NASHVILLE, Tenn. — Hospital Corp. of America (HCA) announced financial and operating results for its fourth quarter ended December 31, 2008.
Revenues during the fourth quarter of 2008 totaled $7.2 billion, compared to $6.88 billion in the fourth quarter of 2007. On a same facility basis, revenues in the fourth quarter of 2008 increased 6.8 percent compared to the fourth quarter of 2007. Adjusted EBITDA in the fourth quarter of 2008 totaled $1.24 billion, compared to $1.15 billion in the fourth quarter of 2007. Net income for the fourth quarter of 2008 totaled $276 million, compared to $278 million in the fourth quarter of 2007. Results for the fourth quarter of 2008 include gains on sales of facilities of $7 million compared to $139 million in the fourth quarter of 2007. Fourth quarter 2008 results also include an $11 million charge for impairment of long-lived assets.
The provision for doubtful accounts decreased to $889 million, or 12.2 percent of revenues, in the fourth quarter of 2008 from $912 million, or 13.2 percent of revenues, in the fourth quarter of 2007. Same facility uninsured admissions decreased 0.4 percent in the fourth quarter of 2008 compared to the fourth quarter of 2007.
Interest expense decreased to $500 million in the fourth quarter of 2008, compared to $541 million in the fourth quarter of 2007, due primarily to a reduction in the average effective interest rate on total debt.
The provision for income taxes resulted in low effective tax rates for the fourth quarters of both 2008 (11 percent effective tax rate) and 2007 (20 percent effective tax rate). The provision for income taxes for the fourth quarter of 2008 was reduced, primarily due to a favorable revision to the proposed disallowance of a portion of prior period expense and related interest. The provision for income taxes for the fourth quarter of 2007 was reduced, primarily due to the recognition of certain state tax benefits.
Same facility admissions increased 0.5 percent and same facility equivalent admissions increased 1.8 percent in the fourth quarter of 2008 compared to the fourth quarter of 2007. Same facility inpatient surgeries declined 0.7 percent, while outpatient surgeries increased 1.1 percent in the fourth quarter of 2008 compared to the fourth quarter of 2007. Same facility revenue per equivalent admission increased 4.8 percent in the fourth quarter of 2008 compared to the fourth quarter of 2007. Same facility charity and uninsured discounts totaled $985 million in the fourth quarter of 2008 compared to $781 million in the fourth quarter of 2007.
Revenues for 2008 increased 5.6 percent to $28.37 billion compared to $26.86 billion in 2007. Adjusted EBITDA totaled $4.57 billion for 2008 compared to $4.59 billion in 2007. Net income totaled $673 million for 2008 compared to $874 million in 2007. The operating results include gains on sales of facilities of $97 million in 2008 compared to $471 million in 2007 and impairments of long-lived assets of $64 million in 2008 compared to $24 million in 2007.
As of Dec. 31, 2008, HCA's balance sheet reflected cash and cash equivalents of $465 million, total debt of $26.99 billion, and total assets of $24.28 billion. Capital expenditures totaled $485 million for the fourth quarter of 2008 and $1.6 billion for 2008.
As of Dec. 31, 2008, HCA operated 166 hospitals and 105 freestanding surgery centers, including eight hospitals and eight freestanding surgery centers operated through equity method joint ventures.
Source: HCA