HCA Healthcare Stock

HCA Healthcare, Inc. operates as a health care service company in the United States. As of December 31, 2023, the company operated 186 hospitals, comprised of 178 general, acute care hospitals; six behavioral hospitals; and two rehabilitation hospitals. In addition, the company operated 124 freestanding surgery centers and 24 freestanding endoscopy centers. The company’s facilities are located in 20 states and England.

The company’s general, acute care hospitals typically provide a full range of services to accommodate such medical specialties as internal medicine, general surgery, cardiology, oncology, neurosurgery, orthopedics and obstetrics, as well as diagnostic and emergency services. Outpatient and ancillary health care services are provided by its general, acute care hospitals, freestanding surgery centers, freestanding emergency care facilities, urgent care facilities, walk-in clinics, diagnostic centers and rehabilitation facilities. The company’s behavioral hospitals provide a full range of mental health care services through inpatient, partial hospitalization and outpatient settings.

Business Strategy

The company is committed to providing the communities it serves with high quality, convenient and health care while growing its business and creating long-term value for its stockholders. The company strives to be the health care system of choice in the communities it serves by developing comprehensive networks locally and supporting these networks with enterprise expertise and economies of scale. The company’s strategy is organized around a framework that seeks to drive sustained growth by delivering operational excellence, attracting exceptional physicians and other health care professionals, developing comprehensive services; creating greater access, and coordinating higher quality care for patients. The key elements of the company’s strategy are to grow its presence in existing markets; achieve industry-leading performance in clinical, operational and satisfaction measures; recruit and retain physicians and other health care professionals to meet the need for high quality health services; continue to utilize economies of scale to grow the company; and pursue a disciplined development strategy.

The company’s strategy also emphasizes investments that seek to advance its clinical systems and digital capabilities, transform care models with innovative care solutions, expand its workforce development programs and enhance its health care networks and partnerships.

Health Care Facilities

The company owns, manages or operates hospitals, freestanding surgery centers, freestanding emergency care facilities, urgent care facilities, walk-in clinics, diagnostic and imaging centers, radiation and oncology therapy centers, comprehensive rehabilitation and physical therapy centers, physician practices, home health, hospice, outpatient physical therapy home and community-based services providers, and various other facilities.

As of December 31, 2023, the company owned and operated 178 general, acute care hospitals with 48,755 licensed beds. Most of the company’s general, acute care hospitals provide medical and surgical services, including inpatient care, intensive care, cardiac care, diagnostic services and emergency services. The general, acute care hospitals also provide outpatient services such as outpatient surgery, laboratory, radiology, respiratory therapy, cardiology and physical therapy. Each hospital has an organized medical staff and a local board of trustees or governing board comprised of members of the local community.

As of December 31, 2023, the company operated six behavioral hospitals with 653 licensed beds. The company’s behavioral hospitals provide therapeutic programs, including child, adolescent and adult psychiatric care and adolescent and adult alcohol and drug abuse treatment and counseling.

The company also operates outpatient health care facilities, which include freestanding ambulatory surgery centers (ASCs), freestanding emergency care facilities, urgent care facilities, walk-in clinics, diagnostic and imaging centers, comprehensive rehabilitation and physical therapy centers, radiation and oncology therapy centers, physician practices and various other facilities. These outpatient services are an integral component of the company’s strategy to develop comprehensive health care networks in select communities. Most of the company’s ASCs are operated through partnerships or limited liability companies, with majority ownership of each partnership or limited liability company typically held by a general partner or member that is an affiliate of HCA.

Certain of the company’s affiliates provide a variety of management services to its health care facilities, including patient safety programs, ethics and compliance programs, national supply contracts, equipment purchasing and leasing contracts, accounting, financial and clinical systems, governmental reimbursement assistance, construction planning and coordination, information technology systems and solutions, legal counsel, human resources services and internal audit services.

Sources of Revenue

The company receives payments for patient services from the federal government under the Medicare program, state governments under their respective Medicaid or similar programs, managed care plans (including plans offered through federal and state-based health insurance marketplaces (Exchanges)), private insurers and directly from patients. The company’s hospitals generally offer discounts from established charges to certain group purchasers of health care services, including private health insurers, employers, health maintenance organizations (HMOs), preferred provider organizations (PPOs) and other managed care plans, including health plans offered through the Exchanges.

Regulation

Each of the company’s acute care hospitals located in the United States is eligible to participate in Medicare and Medicaid programs.

Many states in which the company operates also have laws intended to prevent fraud and abuse within the health care industry. Some of these laws are similar to the Anti-kickback Statute, prohibiting payments to physicians for patient referrals, and to the Stark Law, prohibiting certain self-referrals.

The company is subject to state and federal laws that govern the submission of claims for reimbursement and prohibit the making of false claims or statements. One of the most prominent of these laws is the federal False Claims Act.

The company enforces compliance in accordance with the Health Insurance Portability and Accountability Act of 1996 (HIPAA) privacy and security regulations. The Information Protection and Security Department monitors the company’s compliance with the HIPAA privacy and security regulations.

All of the company’s hospitals in the United States are subject to the Emergency Medical Treatment and Labor Act.

Antitrust enforcement in the health care industry is a priority of the Federal Trade Commission and the Department of Justice, including with respect to hospital and physician practice acquisitions. The company is in compliance with such federal and state laws.

History

The company was founded in 1968. It was incorporated in Delaware in 2010. It was formerly known as HCA Holdings, Inc. and changed its name to HCA Healthcare, Inc. in 2017.