HCA Holdings 2012 Annual Report Download - page 79

HCA HOLDINGS, INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (continued)
Results of Operations (continued)
Operating Results Summary
The following are comparative summaries of operating results for the years ended December 31, 2012, 2011
and 2010 (dollars in millions):
2012 2011 2010
Amount Ratio Amount Ratio Amount Ratio
Revenues before provision for doubtful accounts ............... $36,783 $32,506 $30,683
Provision for doubtful accounts ............................. 3,770 2,824 2,648
Revenues ............................................... 33,013 100.0 29,682 100.0 28,035 100.0
Salaries and benefits ...................................... 15,089 45.7 13,440 45.3 12,484 44.5
Supplies ................................................ 5,717 17.3 5,179 17.4 4,961 17.7
Other operating expenses .................................. 6,048 18.3 5,470 18.5 5,004 17.9
Electronic health record incentive income ..................... (336) (1.0) (210) (0.7) — —
Equity in earnings of affiliates .............................. (36) (0.1) (258) (0.9) (282) (1.0)
Depreciation and amortization .............................. 1,679 5.1 1,465 4.9 1,421 5.0
Interest expense .......................................... 1,798 5.4 2,037 6.9 2,097 7.5
Gains on sales of facilities ................................. (15) — (142) (0.5) (4) —
Legal claim costs......................................... 175 0.5 —— ——
Gain on acquisition of controlling interest in equity investment .... ——(1,522) (5.1) — —
Impairments of long-lived assets ............................ —— — — 123 0.4
Losses on retirement of debt ................................ —— 481 1.6 — —
Termination of management agreement ....................... —— 181 0.6 — —
30,119 91.2 26,121 88.0 25,804 92.0
Income before income taxes ................................ 2,894 8.8 3,561 12.0 2,231 8.0
Provision for income taxes ................................. 888 2.7 719 2.4 658 2.4
Net income ............................................. 2,006 6.1 2,842 9.6 1,573 5.6
Net income attributable to noncontrolling interests .............. 401 1.2 377 1.3 366 1.3
Net income attributable to HCA Holdings, Inc. ................. $ 1,605 4.9 $ 2,465 8.3 $ 1,207 4.3
% changes from prior year:
Revenues ........................................... 11.2% 5.9% 4.7%
Income before income taxes ............................ (18.7) 59.6 11.5
Net income attributable to HCA Holdings, Inc. ............. (34.9) 104.3 14.5
Admissions(a) ....................................... 7.4 4.2 (0.1)
Equivalent admissions(b) .............................. 9.1 5.2 1.2
Revenue per equivalent admission ....................... 2.0 0.7 3.5
Same facility % changes from prior year(c):
Revenues ........................................... 4.5 3.3 4.6
Admissions(a) ....................................... 3.0 2.3 0.1
Equivalent admissions(b) .............................. 4.1 3.0 1.4
Revenue per equivalent admission ....................... 0.3 0.3 3.2
(a) Represents the total number of patients admitted to our hospitals and is used by management and certain investors as
a general measure of inpatient volume.
(b) Equivalent admissions are used by management and certain investors as a general measure of combined inpatient and
outpatient volume. Equivalent admissions are computed by multiplying admissions (inpatient volume) by the sum of
gross inpatient revenue and gross outpatient revenue and then dividing the resulting amount by gross inpatient revenue.
The equivalent admissions computation “equates” outpatient revenue to the volume measure (admissions) used to
measure inpatient volume, resulting in a general measure of combined inpatient and outpatient volume.
(c) Same facility information excludes the operations of hospitals and their related facilities that were either acquired,
divested or removed from service during the current and prior year.
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