EXHIBIT 99.1
(HCA LOGO) news
FOR IMMEDIATE RELEASE
INVESTOR CONTACT: MEDIA CONTACT:
Mark Kimbrough Jeff Prescott
615-344-2688 615-344-5708
HCA Previews First Quarter 2006 Results
Nashville, Tenn., April 17, 2006 --- HCA (NYSE: HCA) announced today it expects
financial results for the quarter ended March 31, 2006 to be between $0.89 to
$0.93 per diluted share compared to $0.95 per diluted share in the first quarter
of 2005. Financial results for the first quarter of 2006 include gains on sales
of investments related to securities held by the Company's wholly-owned
insurance subsidiary of $75 million, or $0.11 per diluted share, compared to
gains of $9 million, or $0.01 per diluted share, in the first quarter of 2005.
The first quarter 2006 results also include additional compensation costs of $8
million, or $0.02 per diluted share, due to the expensing of stock options and
employee stock purchase plan shares associated with the January 1, 2006 adoption
of FASB Statement 123 (R), "Share-Based Payment."
The Company expects to report revenues of $6.415 billion for the first quarter
of 2006, compared to $6.182 billion in the same period of 2005. Same facility
revenues increased 5.0 percent, and same facility revenue per equivalent
admission increased 5.1 percent in the first quarter of 2006 (7.4 percent
increase when adjusted for uninsured discounts) compared to the previous year's
first quarter.
Preliminary volume statistics indicate that same facility equivalent admissions
decreased 0.1 percent and same facility admissions decreased 0.7 percent
compared to the prior year's first quarter. Volumes were weaker than anticipated
in certain markets, including those in Florida and Virginia. Flu-related
pulmonary admissions decreased by approximately 5,000 admissions, or 10.5
percent, compared to the prior year's first quarter. During the quarter,
inpatient surgeries grew 2.3 percent and outpatient surgeries increased 1.0
percent compared to the prior year's first quarter.
The provision for doubtful accounts in the first quarter of 2006 is expected to
approximate $596 million, or 9.3 percent of revenues, compared to $574 million,
or 9.3 percent of revenues, in the first quarter of 2005. Adjusted to reflect
uninsured discounts, in the first quarter of 2006 the provision of doubtful
accounts totaled approximately $852 million, or 12.8 percent of revenues,
compared with $683 million, or 10.9 percent of revenues in the first quarter of
2005. Uninsured discounts in the first quarter of 2006 were $256 million and
$109 million in the first
-1
quarter of 2005. The Company's uninsured discount policy, which became effective
in the first quarter of 2005, lowers revenues and the provision for doubtful
accounts by generally corresponding amounts. Charity care totaled $281 million
in the first quarter of 2006 compared to $284 million in the previous year's
period. Same facility uninsured admissions (including charity patients)
increased by 2,438 admissions, or 13.1 percent, in the first quarter of 2006
compared to the first quarter of 2005.
HCA plans to report complete results for the first quarter on April 25, 2006 and
any update to previously issued earnings guidance for 2006 will be provided at
that time. HCA will hold a conference call and web-cast to discuss the first
quarter results on April 25, 2006.
####
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements based on current
management expectations. Those forward-looking statements include all statements
other than those made solely with respect to historical fact, including
statements with respect to our earnings and guidance and our estimated results
of operations for the quarter ended March 31, 2006, which are subject to
finalization and contingencies associated with our quarterly financial and
accounting procedures. Numerous risks, uncertainties and other factors may cause
actual results to differ materially from those expressed in any forward-looking
statements. These factors include, but are not limited to, (1) increases in the
amount and risk of collectibility of uninsured accounts and deductibles and
copayment amounts for insured accounts, (2) the ability to achieve operating and
financial targets and achieve expected levels of patient volumes and control the
costs of providing services, (3) possible changes in the Medicare, Medicaid and
other state programs that may impact reimbursements to health care providers and
insurers, (4) the highly competitive nature of the health care business, (5)
changes in revenue mix and the ability to enter into and renew managed care
provider agreements on acceptable terms, (6) the efforts of insurers, health
care providers and others to contain health care costs, (7) the impact of our
charity care and uninsured discounting policies, (8) the outcome of our
continuing efforts to monitor, maintain and comply with appropriate laws,
regulations, policies and procedures and our corporate integrity agreement with
the government, (9) changes in federal, state or local regulations affecting the
health care industry, (10) delays in receiving payments for services provided,
(11) the ability to attract and retain qualified management and personnel,
including affiliated physicians, nurses and medical support personnel, (12) the
outcome of governmental investigations by the United States Attorney for the
Southern District of New York and the Securities and Exchange Commission (the
"SEC"), (13) the outcome of certain class action and derivative litigation filed
with respect to us, (14) the possible enactment of federal or state health care
reform, (15) the increased leverage resulting from the financing of our modified
"Dutch" auction tender offer, (16) the availability and terms of capital to fund
the expansion of our business, (17) the outcome of our negotiations with
LifePoint Hospitals Inc. in connection with the divestiture of certain hospitals
and our ability to successfully consummate the hospital divestitures on a timely
basis, (18) the
-2
continuing impact of hurricanes on our facilities and the ability to obtain
recoveries under our insurance policies, (19) fluctuations in the market value
of our common stock, (20) changes in accounting practices, (21) changes in
general economic conditions, (22) future divestitures which may result in
charges, (23) changes in business strategy or development plans, (24) the
outcome of pending and any future tax audits, appeals and litigation associated
with our tax positions, (25) potential liabilities and other claims that may be
asserted against us, (26) the ability to develop and implement the payroll and
human resources information systems within the expected time and cost
projections and, upon implementation, to realize the expected benefits and
efficiencies, and (27) other risk factors described in our Annual Report on Form
10-K and other filings with the SEC. Many of the factors that will determine our
future results are beyond our ability to control or predict. In light of the
significant uncertainties inherent in the forward-looking statements contained
herein, readers should not place undue reliance on forward-looking statements,
which reflect management's views only as of the date hereof. We undertake no
obligation to revise or update any forward-looking statements, or to make any
other forward-looking statements, whether as a result of new information, future
events or otherwise.
-3