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HCA Holdings Had Solid Inpatient and Outpatient Revenue Growth

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Solid revenue growth

In 4Q15, HCA Holdings earned ~$6.1 billion in revenue from inpatient admissions—a rise of 3.6% on a YoY (year-over-year) basis. The company also earned about $4.1 billion in revenue from outpatient admissions—a rise of 10.7% on a YoY basis.

In 4Q15, HCA Holdings earned 40.5% of its total revenue from outpatient admissions—higher than 39.6% in 4Q14. Other hospital companies including Community Health Systems (CYH), LifePoint Hospitals (LPNT), and Tenet Healthcare (THC) also focus on increasing the share of outpatient admissions. They’re more cost-effective. To learn more about the trends in hospital admissions, read Analyzing the important current trends in hospital admissions.

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Diversified growth

HCA Holdings managed to grow across all of its diversified facilities and service lines. The company witnessed a rise in same facility inpatient surgeries by 1.5% YoY from 130,900 cases in 4Q14 to 132,800 cases in 4Q15. For full-year 2015, same facility inpatient surgeries rose by 2.1% YoY and reached 524,200. The total number of patients admitted for surgery was 28.4% of the total admissions in 4Q15—a rise of 0.8% YoY.

In 4Q15, the total number of outpatient surgeries, performed either at HCA Holdings’s hospital-based surgery centers or at the company’s free-standing ambulatory centers, rose by 2.2% YoY and reached 234,100. In 4Q15, behavioral health admissions and rehabilitation admissions also displayed solid YoY growth of 7.9% and 8.4%, respectively.

You can invest in the iShares Russell 1000 ETF (IWB) to reduce excessive company-specific risks of investing directly in HCA Holdings. HCA Holdings accounts for about 0.12% of IWB’s total holdings.

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