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HCA Sees Revenue Growth and New CFO: Key Takeaways To Note

Analysis  |  By Amanda Norris  
   February 01, 2024

HCA released a positive Q4 2023 earnings report while simultaneously announcing a new CFO.

HCA Healthcare recorded revenues of $17.303 billion for the fourth quarter of 2023, a 11.6% increase compared to the same period in 2022.

Along with an increase in revenue, HCA also announced Mike Marks as it’s new CFO. Let’s get into the numbers, the new CFO, and what it all means.

HCA By The Numbers

According to its earnings report, the net income attributable to HCA Healthcare totaled $1.607 billion, or $5.93 per diluted share, compared to $2.081 billion, or $7.28 per diluted share, in the fourth quarter of 2022.

Adjusted EBITDA for the fourth quarter amounted to $3.618 billion, an increase of 13.7% year-over-year. Same facility admissions increased 3.1% and same facility equivalent admissions increased 3.9% in the fourth quarter of 2023 compared to the previous year.

How did HCA come out on top?

There are a few key items that played into the overall positive results:

Strong financial performance: HCA Healthcare reported solid financial performance in the fourth quarter of 2023, driven by strong demand for services across their portfolio of markets, facilities, and service lines.

Increase in admissions: Same facility admissions and equivalent admissions both saw an increase in the fourth quarter of 2023 compared to the prior year period. This indicates a higher demand for healthcare services, which is a positive trend for CFOs to note.

Revenue growth: HCA Healthcare's revenues for the year totaled $64.968 billion, compared to $60.233 billion for the previous year. Other CFOs can consider implementing strategies to drive revenue growth, such as expanding service lines or entering new markets as HCA has.

HCA's Newest CFO and Growth Plans

In its earnings report, HCA Healthcare also announced the retirement of their CFO, Bill Rutherford, after a 34-year career with the company.

Mike Marks, the current senior vice president of finance, will succeed Rutherford as the new CFO on May 1.

This is just one of the many CFO changes that HCA saw in 2023 across all of its subsidiaries. With all of these changes in financial management also comes HCA’s prediction that it will have substantial growth in 2024.

HCA placed its 2024 net income guidance between $5.2 billion and $5.6 billion, primarily due to its plans for expansion.

In November, the hospital operator laid out its expansion plans in its first investor day in 20 years, reflective of the organization's aim to go from "strength to strength," CEO Sam Hazen said at the time.

Those plans include investing billions of dollars to expand its service lines, increasing its market share in healthcare services from 27% to 29% by 2030, and targeting adjusted EBITDA growth of between 4% and 6% over the next five years.

HCA has $5.3 billion allocated for projects across the next two years, with about half ($2.7 billion) going to expansion and renovation, while $2 billion is earmarked for a roughly even spend on new inpatient and outpatient facilities, chief operating officer Jon Foster said.

Where the operator is focusing its growth efforts is in existing markets, such as Austin, Denver, and Nashville, where it is headquarter.

Amanda Norris is the Director of Content for HealthLeaders.

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