EXHIBIT 11 COLUMBIA/HCA HEALTHCARE CORPORATION COMPUTATION OF EARNINGS PER SHARE FOR THE QUARTERS AND SIX MONTHS ENDED JUNE 30, 1996 AND 1995 (DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS) QUARTER SIX MONTHS ----------------- ----------------- 1996 1995 1996 1995 -------- -------- -------- -------- PRIMARY EARNINGS PER SHARE: Earnings (loss): Income before extraordinary charges..... $ 364 $ 78 $ 780 $ 436 Extraordinary charges on extinguishments of debt, net of income tax benefits.... - (96) - (96) -------- -------- -------- -------- Net income (loss).................... $ 364 $ (18) $ 780 $ 340 ======== ======== ======== ======== Shares used in the computation (000): Weighted average shares outstanding..... 447,564 442,768 447,246 442,628 Dilutive effect of common stock equivalents............................ 4,419 4,902 4,762 4,930 -------- -------- -------- -------- Shares used in computing earnings per share................................ 451,983 447,670 452,008 447,558 ======== ======== ======== ======== Primary earnings per share: Income before extraordinary charges..... $ .81 $ .17 $ 1.73 $ .97 Extraordinary charges on extinguishments of debt................................ - (.21) - (.21) -------- -------- -------- -------- Net income (loss).................... $ .81 $ (.04) $ 1.73 $ .76 ======== ======== ======== ======== FULLY DILUTED EARNINGS PER SHARE: Earnings (loss): Income before extraordinary charges..... $ 364 $ 78 $ 780 $ 436 Extraordinary charges on extinguishments of debt, net of income tax benefits.... - (96) - (96) -------- -------- -------- -------- Net income (loss).................... $ 364 $ (18) $ 780 $ 340 ======== ======== ======== ======== Shares used in the computation (000): Weighted average shares outstanding..... 447,564 442,768 447,246 442,628 Dilutive effect of common stock equivalents............................ 4,512 5,159 4,945 5,416 -------- -------- -------- -------- Shares used in computing earnings per share ............................... 452,076 447,927 452,191 448,044 ======== ======== ======== ======== Fully diluted earnings per share: Income before extraordinary charges..... $ .81 $ .17 $ 1.73 $ .97 Extraordinary charges on extinguishments of debt................................ - (.21) - (.21) -------- -------- -------- -------- Net income (loss).................... $ .81 $ (.04) $ 1.73 $ .76 ======== ======== ======== ======== 18