HCA Holdings 2012 Annual Report Download - page 67

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HCA HOLDINGS, INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (continued)
Forward-Looking Statements (continued)
Medicaid incentive payments, and (21) other risk factors described in this annual report on Form 10-K. As a
consequence, current plans, anticipated actions and future financial position and results of operations may differ
from those expressed in any forward-looking statements made by or on behalf of HCA. You are cautioned not to
unduly rely on such forward-looking statements when evaluating the information presented in this report.
2012 Operations Summary
Net income attributable to HCA Holdings, Inc. totaled $1.605 billion, or $3.49 per diluted share, for 2012,
compared to $2.465 billion, or $4.97 per diluted share, for 2011. The 2012 results include legal claim costs of
$175 million (pretax), or $0.24 per diluted share, and net gains on sales of facilities of $15 million (pretax), or
$0.02 per diluted share. The 2011 results include net gains on sales of facilities of $142 million (pretax), or $0.16
per diluted share, a gain on the acquisition of controlling interest in an equity investment of $1.522 billion
(pretax), or $2.87 per diluted share, losses on retirement of debt of $481 million (pretax), or $0.61 per diluted
share, and termination of management agreement fees of $181 million (pretax), or $0.30 per diluted share. All
“per diluted share” disclosures are based upon amounts net of the applicable income taxes. Shares used for
diluted earnings per share were 459.403 million shares and 495.943 million shares for the years ended
December 31, 2012 and 2011, respectively. During March 2011, we completed the initial public offering of
87.719 million shares of our common stock, and during September 2011, we repurchased 80.771 million shares
of our common stock.
Revenues increased to $33.013 billion for 2012 from $29.682 billion for 2011. Revenues increased 11.2%
and 4.5%, respectively, on a consolidated basis and on a same facility basis for 2012, compared to 2011. The
consolidated revenues increase can be primarily attributed to the combined impact of a 2.0% increase in revenue
per equivalent admission and a 9.1% increase in equivalent admissions. The same facility revenues increase
resulted primarily from a 0.3% increase in same facility revenue per equivalent admission and a 4.1% increase in
same facility equivalent admissions. We have continued to experience a shift in service mix from more complex
surgical cases to less acute medical cases, resulting in lower than anticipated revenue per equivalent admission
growth for 2012. The increase in consolidated revenues (and consolidated volume metrics) for 2012 compared to
2011 is related primarily to the impact of the financial consolidation of the HCA-HealthONE LLC
(“HealthONE”) venture for periods subsequent to our acquisition of controlling interests during October 2011.
The HealthONE venture’s operating results and volume metrics are not included in our same facility amounts.
During 2012, consolidated admissions increased 7.4% and same facility admissions increased 3.0%,
compared to 2011. Inpatient surgical volumes increased 4.5% on a consolidated basis and declined 0.1% on a
same facility basis during 2012, compared to 2011. Outpatient surgical volumes increased 9.3% on a
consolidated basis and increased 0.9% on a same facility basis during 2012, compared to 2011. Emergency room
visits increased 12.5% on a consolidated basis and increased 8.6% on a same facility basis during 2012,
compared to 2011.
For 2012, the provision for doubtful accounts increased $946 million, compared to 2011. The self-pay
revenue deductions for charity care and uninsured discounts increased $410 million and $1.271 billion,
respectively, for 2012, compared to 2011. The sum of the provision for doubtful accounts, uninsured discounts
and charity care, as a percentage of the sum of revenues, the provision for doubtful accounts, uninsured discounts
and charity care, was 29.5% for 2012, compared to 27.4% for 2011. Same facility uninsured admissions
increased 9.7% and same facility uninsured emergency room visits increased 8.9% for 2012, compared to 2011.
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