1 / 22

Vic Campbell Senior Vice President Mark Kimbrough Vice President, Investor Relations

Vic Campbell Senior Vice President Mark Kimbrough Vice President, Investor Relations Bryan Rogers President, Midwest Division Clifton Mills CFO, Midwest Division. Cautionary Note Regarding Forward-looking Statements.

lamar-ferrell
Télécharger la présentation

Vic Campbell Senior Vice President Mark Kimbrough Vice President, Investor Relations

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. Vic Campbell Senior Vice President Mark Kimbrough Vice President, Investor Relations Bryan Rogers President, Midwest Division Clifton Mills CFO, Midwest 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. 187 Hospitals 94 Surgery Centers • Generally 25%-40% Market Share • 40% of facilities in Texas & Florida HCA Hospitals Locatedin Growth Markets Kansas City +5% Denver +9% U.K. Las Vegas +22% Switzerland Richmond +8% Dallas/Ft. Worth +12% Nashville +8% Southern California +9% Panhandle +10% Palm Beach +11% Houston +10% Dade +8% Percent Growth in Market Population 2000-2005 Compared to the National Average of 4.5% Tampa Bay +8% Austin +18%

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

  5. HCA Capital Expenditures Billions 2002 $1.7 2003 $1.8 2004 $1.5 2005E $1.6 2000 $1.2 2001 $1.4 $2.0` $1.5 $1.0 $0.5 New Denver Facility $0.0 Outpatient Services/MOBs 11%/$480M Replacement Facilities 10%/$420M 2000 2001 2002 2003 2004 2005E New and Expanded Services 16%/$690M Note: Does not include potential new and replacement facilities. Land & Improvements 12%/$505M ER Services 8%/$325 Infrastructure Develop., IT&S, & Pat. Safety Midwest Division 3 Facilities 511 Beds Shared Services Three Facilities 511 Beds 33 ER Expansions Open Heart, Cardiology Oncology, etc. 33 ER Expansions New & Replacement Facilities Open Heart, Cardiology Oncology, etc. Facility Expansion Projects RoutineCapital 56 Facilities with Surgery and/or ICU/CCU expansions 1611 New Beds Three New Facilities 310 Beds Three New Facilities-310 Beds Distribution of Capital Dollars 2005 and Beyond 1,611 New Beds Surgery/Special Units 21%/$875M New Facilities 8%/$340M Beds 14%/$590M

  6. Volume 1999 2000 2001 2002 2003 2004 2005 +2.7% +2.8% +2.7% +0.7% +2.5% +0.6% Admissions Same Facility % Change from PY +1.3% +2.6% +0.0% +2.5% +2.6% +2.6% Equivalent Admissions Same Facility % Change from PY

  7. Volume 1999 2000 2001 2002 2003 2004 2005 +2.4% -1.9% +1.1% +0.8% +0.5% +1.7% +0.7% Sep YTD Total Surgeries Same Facility % Change from PY +0.8% Sep YTD +1.4% +2.2% -3.0% +0.4% -0.8% -1.2% Outpatient Surgeries Same Facility % Change from PY +0.7% Sep YTD +2.2% +2.8% -0.2% +2.2% +3.5% +3.6% Inpatient Surgeries Same Facility % Change from PY

  8. Operating Expenses 1999 2000 2001 2002 2003 2004 2005 39.2% Sep YTD 38.4% 39.2% 38.5% 39.3% 39.0% 39.4% SW&B1 Same Facility % of Net Revenue 17.0% Sep YTD 16.1% 16.2% 16.7% 16.0% 15.9% 16.0% Supplies Same Facility % of Net Revenue 9.6% Sep YTD 11.4% 7.6% 8.0% 10.1% 7.5% 7.7% Bad Debt As Reported % of Net Revenue 12.2%

  9. Uninsured HCA Financial History – 2005.ppt 2000 2001 2002 2003 2004 2005 +5.0% Sep YTD Uninsured Admissions Same Facility % of Total Admissions N/A +7.7% Sep YTD 2004: +9.7% 15.0% vs. PY 13.7% vs. PY Uninsured Admissions Same Facility % Chg from Prior Year 2.4% vs. PY 11.5% vs. PY 7.1% vs. PY 5.1% vs. PY 7.2% vs. PY 7.5% vs. PY 15.2% vs. PY 3.7% vs. PY 3.3% vs. PY +20.2% Sep YTD Uninsured ER Visits Same Facility % of Total ER Visits N/A

  10. Net Cash Provided by Operating Activities1 Dollars in Millions Uses of Cash Cash flow in 2005 Remains Positive (1) Capital Reinvestment $1.5B in 2004 in existing assets (2) Share Repurchase Program $10.0B in 8 years $2.5B “Dutch Auction” underway (3) Dividend Policy $250mm annually (4) Acquisitions – opportunistic $1B Health Midwest - April 2003 2 (5) Debt Repayment % Debt to Cap at September 30 Excluding settlements with government agencies and investigation related costs. 1: 1999-2003 are non-GAAP numbers 2: YTD 2005- 9/30/05

  11. In Summary We Have…. Great Assets Strong Cash Flows Prudent Financial Strategy Focused on Shareholder Value

  12. Bryan Rogers, President Midwest Division

  13. Midwest Division Hospitals The “Big Six” Hospitals: Research Medical Center Baptist-Lutheran Medical Center Overland Park Regional Medical Center Menorah Medical Center Independence Regional Health Center Medical Center of Independence Suburban /Rural/Specialty Hospitals: Allen County Hospital Lafayette Regional Health Center Lee’s Summit Hospital Research Belton Hospital Research Psychiatric Center

  14. Kansas City Profile • 26+ Full Service Acute Hospitals • 6,507 Licensed / 5,254 Staffed Beds • 3,343 ADC • 64% Occupancy (staffed) • 1.87M Residents in MSA - 2004 • 5.9% Population Growth 2004-09 Kansas City Marketplace • CON • Provider owned MCOs / dueling systems • Available bed capacity • Irrational capital spending by stand alone single hospital franchises • Low commodity pricing • PRO • No dominant system • High “use rate” for service utilization • Lack of inpatient “niche” traction • Missouri: Certificate of Need state • Low % of uninsured population

  15. 11 County Service Area 2004 Kansas City Market Share

  16. Characteristics of Health Midwest System Developed through Acquisition (13) Poor Management Control Systems Centralized Decision Making Declining Market Share Lack of Leadership Attempted Vertical Integration Low Employee Morale Lack of Capital Spending

  17. Key Accomplishments - Growth • Recruited 54 New Physicians to Market • Managed Care Pricing: 9% 2004; 9% 2005 • ASC Development Projects Approved(Independence, MMC, OPRMC) • New Service Development • Pancreas / Transplant Services (RMC) • Gyn Oncology (OPRMC / RMC) • Trauma (OPRMC/Independence) • Open Heart Services (OPRMC / BLMC) • Cyberknife JV (MMC) • Chest Pain Accreditation • The Cancer Institute Unwind (Health Midwest/St. Luke’s Oncology JV) • CON Approval: Independence & Lee’s Summit Growth 2003-2005 62%- MRI 38% - CT • Imaging

  18. Labor Reductions • Closed Unprofitable Services (Skilled Nursing, Rehabilitation Units) • “Shed” Non-core Businesses (EHS, Trinity Manor, Fitness Center) • Built Flexible Workforce (implemented “All About Staffing”) • Case Management: Avoidable Day Reduction • Supply Chain Warehouse • PAS Implementation Key Accomplishments – Cost /Efficiency

  19. Capital Investment • Major Capital Initiatives: • $281 Million – New Independence Hospital ($196M) & New Lee’s Summit Hospital ($85M) • $92 Million – Research Medical Center (ER, Patient Rooms, Cancer, Imaging) • $25 Million – Overland Park Regional Health Center (Women’s Services & ICU) • $15 Million – Outpatient Strategy Development (ASC, JVs, etc.) • $32 Million – Financial & Clinical Information System • $16 Million – Imaging Investment

  20. Lee’s Summit Independence New Replacement Hospitals • Site Summary: • 89 acres purchased for $15M • Bed Profile Proposed: • Medical / Surgical 156 • Intensive Care Unit 28 • NICU (Level II & III) 12 • GYN/Antepartum 9 • Post Partum 16 • TOTAL 221 • Site Summary: • 39 acres purchased for $8M • Bed Profile Proposed: • Medical / Surgical 48 • Intensive Care Unit 10 • Women’s Services 6 • TOTAL 64 • ER Bays 14 treatment bays • Surgical OR 4 • PACU 8 positions • Prep & Recovery 12 positions • ER Bays 32 treatment bays • Surgical OR 10 • PACU 15 positions • Prep & Recovery 30 positions

  21. Stabilized Run Rate Admissions

  22. Long Run Strategy #1: Growth: Increase Market Share in High Margin Services #2: Execute Capital Investment Strategy #3: Upgrade Quality / Satisfaction #4: HCA Goodwill / Communication Efforts #5: Execute Revenue Plan to Address Provider Reimbursement #6:Bed Consolidation #7:Shared Service Initiatives / Continued Reduction in Fixed Costs #8:Geographical Expansion into New Markets

More Related