HCA first quarter profits up 12 percent

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Posted 1:37PM on Monday, April 22, 2002

NASHVILLE, Tenn. - HCA Inc., the nation's largest for-profit hospital chain, on Monday reported a 12 percent increase in first-quarter profit, exceeding Wall Street expectations. The Nashville-based company had net profit of $385 million, or 74 cents per share, up from $343 million, or 62 cents per share, for the first quarter of 2001. Excluding one-time charges, HCA had operating profit of $396 million, or 76 cents per share. That beat the predictions of Wall Street analysts surveyed by Thomson Financial/First Call by 4 cents. ``This is a continuation of the company's recent trend of solid results,'' said analyst Frank Morgan of Jefferies & Co. in Nashville. Morgan said the company is benefiting from higher volume and prices. Hospital revenue per admission increased 11.1 percent for the quarter, with admissions growing by 1.7 percent. The results are a key indicator of the company's fiscal health because they measure operations for hospitals owned by HCA for at least a year. Revenues were $4.9 billion, up 8.3 percent from $4.5 billion in the fourth quarter of 2000. ``We're extremely pleased,'' said Jack Bovender, HCA's chairman and chief executive officer. ``Strong revenue growth combined with sound cost management led to another excellent quarter for this company and its shareholders.'' During 2001, the company paid $95 million in criminal fines and $498 civil penalties as part of a December 2000 settlement with the federal government--the largest governmental fraud settlement in history. The settlement stemmed from Justice Department allegations that the company routinely inflated diagnoses and committed reporting and billing fraud to increase payments from Medicare and other government health care programs. Last month, the company announced it would repay the federal government $250 million to settle a separate dispute over unaudited Medicare and Medicaid billings. HCA operates 181 hospitals and 77 emergency surgery centers. In midday trading on the New York Stock Exchange, shares of HCA dropped 63 cents to $47.38 per share. ___ On the Net: HCA: www.hcahealthcare.com