HCA Holdings, Inc. (HCA)

HCA 
$69.18
*  
0.73
1.07%
Get HCA Alerts
*Delayed - data as of Aug. 22, 2014 13:51 ET  -  Find a broker to begin trading HCA now
Exchange: NYSE
Industry: Health Care
Community Rating:
View:    HCA Real Time
 
 
Symbol List Views
FlashQuotes InfoQuotes
Stock Details
Summary Quote Real-Time Quote After Hours Quote Pre-market Quote Historical Quote Option Chain
CHARTS
Basic Chart Interactive Chart
COMPANY NEWS
Company Headlines Press Releases Market Stream
STOCK ANALYSIS
Analyst Research Guru Analysis Stock Report Competitors Stock Consultant Stock Comparison
FUNDAMENTALS
Call Transcripts Annual Report Income Statement Revenue/EPS SEC Filings Short Interest Dividend History
HOLDINGS
Ownership Summary Institutional Holdings Insiders
(SEC Form 4)
 Save stocks for next time

HCA Holdings, Inc. (HCA)

February 26, 2013 11:05 am ET

Executives

Samuel N. Hazen - President of Operations

R. Milton Johnson - President, Chief Financial Officer, Principal Accounting Officer and Director

Victor L. Campbell - Senior Vice President

Analysts

Gary P. Taylor - Citigroup Inc, Research Division

Presentation

Gary P. Taylor - Citigroup Inc, Research Division

Good morning. Thanks for coming in to check in with HCA. HCA is the nation's largest hospital company. It has 163 hospitals, over 100 ambulatory surgery centers. They're in 20 states, as well as England. And what's interesting, I was kind of thinking about how to describe HCA. If you look at the parts of HCA, you've got the largest hospital company in the country; also, by itself, one of the largest BPOs in the country; one of the largest physician practice management companies; one of the largest revenue cycle companies; and one of the largest surgery center companies. All combined just being what it is in supporting all the markets.

So a pretty broad cut of the industry is being represented up here today. So we have Milton Johnson, who's the CFO; Sam Hazen, who's the COO; and Vic Campbell, who's Head of Government Relations or primarily works in government. Right?

Samuel N. Hazen

And Milton is President too.

Gary P. Taylor - Citigroup Inc, Research Division

Oh, President and CFO. Sorry.

Samuel N. Hazen

No big deal.

Question-and-Answer Session

Gary P. Taylor - Citigroup Inc, Research Division

So first question I just want to go is big picture. I mean, the theme of our conference is the value imperative. And I guess, at this point, I'd say, ad nauseam, we've heard a lot transitioning away from fee-for-service or it's that really in the health care industry over the next 5 to 10 years, less being paid per volume, more being paid for value that's being delivered to private, the public payers. So first question is do you agree with that thesis? How quickly do you think that's moving and what does HCA need to do differently than it's doing today if anything?

R. Milton Johnson

Maybe I'll take a shot at the first part of that and Sam might have some comments to add. In our market, we're not seeing a widespread movement to a different revenue model than our fee-for-service model. Yes, you do have with Medicare now you have certain penalties, pay-for-performance, readmission and the like. But still, that's a relatively small piece at risk for us. Of course, our performance there is very strong, but it's not a significant piece of our revenue at risk with that. And so we're still seeing structurally, our reimbursement consistent with the recent past. I don't see that changing in a significant way for HCA in the intermediate term looking out over the next 2, 3, 4 years. We may see some of it develop over time. But again, I still believe it will be a largely fee-for-service reimbursement model for HCA.

Samuel N. Hazen

Just to add to Milton's comments, Gary. I think it's important to understand what we're trying to [indiscernible] HCA is unique with its scale across the multi-market, multistate environment. But within the marketplace, one of the things we're trying to do is create what I call local scale. And within that local scale, really having a network that has the full complement of service capability. Thus, you could see that we've been adding services to our array, whether it's behavioral rehab, trauma programs, children's programs and so forth. And then additionally, making sure we have enough access in these large markets where we do business to provide for easy accessibility to our HCA system and hopefully being able to keep the patients internally within our network of facilities. And as we think about changes in the marketplace, having, for lack of a better term, a must-have network position is important in today's market, but I think it's going to be even more important in tomorrow's market. And so from that standpoint, that's the core element of what we're trying to get done today. Additionally, I would say in preparation for tomorrow, we're continually advancing our quality performance with quality initiatives across the company to enhance our metrics down at that line, as well as improving our overall patient satisfaction in a very significant way. And all of those are just basic elements of building a network that is competitive in the marketplace and capable of adjusting to whatever dynamics come down the road.

Gary P. Taylor - Citigroup Inc, Research Division

Can you talk a little bit about how you've approached participating in ACOs and bundled theme and some of these demonstration projects and how much of that are you doing? How important you think that is at this early stage of the game?

R. Milton Johnson

Well, with respect to governmental ACO program, we have chosen not to participate. We did look at the programs and decided that, for us, it did not make sense for us currently. But ACO is a pretty broad term. I think people use it to describe a lot of different models. And what Sam just described, the ability of taking care of a patient is the continuum of care. Certainly, that's something that we are focused on. It's just not under the governmental ACO definition. We do have models on the smaller scale that we have with different payers where we may have a gain-sharing opportunity; again, where we may be in a position that if we can change certain cost parameters, cost structures, that we can participate in the first couple of years with the upside, with the gain-sharing programs and with the idea of down the road, if we're successful in doing that, could we convert that into more of a risk bearing sort of arrangement. But again, these are all, right now, on a very small scale for HCA and not material to our operating results. But again, we're getting that experience and learning how to operate in that environment.

Read the rest of this transcript for free on seekingalpha.com