10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2023

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 1-11239

HCA Healthcare, Inc.

(Exact name of registrant as specified in its charter)



Delaware	27-3865930
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

One Park Plaza Nashville, Tennessee	37203
(Address of principal executive offices)	(Zip Code)

(615) 344-9551

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:



Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Voting common stock, $.01 par value	HCA	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.



Large accelerated filer	☒	Accelerated filer	☐

Non-accelerated filer	☐	Smaller reporting company	☐

Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock as of the latest practicable date.


Class of Common Stock	Outstanding at April 24, 2023
Voting common stock, $.01 par value	275,189,800 shares

HCA HEALTHCARE, INC.

Form 10-Q

March 31, 2023



		Page of Form 10-Q
Part I.	Financial Information

Item 1.	Financial Statements (Unaudited):

	Condensed Consolidated Income Statements — for the quarters ended March 31, 2023 and 2022	3

	Condensed Consolidated Comprehensive Income Statements — for the quarters ended March 31, 2023 and 2022	4

	Condensed Consolidated Balance Sheets — March 31, 2023 and December 31, 2022	5

	Condensed Consolidated Statements of Stockholders’ Equity (Deficit) — for the quarters ended March 31, 2023 and 2022	6

	Condensed Consolidated Statements of Cash Flows — for the quarters ended March 31, 2023 and 2022	7

	Notes to Condensed Consolidated Financial Statements	8

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	16

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	26

Item 4.	Controls and Procedures	26

Part II.	Other Information

Item 1.	Legal Proceedings	26

Item 1A.	Risk Factors	26

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	26

Item 6.	Exhibits	27

Signatures		28

HCA HEALTHCARE, INC.

CONDENSED CONSOLIDATED INCOME STATEMENTS

FOR THE QUARTERS ENDED MARCH 31, 2023 AND 2022

Unaudited

(Dollars in millions, except per share amounts)


	2023		2022
Revenues	$	15,591	$	14,945

Salaries and benefits		7,084		6,939
Supplies		2,423		2,321
Other operating expenses		2,894		2,752
Equity in losses (earnings) of affiliates		18		(11	)
Depreciation and amortization		756		732
Interest expense		479		408
Losses (gains) on sales of facilities		15		(10	)
		13,669		13,131
Income before income taxes		1,922		1,814
Provision for income taxes		379		349
Net income		1,543		1,465
Net income attributable to noncontrolling interests		180		192
Net income attributable to HCA Healthcare, Inc.	$	1,363	$	1,273
Per share data:
Basic earnings	$	4.92	$	4.21
Diluted earnings	$	4.85	$	4.14
Shares used in earnings per share calculations (in millions):
Basic		276.910		302.446
Diluted		280.961		307.374

The accompanying notes are an integral part of the condensed consolidated financial statements.

HCA HEALTHCARE, INC.

CONDENSED CONSOLIDATED COMPREHENSIVE INCOME STATEMENTS

FOR THE QUARTERS ENDED MARCH 31, 2023 AND 2022

Unaudited

(Dollars in millions)


	2023		2022
Net income	$	1,543	$	1,465
Other comprehensive income (loss) before taxes:
Foreign currency translation		18		(34	)

Unrealized gains (losses) on available-for-sale securities		7		(26	)

Defined benefit plans		—		—
Pension costs included in salaries and benefits		—		2
		—		2

Change in fair value of derivative financial instruments		—		4
Interest costs included in interest expense		—		2
		—		6
Other comprehensive income (loss) before taxes		25		(52	)
Income taxes (benefits) related to other comprehensive income items		5		(9	)
Other comprehensive income (loss)		20		(43	)
Comprehensive income		1,563		1,422
Comprehensive income attributable to noncontrolling interests		180		192
Comprehensive income attributable to HCA Healthcare, Inc.	$	1,383	$	1,230

The accompanying notes are an integral part of the condensed consolidated financial statements.

HCA HEALTHCARE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

Unaudited

(Dollars in millions)


	March 31, 2023			December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents	$	842		$	908
Accounts receivable		8,657			8,891
Inventories		2,085			2,068
Other		1,957			1,776
		13,541			13,643

Property and equipment, at cost		55,463			54,757
Accumulated depreciation		(29,410	)		(29,182	)
		26,053			25,575

Investments of insurance subsidiaries		390			381
Investments in and advances to affiliates		786			823
Goodwill and other intangible assets		9,590			9,653
Right-of-use operating lease assets		2,032			2,065
Other		319			298
	$	52,711		$	52,438
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current liabilities:
Accounts payable	$	3,769		$	4,239
Accrued salaries		1,565			1,712
Other accrued expenses		3,316			3,581
Long-term debt due within one year		2,378			370
		11,028			9,902

Long-term debt, less debt issuance costs and discounts of $295 and $301		36,478			37,714
Professional liability risks		1,565			1,528
Right-of-use operating lease obligations		1,716			1,752
Income taxes and other liabilities		1,692			1,615

Stockholders’ equity (deficit):
Common stock $0.01 par; authorized 1,800,000,000 shares; outstanding 275,939,900 shares — 2023 and 277,378,300 shares — 2022		3			3
Accumulated other comprehensive loss		(470	)		(490	)
Retained deficit		(2,028	)		(2,280	)
Stockholders’ deficit attributable to HCA Healthcare, Inc.		(2,495	)		(2,767	)
Noncontrolling interests		2,727			2,694
		232			(73	)
	$	52,711		$	52,438

The accompanying notes are an integral part of the condensed consolidated financial statements.

HCA HEALTHCARE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT)

FOR THE QUARTERS ENDED MARCH 31, 2023 AND 2022

Unaudited

(Dollars in millions)


	Equity (Deficit) Attributable to HCA Healthcare, Inc.
						Capital			Accumulated						Equity
	Common Stock					in Excess			Other						Attributable to
	Shares			Par		of Par			Comprehensive			Retained			Noncontrolling
	(in millions)			Value		Value			Loss			Deficit			Interests			Total
Balances, December 31, 2021		305.477		$	3	$	—		$	(404	)	$	(532	)	$	2,422		$	1,489
Comprehensive income (loss)										(43	)		1,273			192			1,422
Repurchase of common stock		(8.375	)										(2,101	)					(2,101	)
Share-based benefit plans		1.879											(57	)					(57	)
Cash dividends declared ($0.56 per share)													(171	)					(171	)
Distributions																(171	)		(171	)
Other													(1	)		4			3
Balances, March 31, 2022		298.981			3		—			(447	)		(1,589	)		2,447			414
Comprehensive income (loss)										(68	)		1,155			224			1,311
Repurchase of common stock		(12.230	)				(111	)					(2,571	)					(2,682	)
Share-based benefit plans		0.253					118												118
Cash dividends declared ($0.56 per share)													(163	)					(163	)
Distributions																(162	)		(162	)
Other							(7	)								29			22
Balances, June 30, 2022		287.004			3		—			(515	)		(3,168	)		2,538			(1,142	)
Comprehensive income (loss)										(77	)		1,134			210			1,267
Repurchase of common stock		(3.361	)				(113	)					(585	)					(698	)
Share-based benefit plans		0.261					116												116
Cash dividends declared ($0.56 per share)													(162	)					(162	)
Distributions																(217	)		(217	)
Other							(3	)								61			58
Balances, September 30, 2022		283.904			3		—			(592	)		(2,781	)		2,592			(778	)
Comprehensive income										102			2,081			565			2,748
Repurchase of common stock		(6.781	)				(40	)					(1,479	)					(1,519	)
Share-based benefit plans		0.255					48					57							105
Cash dividends declared ($0.56 per share)													(159	)					(159	)
Distributions																(475	)		(475	)
Other							(8	)					1			12			5
Balances, December 31, 2022		277.378			3		—			(490	)		(2,280	)		2,694			(73	)
Comprehensive income										20			1,363			180			1,563
Repurchase of common stock		(3.340	)										(849	)					(849	)
Share-based benefit plans		1.902											(87	)					(87	)
Cash dividends declared ($0.60 per share)													(168	)					(168	)
Distributions																(187	)		(187	)
Other													(7	)		40			33
Balances, March 31, 2023		275.940		$	3	$	—		$	(470	)	$	(2,028	)	$	2,727		$	232

The accompanying notes are an integral part of the condensed consolidated financial statements.

HCA HEALTHCARE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE QUARTERS ENDED MARCH 31, 2023 AND 2022

Unaudited

(Dollars in millions)


	2023	2022
Cash flows from operating activities:		&