CEOs have been pushing CFOs to lower labor costs, and it seems to be working for HCA Healthcare.
Coupled with an increase in patient volume, lower labor costs helped HCA Healthcare see higher profits in the second quarter of 2023.
HCA recently reported its second-quarter net income of $1.193 billion, compared to $1.155 billion at this time last year. Results included a $32 million loss due to facility sales and a $78 million charge related to debt retirement, according to its report shared with HealthLeaders.
While the systems' quarterly revenue rose 7% to $15.86 billion, its total expenses climbed 7.6% to $14.05 billion, including a 7.1% jump for salaries and benefits and a 7.7% increase for supplies.
On the positive, same facility admissions increased 2.2% and same facility equivalent admissions increased 3.7% in the second quarter of 2023, compared to the prior year period. Same facility emergency room visits also increased 3.7% in the second quarter of 2023.
On top of its increase in patient volume, HCA reduced its contract labor costs by 20% year over year, bolstering its revenue.
This increase in patient volume comes on the heels of a huge data breach that made vulnerable the personal information of nearly 11 million patients at scores of care venues in 20 states.
In a media release at the time, the Nashville-based for-profit health system said the information was "made available by an unknown and unauthorized party on an online forum." The exposed data included patients’ names addresses, emails, phone numbers, dates of birth, gender, service dates, locations, and appointment dates.
Amanda Norris is the Associate Content Manager of Finance, Payer, Revenue Cycle, and Strategy for HealthLeaders.