HCA to Repay $6B in CARES Act Funding, Medicare Accelerated Payments

The Nashville-based for-profit hospital operator also anticipates revenues of $13.3 billion in Q3.

HCA Healthcare announced Thursday afternoon that it will return, or repay early, $6 billion in government funding provided as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act and Medicare accelerated payments.

According to a filing with the Securities and Exchange Commission (SEC), HCA said it plans to repay $4.4 billion received in Medicare accelerated payments and $1.6 billion received through the Provider Relief Fund distributions authorized by the CARES Act. 

C-suite perspective:

"We greatly appreciate the CARES Act funding and the policymakers who fought hard to ensure hospitals would have the essential resources during the pandemic," Sam Hazen, CEO of HCA Healthcare, said in a statement. "As the initial immediacy of the emergency has passed, and with more information, and more experience managing our operations during the pandemic, we believe returning these taxpayer dollars is appropriate and the socially responsible thing to do."

HCA, like many for-profit hospital organizations, suffered significant financial impacts related to the COVID-19 pandemic but was also able to mitigate the damage thanks to the stimulus packages passed by the federal government this spring.

According to the company's most recent earnings report, same facility admissions fell almost 13% during Q2, while same facility equivalent admissions declined just over 20%.

HCA's revenues fell more than $1.5 billion year-over-year and the company recorded losses on sales of facilities of $27 million, compared to gains of $18 million in Q2 2019.

Related: Impacted by COVID, HCA's Same Facility Admissions Fell Almost 13% During Q2

In addition to announcing the planned return of government funding, the Nashville-based for-profit hospital operator also said it anticipates revenues of $13.3 billion in Q3.

HCA stated that it expects income before taxes to total approximately $950 million and adjusted EBITDA to top $2 billion.

However, the company said it expects same facility admissions to decline by 4% during the quarter, same facility equivalent admissions to decline 9%, and same facility emergency room visits to decline 20%.

HCA indicated that it expects to report its Q3 2020 earnings on, or about, October 26.

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