1 / 27

Mark Kimbrough VP, Investor Relations Chuck Hall President, North Florida Division

Mark Kimbrough VP, Investor Relations Chuck Hall President, North Florida Division. Cautionary Note Regarding Forward-looking Statements.

elliot
Télécharger la présentation

Mark Kimbrough VP, Investor Relations Chuck Hall President, North Florida Division

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Mark Kimbrough VP, Investor Relations Chuck Hall President, North Florida Division

  2. 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.

  3. Collective Knowledge 190,000 employees 189 hospitals 92 surgery centers 14 million patients treated annually 5.2 million emergency room visits annually

  4. What Will Drive HCA’s Future Success • Located in Large, Growth Markets and Aging Population • Capital Investments • Quality Initiatives • Patient Safety • Prudent use of Company’s Strong Cash Flows

  5. Kansas City +5% Denver +9% Las Vegas +22% Richmond +8% Nashville +8% Austin +18% Southern California +9% Panhandle +10% Palm Beach +11% Houston +10% Dade +8% Dallas/Ft. Worth +12% Tampa Bay +8% HCA Hospitals Locatedin Growth Markets • Generally 25%-40% Market Share • 40% of facilities in Texas & Florida U.K. Switzerland Percent Growth in Market Population 2000-2005 Compared to the National Average of 4.5%

  6. Improving unemployment rate in mid-2003 implies mid-2005 rebound in admissions 4% 4% 3% 5% 2% 1% 6% 0% 7% -1% Inpatient Admissions Growth Unemployment Rate -2% 8% 2 YearLagged -3% Correlation -4% 2 9% - R of 0.74 since 1980 2 - R of 0.66 since 1978 -5% 2 - R of 0.48 since 1970 10% -6% 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1977 1950 1955 1960 1965 1970 1971 1972 1973 1974 1975 1976 1999 2000 2001 2002 2003 2004YTD Unemployment Rate Inpatient Admissions Growth Source: American Hospital Association, Bureau of Labor Statistics and Goldman Sachs Research estimates.

  7. 1.62% 3-Year CAGR 1.56% 3-Year CAGR 1.59% 3-Year CAGR 1.58% 3-Year CAGR 125 121 119 120 1.7% 117 1.6% 115 1.6% 113 1.58% CAGR 2003-2012 115 1.6% 112 1.5% 110 1.6% 108 110 106 1.6% 105 1.6% 103 1.6% 105 102 1.6% 100 1.6% 98 1.5% 100 97 1.6% 96 1.5% 1.4% 95 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Socio-Demographics—Age WaveDriving Healthcare Utilization Acute Care Utilization Index (2003=100) Baby Boomer Impact Accelerates

  8. What Will Drive HCA’s Future Success • Capital Investments

  9. Investments in Our Facilities $7.6 billion in existing facilities since 2000 ($1.5 billion ’04) $35,700 per bed annually $130 million in information technology $300 million in patient safety technologies since ’97

  10. Distribution of Capital Dollars Remains Unchanged2003 and beyond Ongoing Projects in Capital Plan Three Facilities 511 Beds 33 ER Expansions Open Heart, Cardiology Oncology, etc. Three New Facilities 310 Beds 56 Facilities with Surgery and/or ICU/CCU expansions 1,611 New Beds Represents $4.2B of projects

  11. Diversified Radiology (Denver) 4 imaging centers/fifth under construction Austin Radiology Assoc. 2 imaging centers Thousand Oaks Diagnostic Imaging LAD Imaging Centers (Orange City, Deltona) Sarah Cannon Research Institute (Nashville) Millcreek Imaging Center Salt Lake City, UT HCA Surgery Centers Outpatient Strategy Progressing Transactions totaling $62 million completed 20–30 imaging center and 8-10 surgery center transactions expected to be completed over the next 12 months Total I Management, LLC Tampa Bay Area/5 imaging centers

  12. What Will Drive HCA’s Future Success • Quality Initiatives

  13. Our Recognition for Quality

  14. Satisfied Physicians HCA physicians rank our facilities higher than that of other hospitals across the country Source: Gallup Satisfaction Surveys 2003

  15. Our Commitment to Quality HCA Quality Review System (QRS) An internal process that provides ongoing assurance that patient care servicesin HCA hospitals meet defined quality standards.

  16. Our Commitment to Quality QRS surveys analyze clinical performance using: JCAHO survey scores Professional liability risk exposure Patient, employee, and physician satisfaction results

  17. Our Commitment to Quality

  18. What Will Drive HCA’s Future Success • Patient Safety

  19. Our Commitment to Patient Safety HCA Has Invested Over $300 Million In Patient Safety Technologies Since ’97

  20. Our Commitment to Patient Safety eMAR & Barcoding Ensures the five “R’s” – right patient, right medication, right dose, right time, right route of administration The benefit to our patients… Prevents the error patients fear most … getting the wrong medication

  21. Our Commitment to Patient Safety Electronic Provider Order Management (ePOM) Allows physicians to input prescriptions and patient orders electronically and transmit them directly to a pharmacy or hospital department The benefit to our patients… Eliminates the risk of a pharmacist or clinician misreading a physician’s handwriting

  22. Our Commitment to Patient Safety ePOM - Safety Alerts Drug allergies Dose warnings Duplicate orders Abnormal results Severe drug interactions Common test interactions Age limits for certain drugs

  23. Addressing Medication Errors (ADES) eMAR & Barcoding ePOM Bates DW et al. Incidence of adverse drug events, potential adverse drug events. JAMA 1995;274:29-34.

  24. What Will Drive HCA’s Future Success • Prudent use of Company’s Strong Cash Flows

  25. Capital Reinvestment $1.5B in 2004 Share Repurchase Program $10.0B in 8 years $2.5B “Dutch Auction” completed at $39.76 in Fourth Quarter 2004 New Dividend Policy $250mm annually Cash flow in 2004 Remains Positive Net Cash Provided by Operating Activities1 Dollars in Millions 8.0% Excluding settlements with government agencies and investigation related costs. 1: 1999-2003 are non-GAAP numbers

  26. 650M Shares 12/31/96 423M Shares2 12/31/04 Avg Share Price $7.5 Billion 249 Million Shares 38% of outstanding shares Average Price: $30.20 $40.07 Share Repurchase $3.1B: 77.4 Shares 1 2004 $35.76 $45.53 $1.1B: 31.1M Shares $36.88 2003 2002 $282M: 6.2M Shares $28.65 $706M: 19.2M Shares 2001 $24.61 $1.3B: 43.5M Shares 2000 Impact of Tender Offer $10 Billion 312 Million Shares Average Price: $32.13 $1.4B: 55.6M Shares $22.68 $1.4B: 55.6M Shares 1999 $33.59 $930M: 41M Shares $930M: 41M Shares 1998 $1.3B: 37.9M Shares $1.3B: 37.9M Shares 1997 2: Includes other activities affecting share balance (stock option exercises, restricted grants, and ESPP activity). 1: 2004 purchases through 12/31/04

  27. In Summary We Have…. Great Assets Excellent Investment Opportunities Strong Cash Flows Excellent Long-Term Earnings Growth Outlook Prudent Financial Strategy Focused on Shareholder Value

More Related