA Healthcare’s plans to build three additional hospitals in the state.
