Hurricanes Helene and Milton blew in significant damage to some of HCA’s facilities.
HCA Healthcare released its fourth -quarter earnings report last month, placing the healthcare giant on positive revenue estimates but missing the mark by millions in lost revenues from two destructive hurricanes.
The report details a net income attributable to the health system of $5.760 billion, or $22.00 per diluted share, for 2024, compared to $5.242 billion, or $18.97 per diluted share, for 2023.
Hurricane damage
The report detailed that these loss estimates do not include any insurance recoveries the organization may receive. All facilities impacted by Hurricanes Helene and Milton have resumed normal operations.
The storms had a negative impact on HCA’s volumes, knocking off 20 to 40 basis points, CFO Mike Marks said on an investors call. HCA’s Largo Hospital in Tampa also contributed to additional operating expenses in supplies and repair costs.
Share repurchase program
HCA’s Board of Directors has authorized an additional share repurchase program for up to $10 billion of the organization’s outstanding common stock, as well as a $0.72 per share quarterly dividend. Balance sheets reflected a $1.93 billion cash and cash equivalents and total assets of $59.51 billion as of Dec. 31, 2024. The report added that the repurchase program has no time limit and may be suspended for periods or discontinued at any time.
Executive Take
"We finished 2024 with strong business fundamentals that were consistent with previous quarters," HCA Healthcare CEO Sam Hazen said. "The first half of the current decade, which ended in 2024, proved to be another period of long-term growth for the company and resulted in operational improvements across key performance indicators and greater value for our patients, employees and shareholders. These accomplishments are a testament to the incredible work of our teams, and position us well for the future."
Looking Ahead
The company issued 2025 guidance placing these projections:
-Revenues between $72.8 billion and $75.8 billion.
-Net income attributable to HCA of $5.85 billion to $6.29 billion.
-Adjusted EBITDA of $14.3 billion to $15.1 billion.
Additionally, the earnings call discussed the uncertainty that every health system is facing in the wake of the Trump administration’s new policies. Questions ranged from concerns about Trump’s sweeping tariffs, as well as decisions on the proposal of site-neutral payments and the uncertainty around federal subsidies.
For potential tariffs, Hazen said that HCA’s group purchasing organization is working on mitigation strategies for several years, including fixed-price contracting, supply chain mapping, and risk assessments. For 2025, HCA has roughly 70% of its supplies contracted with firm pricing, according to Hazen.
While the fate of federal healthcare subsidies is widely unknown right now, Marks said the implementation of any site-neutral policies wouldn’t force HCA to adjust its current strategy to reorganize its outpatient networks.
Marie DeFreitas is the CFO editor for HealthLeaders.
KEY TAKEAWAYS
HCA Healthcare has posted its fourth-quarter earnings.
The health system saw notable gains but also losses from hurricane setbacks.
Investors also discussed strategies as uncertain policies under the Trump administration come into play.