a6e54f6112f502433fe4a2fd747d1e1b.ppt
- Количество слайдов: 22
Draft UBS Global Healthcare Conference February 14, 2006 1 1
Draft Cautionary Note Regarding Forward-looking Statements HCA’s management will be making some forward-looking statements during today’s presentation. Those forward-looking statements are based on management’s current expectations and are subject to risks and uncertainties that may cause those forward looking statements to be materially incorrect. The presentation may contain certain (non-GAAP) measures – you may refer to the Company’s financial filings on Form 10 -K or Form 10 -Q for reconciliation. These non-GAAP financial measures should not be considered an alternative to GAAP financial measures. Certain of those risks and uncertainties are discussed in HCA’s filings with the Securities and Exchange Commission, including the company’s report on Form 10 -K and its quarterly reports on form 10 -Q, to which you are referred. Management cautions you not to rely on, and makes no promises to update any of the forward looking statements. 2 2
Hospital Corporation of America Draft NYSE: HCA § Largest, publicly traded, healthcare provider with • 182 hospitals • 94 freestanding surgery centers Located in 22 states, London, England Geneva, Switzerland Sky Ridge Medical Center Denver, CO Stone. Crest Medical Center Capital Regional Medical Center Nashville, TN Tallahassee, FL 3 3
HCA 2005 Highlights § Revenues totaled $24. 5 billion up 4. 3% (same facility Draft 4. 8%) § EPS (GAAP basis) up 24% to $3. 19 per diluted share § EPS excluding gains on sale of facilities, impairments, foreign tax repatriation and hurricane expenses, increased 15% § Cash flow from operations totaled $3. 2 billion vs. $3. 0 billion in 2004 § Repurchased 36. 7 million shares of stock ($1. 9 billion) § Increased dividend 13% to $0. 17 per quarter 4 4
Returns Improved in 2005 Draft Return Analysis % change from Prior Year 2005 2004 2003 Return on Stockholders’ Equity Return on Invested Capital 5 5
Revenue Per Unit Growth Draft Net Revenue / Adjusted Admission % change from Prior Year Ø Revenue trends favorable. Ø Favorable Medicare, Medicaid and managed care revenue yield per adjusted admission. 5. 4% Medicare Revenue/AA % Change from Prior Year 6. 3% 7. 5% Managed Care Revenue/AA % Change from Prior Year Medicaid Revenue/AA % Change from Prior Year *adjusted for uninsured discount 6 6
Expense Management Favorable Draft Cash Operating Expense/Adjusted Admission % Change from Prior Year Ø Effective expense management significantly contributed to favorable earnings performance. Same Facility 7 7
Solid Labor Management Ø Labor management favorable: Draft Manhours / Adjusted Admission % Change from Prior Year • Productivity improved Wage Rate % Change from Prior Year • Wages managed to efficient levels. Salary, Wages & Benefits % of Net Revenue • SWB as a % of net revenue favorable. *adjusted for uninsured discount As Reported 8 8
Volume Trends Draft 1999 2000 2001 2002 2003 2004 2005 +2. 7% +2. 8% +2. 7% +2. 5% +0. 6% +0. 7% +0. 1% +2. 5% +2. 6% +0. 0% Admissions Same Facility % Change from PY +1. 3% +1. 4% Equivalent Admissions Same Facility % Change from PY 9 9
Admission Trends Ø Admissions growth appears more favorable adjusting for change in DPUs and one day admits. +2. 7% Ø Adjusted admissions reflect continued growth in outpatient services and the observation day effect. Admissions Adjusting for DPU and one day admits % Change from Prior Year +1. 4% +0. 8% +0. 6% +2. 6% Draft +0. 8% +0. 1% +0. 7% One day admits DPU effect Admissions +1. 0% +0. 3% +0. 6% Adjusted Admissions % change from Prior Year DPU effect Admissions +2. 0% +0. 8% +1. 4% +0. 1% +1. 3% +0. 6% +1. 4% +0. 8% Same Facility 10 10
Physician Recruitment Primary Care Specialists 701 MOB Development • Currently 22 million square feet of medical office space in service. • Total occupancy is 79%. • 384 45% Draft Medical office square footage coming on line. 1, 300, 000 sq. ft. $220 M 47% 55% 53% 2004 2005 Total Number of Physicians Recruited 420, 000 sq. ft. $62 M 2005 2006 E • 83% increase in recruited physicians in 2005. • 76% recruited physicians using in-house service. 11 11
Uninsured Volume 2000 2001 2002 Draft 2003 2004 2005 Uninsured Admissions Same Facility % of Total Admissions 5. 1% N/A Dec YTD 5. 3% Oct Same Facility % Chg from Prior Year 5. 9% vs. PY 1. 9% vs. PY 7. 3% vs. PY 11. 6% 13. 7% vs. PY Oct Nov 15. 2% vs. PY 7. 2% vs. PY 3. 7% vs. PY 5. 4% Nov Dec +14. 7% +14. 3% +17. 0% 2004: +9. 7% Uninsured Admissions 5. 5% 3. 3% vs. PY 5. 1% vs. Dec 15. 0% vs. PY PY +9. 5% Dec YTD 15. 3% vs. PY *2002 Totals based on 2003 Prior Year Uninsured ER Visits Same Facility % of Total ER Visits 20. 4% Dec YTD` N/A 21. 1% 20. 6% 20. 3% Oct Nov Dec 12 12
Draft HCA Hospitals Located in Growth Markets § 182 Hospitals 94 Surgery Centers § Generally 25%-40% Market Share § 40% of facilities in Texas & Florida Denver +9% Kansas City +5% U. K. Las Vegas +22% Switzerland Richmond +8% Dallas/Ft. Worth +12% Nashville +8% Southern California +9% Percent Growth in Market Population 2000 -2005 Compared to the National Average of 4. 5% Panhandle +10% Houston +10% Austin +18% Dade +8% Palm Beach +11% Tampa Bay +8% 13 13
Socio-Demographics-Age Wave Draft Driving Healthcare Utilization 1. 56% 3 -Year CAGR Acute Care Utilization Index (2003=100) 125 1. 59% 3 -Year CAGR 1. 62% 3 -Year CAGR 1. 58% 3 -Year CAGR 121 119 120 2 1 -20 115 8% 1. 5 110 R AG C 103 102 100 98 100 97 96 95 1. 6% 113 1. 6% 1. 5% 110 106 1. 6% 115 112 1. 6% 108 105 3 00 2 1. 7% 117 1. 6% Baby Boomer Impact Accelerates 1. 5% 1. 6% 1. 5% 1. 4% 20 2 2 2 2 00 001 002 003 004 005 006 007 008 009 010 011 012 013 014 015 14 14
HCA Capital Expenditures Draft Capital Commitments: Dollars in Billions Houston, TX $517 million § Pearland, TX Billions Denver, CO 2003 2004 2005 2006 P $1. 84 $1. 52 $1. 6 $1. 9 new hospital (2007) $250 million § new children’s hospital/ expansion of 3 hospitals San Antonio, TX $165 million § new hospital with JV partner (2007) Atlanta, GA $130 million § Emory John’s Creek, new hospital (2007) Salt Lake City, UT $85 million § new hospital (2007/ 08) IT&S and Patient Safety New and Replacement Facilities Facility Expansion Projects Routine Capital 15 15
Capital Placed in Service by Year Draft 2005 projects typically approved 24 -30 months ago Average Timeframe Approved 18 mo. Design & Permits In Service Construction (Dollars in Millions) 9 mo. Western $249 $499 $373 $466 $641 $791 Eastern $427 $675 $450 $179 $500 $242 Total HCA $676 $1, 174 $823 $645 $1, 141 $1, 033 16 16
Draft 2005 Major Capital Projects Coming On Line Two new ASCs; one expansion Three new imaging centers Two new oncology centers Three Hospital-based imaging expansions Seven Hospital-based surgery expansions Outpatient $150 M (23%) 13 ICU/bed expansions Three major surgery expansions Eight ED expansions Seven Women’s Services expansions Inpatient $400 M (62%) Interior/Exterior renovations, parking garages, etc. Infrastructure $95 M (15%) Total $645 M 17 17
Draft 2006 Major Capital Projects Coming On Line Eight new ASCs; two expansions; one replacement 15 new imaging centers One new oncology center Three Hospital-based imaging expansions Six Hospital-based surgery expansions Eight medical office buildings (on balance sheet) Outpatient $290 M (26%) Inpatient 17 ICU/bed expansions Six major surgery expansions 11 ED expansions Six Women’s Services expansions $630 M (55%) Emory Johns Creek (118 beds and 135, 000 sq. ft. MOB) Replacement Facility $130 M (11%) Infrastructure $90 M (8%) Total $1. 14 B Interior/Exterior renovations, parking garages, etc. 18 18
2006 Outpatient Under Development Draft Excludes Hospital-based Development (Dollars in Millions) # of Centers Amount Ambulatory Surgery Centers 11 $65 Imaging Centers 15 73 Oncology Centers 1 4 Cath Lab 4 13 Freestanding ER 3 12 34 $167 Total 19 19
Outpatient Strategy Progressing Draft Transactions totaling $130 million completed 20– 30 imaging center and 8 -10 surgery center transactions expected to be completed over the next 12 months Diversified Radiology (Denver) 4 imaging centers/fifth under construction Austin Radiology Assoc. 2 imaging centers Sarah Cannon Research Institute (Nashville) Thousand Oaks Diagnostic Imaging First Health (Jacksonville) Hope Cancer Centers (Tallahassee) 3 centers Millcreek Imaging Center Salt Lake City, UT Ultra Open MRI (Tampa) 6 centers Total I Management, LLC (Tampa Bay Area) 5 imaging centers LAD Imaging Centers (Orange City, Deltona) MDI 7 Centers HCA Surgery Centers 20 20
HCA’s Cash Flow Remains Strong Draft Uses of Cash Net Cash Provided by Operating Activities Dollars in Millions (1) Capital Reinvestment $1. 6 B in 2005 in existing markets and $1. 9 B in 2006 (2) Share Repurchase Program $12 B in 8 years 36. 7 million shares purchased in 2005 6. 9% 11. 1 million shares purchased in 2006 under $1 B open-market authorization (3) Dividend Policy Approx. 20 to 25 percent payout (4) Acquisitions – opportunistic $1 B Health Midwest - April 2003 Austin, TX and Nashville, TN pending acquisitions (5) Debt Repayment Debt/ cap – 64. 8% at 12/31/05 * Reduced due to government settlement and investigation related costs 21 21
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a6e54f6112f502433fe4a2fd747d1e1b.ppt