HCA stands for the best practices of medicine, using their reach, scale, and steadiness to change healthcare and to help groups flourish. One of the country’s driving suppliers of healthcare administrations, HCA is composed of privately, overseen, offices that incorporate 171 healing centers, and 118 free surgery focuses situated in 20 U.S. States and the United Kingdom (“HCA Healthcare,”1995-2017). From the earliest starting point, HCA originators Dr. Thomas First, Sr., Dr. Thomas Frist, Jr. & Jack Massey imagined making a human services organization with the scale, assets and clinical skill to give understanding, centered care when many groups were developing quickly and required more access to healthcare. In 1968, they shaped Hospital Corporation of America (HCA) – one of the primary doctor’s facility organizations in the United States (“HCA Healthcare,”1995-2017).
HCA is focused on conveying human services as it ought to be: persistent focus and for the benefit surprisingly, regardless of their condition. To accomplish this, we should be dynamic; we should be thoughtful. We should work with honesty, share our abilities and learn continuously (“HCA Healthcare,”1995-2017). The company follows the code of integrity always to do the right thing when no one is watching. The mission of many facilities is to provide world-class patient care.
Extraordinary medical services are mirrored off on an establishment of consideration, empathy, and regard – for our patients and each other. We will encourage a culture of incorporation over all ranges regardless of a man’s race, shading, religion, sex, national root, age, handicap, sexual introduction, sex personality or veteran status (“HCA Healthcare,”1995-2017). All professionals have required courses and refreshers of the code of conduct to stay updated on the constant upgrades of healthcare in hospital settings.
The HCA Ethics and Compliance Program guarantees that everybody related with HCA-subsidiary offices mirrors the Mission and Values Statement, the Fundamental Commitment to Stakeholders, and different norms put forward in the Code of Conduct. Taken together, these ways to deal with the operation of subsidiary offices set goal-oriented criteria for how we treat our patients, the doctors who rehearse in associated offices, each other and different gatherings with whom we collaborate. If everybody related with an HCA-subsidiary office mirrors these measures in his or her exercises, it will guarantee that we give caring, efficient, quality, patient-centered human services in all circumstances (“HCA Healthcare,”1995-2017).
“HCA believe the delivery of high-quality care and a positive patient experience are essential to sustaining our financial strength.” (“HCA Healthcare,”1995-2017).
HCA Financial Analysis
HCA has continuously proved that the company is striving every day to do better than the year before in which the financial aspect has proven numbers. “In 2016, HCA generated revenues of $41.5 billion, an increase of 4.6% over the prior year, net income before income taxes of $4.8 billion, an increase of 21.6% over the prior year, and Adjusted EBITDA of $8.2 billion, an increase of 3.8% over the prior year “(“2016 Annual report to shareholders”, n.d.). The company has been an outperformer in the industry compared to its competitors like Tenet Healthcare Corp, Community Health Systems Inc., and Universal Health Services. “As of March 31, 2017, HCA Holdings, Inc.’s balance sheet reflected cash and cash equivalents of $753 million, total debt of $31.514 billion, and total assets of $33.795 billion. During the first quarter of 2017, capital expenditures totaled $571 million, excluding acquisitions.”(“HCA Reports First Quarter 2017 Results”, 2017) HCA acquired three hospitals in Houston and an acute hospital in Georgia area, which will allow them to expand their healthcare facilities for people whenever and wherever. Due to the purchase of these four facilities, it is expected to bring in $1.5 billion in revenue to the company to contribute to the success. The company’s numbers speak for itself from the number of facilities but also the amount of revenue that is brought in by the facilities. Our diversified mix of facilities, settings, and services allow us to continue to grow and care for the people that need us.
Recommendations of findings
After going over the financial report, everything looked great. The company has continued to make a profit while ensuring that patients continue to receive the best care from all of their facilities while continuing to add services to the company and other healthcare facilities. According to HCA “The Company’s growth trend has been consistent and sustained. 2016 marked the ninth consecutive year HCA achieved same facility admissions and equivalent admissions growth, the tenth consecutive year for emergency room visit growth, and the third year in a row for surgical growth. During 2016, HCA produced $5.7 billion in operating cash ﬂow, up 19.4 percent over the prior year. Financial growth enabled them to not only to make signiﬁcant capital investments but to continue our vigorous share repurchase program, buying back a total of 36.3 million shares for a total of $2.8 billion. The high cash ﬂow allows HCA to be nimble in the marketplace and to respond to opportunities that enhance our competitive position in the health care landscape.” What can be updated with operations is that the staff needs to continue to receive training using the latest in medical technologies to serve better the patients who are served by HCA. Many physicians are open to learning new methods of surgery and connecting with other facilities remotely. Also, another recommendation would be to add urgent care clinics where healthcare would be more accessible to patients. The urgent care clinics would minimize the minor trauma patients from crowding emergency rooms where severe trauma patients would get seen quicker. The two recommendations would surely keep HCA’s success flowing, and more patients will come over for care based on the recognition, bringing in more revenue.
Throughout the financial statement, this company has shown great responsibility in listing all transactions so that they remain on top of accurate reporting. In the beginning, shareholders are aware by providing charts and graphs of financial information. The directors and executive officers released their annual reports for the public to view their content page, which was sufficiently detailed. Everything is user-friendly, so no confusion will occur when searching for specific information. A general vision of what the company goals and plans, as well as strategies to follow, are available for everyone to grasp. The company also provided their views about shared services in health care companies. Topics talked about were sources of revenue, views on Electronic Health Record Incentives and competition. HCA covered the HIPAA requirements as well as health care reform. Information on risk factors and healthcare quality is explained to avoid errors with patient care to continue providing world-class service.
If our team had the opportunity to start a business in healthcare, we would build a model to be just as successful as HCA.
Annual Report to Shareholders. (2016). Retrieved from http://investor.hcahealthcare.com/sites/hcahealthcare.investorhq.businesswire.com/files/report/file/HCA_2016_Annual_Report.pdf
HCA reports first quarter 2017 results. (2017). Retrieved from http://investor.hcahealthcare.com/press-release/hca-reports-first-quarter-2017-results
- HCA Healthcare. (1995-2017). Retrieved from http://hcahealthcare.com/about/our-mission-and-values.dot
HCA’s Annual Report Link to financial statements
- Kimmel, P. D., Weygandt, J. J., & Kieso, D. E. (2013). Accounting: Tools for Business Decision Making (5th Ed.). Hoboken, NJ: John Wiley & Sons, Inc.