EXHIBIT 11 COLUMBIA/HCA HEALTHCARE CORPORATION COMPUTATION OF EARNINGS PER COMMON AND COMMON EQUIVALENT SHARE FOR THE QUARTERS AND NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995 (DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS) QUARTER NINE MONTHS ----------------- ----------------- 1996 1995 1996 1995 -------- -------- -------- -------- PRIMARY EARNINGS PER SHARE: Earnings: Income before extraordinary charges..... $ 311 $ 274 $ 1,091 $ 710 Extraordinary charges on extinguishments of debt, net of income tax benefits.... - (7) - (103) -------- -------- -------- -------- Net income........................... $ 311 $ 267 $ 1,091 $ 607 ======== ======== ======== ======== Shares used in the computation (000): Weighted average shares outstanding..... 670,938 665,911 670,892 664,598 Dilutive effect of common stock equivalents............................ 6,479 8,249 6,922 7,680 -------- -------- -------- -------- Shares used in computing earnings per share................................ 677,417 674,160 677,814 672,278 ======== ======== ======== ======== Primary earnings per share: Income before extraordinary charges..... $ .46 $ .40 $ 1.61 $ 1.05 Extraordinary charges on extinguishments of debt................................ - (.01) - (.15) -------- -------- -------- -------- Net income........................... $ .46 $ .39 $ 1.61 $ .90 ======== ======== ======== ======== FULLY DILUTED EARNINGS PER SHARE: Earnings: Income before extraordinary charges..... $ 311 $ 274 $ 1,091 $ 710 Extraordinary charges on extinguishments of debt, net of income tax benefits.... - (7) - (103) -------- -------- -------- -------- Net income........................... $ 311 $ 267 $ 1,091 $ 607 ======== ======== ======== ======== Shares used in the computation (000): Weighted average shares outstanding..... 670,938 665,911 670,892 664,598 Dilutive effect of common stock equivalents............................ 6,831 8,515 7,222 8,255 -------- -------- -------- -------- Shares used in computing earnings per share................................ 677,769 674,426 678,114 672,853 ======== ======== ======== ======== Fully diluted earnings per share: Income before extraordinary charges..... $ .46 $ .40 $ 1.61 $ 1.05 Extraordinary charges on extinguishments of debt................................ - (.01) - (.15) -------- -------- -------- -------- Net income........................... $ .46 $ .39 $ 1.61 $ .90 ======== ======== ======== ======== 19