HCA Healthcare is a health care facility provider. It is an America-based operator and was founded in the ear 1968. It is the owner of 185 hospitals with 47,000 licensed beds and more than 2,000 health care sites at several different locations. HCA Healthcare itself operates all of them. Health care sites include free-standing emergency rooms, surgery centers, more than 1,250 physician clinics with 38,000 medical staff, and 130 urgent care centers. They are spread in 21 states and the United Kingdom. HCA integrates several services to maximize the efficiency and quality of patient care. It focuses and uses several approaches to provide the best services. These approaches include sharing technology, deploying personnel and equipment at required locations, focusing on quality, and streamlining operations.
Key Stats and Information
The price-to-earnings (TTM) of HCA Healthcare is 15.38, and price-to-sales (TTM) is at 0.97. It provides a return on investment at 12.02, whereas the return on equity stands at 9.47. Its 7.64 price-to-cash flow can determine the cash flow position of the healthcare facilitator.
The revenue and earnings per share or EPS of HCA Healthcare are on the rise for a few years. The current EPS is USD 10.495, where revenue is USD 51.2K MM.
A total of USD 24.3 Billion was invested for the growth of the company out of USD 35.7 Billion. In contrast, the other USD 381.3 Billion went in delivering the shareholder’s value, which included quarterly dividends, special dividends, and share repurchases.
The composition of the Board of Directors is publicly available on the website of HCA Healthcare. CEO Samuel N. Hazen leads the healthcare facility provider. He took the chair of the CEO on January 1, 2019. He was acting as the President and COO of HCA Healthcare since 2016. He was also the President of Operations from the year 2011-2015. He has served the company in various senior positions. One of them is the President of HCA Healthcare’s Western Group, which accounts for approximately half of the revenue of the company.
HCA Healthcare operates while following some of the strategic guiding principles. Development of future leaders, growing through physician and patient relationship, and industry-leading efficiency are some of those guiding principles.
Influence of Investors
HCA Inc. was acquired on November 17, 2006, by a private investor group. Significant interest was still there in the first-affiliated investors of HCA in its outstanding common stock, and it is around 20% currently in the year 2019. It was due to the investment Hercules Holding II. HCA entered the First-affiliate and Hercules Holdings II investors in accordance with a shareholders’ agreement. The members of the Board of Directors can be nominated by some of the representatives of these investors. So, the decision to enter into a corporate transaction can be influenced because of these investors. The Board of Directors can also influence the composition as they have the ability and right to prevent changes. Every transaction requiring stockholders’ approval can also be influenced and prevented if they don’t agree with it.
Assurance of Regular Dividends
HCA, in its 2018 annual report, announced that there is no assurance that it will keep providing investors with regular dividends. A dividend program was started in January 2018, which stated that it would be providing quarterly cash dividends to its investors regularly. Capital availability is one of the essential factors which affects the amount, timing, and declaration of the dividend. Available capital, future requirements, cash flow from operations, debt service requirement, acquisitions, investment, and repurchase of shares are some of the essential factors which may affect the dividends. The elimination or reduction in the number of dividends may affect the stock price. Overall, given the assurance, investor relations seem to be working better for the company and for those who plan to invest.
The financial performance recently has helped the HCA investor relations for good. It enhanced the revenue growth, and with proper expense management, the team has improved the revenue to more than 1.2 billion dollars, which are close to 11% in the water. The increase has become possible due to the combination of strong facilities growth and the increase in revenue from the recent acquisitions. From the perspective of facilities, the revenue has grown up to 6.3%, which is 700 million. The volume growth across the service categories was mostly based on the broad, and the balance in the market has grown up to 13 of 14 domestic why division. The growth in the inpatient admissions also has risen up to 3.2%, and as for the current status, they have the same facilities inpatient services present in 22 consecutive quarters. Also, admission grew up to 4.2 % for the equivalent, while the Emergency Room visits improved after 4.1%. Now, the surgery improves 2.2%, while the outpatient surgeries grew by 2.6%. The revenue growth has turned into solid earnings, especially in the quarter with diluted earnings for every share of 2.23$. It excludes the gains made on sales of facilities and the losses brought by the debt retirement.
HCA Healthcare is an America-based healthcare service provider. The stocks of HCA Healthcare Inc. are traded at the New York Stock Exchange. The symbol denoted is “HCA”. The transfer agent of HCA Healthcare is EQ Shareowner Services. Their transfer agent helps their investors in services related to the shareowner, such as address change, stock certificate lost, stock transfers, account status, and name changes. Other Administrative services are also provided to the investors by their transfer agent.
HCA has been able to get a competitive advantage in the local market by leveraging the capability and scale of the company as it is now a patient’s provider system of choice.