cfdcca5ec7bc3571b657625bde1dcefa.ppt
- Количество слайдов: 24
Vic Campbell Senior Vice President Mark Kimbrough Vice President, Investor Relations Bryan Rogers President, Midwest Division Clifton Mills CFO, Midwest Division 1
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. 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
§ 187 Hospitals HCA Hospitals Located in Growth Markets 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% Dade +8% Tampa Bay +8% Austin +18% 3 Palm Beach +11%
What Will Drive HCA’s Future Success • Aging Population • Located in Large, Growth Markets • Capital Investments • Enhanced Outpatient Strategy • Quality and Patient Safety Initiatives • Prudent use of Company’s Strong Cash Flows 4
Inpatient Admissions and Outpatient Visits 1980 - 2003 5
Socio-Demographics—Age Wave 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 1. 6% 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 6
HCA Capital Expenditures 2000 $1. 2 Billions 2001 $1. 4 2002 $1. 7 2003 $1. 8 2004 $1. 5 2005 E $1. 5 Capital Commitments: Houston, TX $517 million $2. 0` § Pearland, TX Denver, CO $1. 5 new hospital (2007) $250 million § new children’s hospital/ expansion of 3 hospitals San Antonio, TX $165 million § new hospital with JV partner (2007) $1. 0 Atlanta, GA $130 million § Emory John’s Creek, new hospital (2007) $0. 5 Salt Lake City, UT $85 million § new hospital (2007/ 08) $0. 0 2001 2002 2003 2004 2005 E Note: Does not include potential new and replacement facilities. Shared Services New & Replacement Facilities Infrastructure Develop. , IT&S, & Pat. Safety Facility Expansion Projects ER Services Land & Improvements 8%/$325 12%/$505 M Midwest Division 33 ER Expansi ons Routine Capital Distribution of Capital Dollars 2005 and Beyond Outpatient Services/MOBs 11%/$480 M Replacement Facilities 10%/$420 M New and Expanded Services 16%/$690 M Three Facilities 511 Beds Open Heart, Cardiology Three New Facilities Oncology, etc. 310 Beds 1, 611 New Beds Surgery/Special Units 21%/$875 M 7 Beds 14%/$590 M New Facilities 8%/$340 M
Outpatient Strategy Progressing 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 Ultra Open MRI (Tampa) 6 centers Millcreek Imaging Center Salt Lake City, UT Total I Management, LLC (Tampa Bay Area) 5 imaging centers 8 LAD Imaging Centers (Orange City, Deltona) MDI 7 Centers HCA Surgery Centers
Volume 1999 2000 2001 2002 2003 2004 +2. 7% +2. 8% +2. 7% +2. 5% +0. 6% +0. 7% +2. 5% +2. 6% +0. 0% Admissions Same Facility % Change from PY Equivalent Admissions Same Facility % Change from PY 9 +1. 3% 2005
1999 SW&B Operating Expenses 39. 3% 2000 39. 0% 2001 39. 4% 2002 39. 2% 2003 38. 5% 2004 38. 4% 2005 39. 2% Sep YTD 1 Same Facility % of Net Revenue 16. 0% 15. 9% 16. 0% 16. 1% 7. 6% 7. 5% 7. 7% 8. 0% 16. 2% 16. 7% 17. 0% Sep YTD Supplies Same Facility % of Net Revenue Bad Debt 11. 4% 9. 6% Sep YTD 12. 2% As Reported % of Net Revenue § Adjusted for uninsured discounts 10. 1% 10
Uninsured 2000 2001 2002 HCA Financial History – 2005. ppt 2003 2004 2005 +5. 0% Uninsured Admissions Sep YTD Same Facility % of Total Admissions N/A +7. 7% 2004: +9. 7% Uninsured Admissions Same Facility % Chg from Prior Year 7. 2% vs. PY 2. 4% vs. PY 7. 5% vs. PY 11. 5% vs. PY 13. 7% vs. PY 15. 2% vs. PY 7. 1% vs. PY 3. 7% 3. 3% vs. PY PY Sep YTD 5. 1% vs. PY 15. 0% vs. PY +20. 2% Sep YTD Uninsured ER Visits Same Facility % of Total ER Visits N/A 11
Cash flow in 2005 Remains Positive Net Cash Provided by Operating Activities 1 Uses of Cash Dollars in Millions (1) Capital Reinvestment $1. 5 B in 2005 in existing markets and $1. 8 B in 2006 (2) Share Repurchase Program $11. 5 B in 8 years $1. 44 B “Dutch Auction” complete 28. 8 million shares $1 B open-market authorization (3) Dividend Policy Approx. $250 mm annually (4) Acquisitions – opportunistic $1 B Health Midwest - April 2003 2 Austin, TX- pending acquisition Excluding settlements with government agencies and investigation related costs. (5) Debt Repayment 1: 1999 -2003 are non-GAAP numbers 2: YTD 2005 - 9/30/05 12
In Summary We Have…. Great Assets Strong Cash Flows Prudent Financial Strategy Focused on Shareholder Value 13
Bryan Rogers, President Midwest Division 14
Midwest Division Hospitals The “Big Six” Hospitals: Research Medical Center Baptist-Lutheran Medical Center Overland Park Regional Medical Center Menorah Medical Center Independence Regional Health Center Medical Center of Independence Suburban /Rural/Specialty Hospitals: Allen County Hospital Lafayette Regional Health Center Lee’s Summit Hospital Research Belton Hospital Research Psychiatric Center 15
Kansas City Marketplace Kansas City Profile – – – • 26+ Full Service Acute Hospitals 6, 507 Licensed / 5, 254 Staffed Beds 3, 343 ADC 64% Occupancy (staffed) 1. 87 M Residents in MSA - 2004 5. 9% Population Growth 2004 -09 • CON PRO – Provider owned MCOs / dueling – No dominant systems – High “use rate” for service utilization – Available bed capacity – Lack of inpatient “niche” traction – Irrational capital spending by stand – Missouri: Certificate of Need state alone single hospital franchises – Low % of uninsured population – Low commodity pricing 16
2004 Kansas City Market Share 11 County Service Area 17
Characteristics of Health Midwest System Developed through Acquisition (13) Poor Management Control Systems Centralized Decision Making Declining Market Share Lack of Leadership Attempted Vertical Integration Low Employee Morale Lack of Capital Spending 18
Key Accomplishments - Growth § Recruited 54 New Physicians to Market § Managed Care Pricing: 9% 2004; 9% 2005 § ASC Development Projects Approved (Independence, MMC, OPRMC) § New Service Development § Pancreas / Transplant Services (RMC) § Gyn Oncology (OPRMC / RMC) § Trauma (OPRMC/Independence) § Open Heart Services (OPRMC / BLMC) § Cyberknife JV (MMC) § Chest Pain Accreditation § The Cancer Institute Unwind (Health Midwest/St. Luke’s Oncology JV) § CON Approval: Independence & Lee’s Summit § Imaging 19 Growth 2003 -2005 62%- MRI 38% - CT
Key Accomplishments – Cost /Efficiency • Labor Reductions • Closed Unprofitable Services (Skilled Nursing, Rehabilitation Units) • “Shed” Non-core Businesses (EHS, Trinity Manor, Fitness Center) • Built Flexible Workforce (implemented “All About Staffing”) • Case Management: Avoidable Day Reduction • Supply Chain Warehouse • PAS Implementation 20
Capital Investment Major Capital Initiatives: • $281 Million – New Independence Hospital ($196 M) & New Lee’s Summit Hospital ($85 M) • $92 Million – Research Medical Center (ER, Patient Rooms, Cancer, Imaging) • $25 Million – Overland Park Regional Health Center (Women’s Services & ICU) • $15 Million – Outpatient Strategy Development (ASC, JVs, etc. ) • $32 Million – Financial & Clinical Information System • $16 Million – Imaging Investment 21
New Replacement Hospitals Lee’s Summit Independence Site Summary: q 89 acres purchased for $15 M q Bed Profile Proposed: q 39 acres purchased for $8 M q Bed Profile Proposed: – – – q q Medical / Surgical Intensive Care Unit Women’s Services TOTAL ER Bays Surgical OR PACU Prep & Recovery – – – 48 10 6 64 14 treatment bays 4 8 positions 12 positions q q 22 Medical / Surgical Intensive Care Unit NICU (Level II & III) GYN/Antepartum Post Partum TOTAL ER Bays Surgical OR PACU Prep & Recovery 156 28 12 9 16 221 32 treatment bays 10 15 positions 30 positions
Stabilized Run Rate Admissions 23
Long Run Strategy #1: Growth: Increase Market Share in High Margin Services #2: Execute Capital Investment Strategy #3: Upgrade Quality / Satisfaction #4: HCA Goodwill / Communication Efforts #5: Execute Revenue Plan to Address Provider Reimbursement #6: Bed Consolidation #7: Shared Service Initiatives / Continued Reduction in Fixed Costs #8: Geographical Expansion into New Markets 24
cfdcca5ec7bc3571b657625bde1dcefa.ppt