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.
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.