HCA Healthcare Inc
Latest HCA Healthcare Inc News and Updates
Must-know: Why did Omega Advisors exit its Wells Fargo position?
Omega Advisors Inc. is a New York–based investment advisory firm founded in 1991 by Leon G. Cooperman. Omega sold a 1.05% position in Wells Fargo.
Clear Channel International: The Only Junk Bond Issuer in the Week Ending December 11
An indirect and wholly owned subsidiary of Clear Channel Outdoor Holdings, Clear Channel International issued $225 million in dollar-denominated junk bonds.
Assessing the economy’s impact on national healthcare spending
National healthcare spending is a major driver of the hospital industry. National spending on hospital care is expected to amount to $973 million.
Universal Health Services’ Behavioral Health Business in 3Q15
Universal Health Services (UHS) is expected to benefit from its leading market position in the behavioral health business in 3Q15.
BlackRock Shares Its Views on Fixed-Income Strategy for 2016
BlackRock is not upbeat about fixed income in 2016. It’s more optimistic about stocks than it is about bonds, specifically European and Japanese equities.
Danaher Corporation’s Excess Returns Fail to Impress
Earlier in this series, we looked at Danaher’s return on invested capital on a standalone basis. However, we were only looking at half the story.
Leveraged Loan Funds Witness Back-to-Back Inflows
According to data from Lipper, leveraged loan funds saw an inflow for the second consecutive week. The quantum of inflows came in at $176 million last week.
Which Hospital Stocks Are Expected to Benefit Most?
Trumpcare’s failure is considered to be a boon by hospital companies treating a significant portion of Medicaid members.
DaVita HealthCare Partners is New Stake in Lone Pine’s Portfolio
DaVita posted 4Q14 net earnings of $208 million, or $0.96 per share, compared with $212.3 million, or $0.99 per share, last year.
What do falling oil prices mean for the hospital industry?
Economic conditions like falling oil prices affect the healthcare industry with a lag. This makes the hospital industry a good investment option.
Did Leveraged Loan Funds Break a 32-Week Streak of Outflows?
Leveraged loan funds saw inflows in the week ending March 9 after 32 consecutive weeks of outflows. However, the amount of inflows was small at $55.0 million last week.
What Is the Reason for LifePoint’s High Salary and Wage Expenses?
During 4Q15, salaries and benefits for LifePoint Health (LPNT) amounted to $652.7 million, up 6.6% in comparison with the same quarter of the previous year.
Must-read: Is the US hospital industry truly non-cyclical?
The hospital sector is widely considered a non-cyclical or defensive industry, meaning demand for hospital services doesn’t change with the economic cycle.
Universal Health Services’ Net Profit Margin Expected to Rise
Wall Street analysts expect that Universal Health Services (UHS) will report higher net profit margins in 3Q15 compared to margins in 3Q14.
Why is the high yield bond market seeing so much fresh supply?
Strong weeks of issuance signify an overall bullish market. High yield issuance for last week was at its strongest so far in 2014.
Why Did High-Yield Bond Issuers Avoid the Primary Market?
High-yield bond issuance fell to zero last week due to two main reasons. Junk bond issuers stayed away from the primary market due to fears of default risk.
How Does UHS’s Valuation Compare to Other Hospital Companies?
On February 26, 2016, Universal Health Services (UHS) was trading at a forward PE (price-to-earnings) multiple of about 13.8x.
Exploring payer mix trends at HCA Holdings
In terms of payer mix, the percentage of HCA Holdings revenues contributed by Medicare rose from 28.0% in 3Q13 to 30.3% in 3Q14.
Analysts Expect UHS’s 2016 Net Profit Margins to Rise Marginally
Wall Street analysts have projected that Universal Health Services’ net profit margin will increase marginally from 7.5% in 2015 to 7.6% in 2016.
What the Advisory Board’s Health Business Expects from Technology Sales
In 1Q17, the Advisory Board earned a major part of its healthcare business revenues from consultancy services, but it expects to see higher demand for health tech.
Why did Omega Advisors buy a share in Realogy Holdings?
Omega Advisors Inc. is a New York–based investment advisory firm founded in 1991 by Leon G. Cooperman. Omega bought a 1.04% position in real estate brokerage operator Realogy Holdings Corp. in 3Q 2013.
What Are Analysts’ Recommendations for HCA Holdings?
HCA Holdings released its 4Q15 and fiscal 2015 earnings results on January 28, 2016. In Bloomberg’s survey, 68.0% of the analysts rated HCA Holdings a “buy.”
The health insurance marketplace affects the hospital industry
These exchanges—also called “health insurance marketplaces”—sell federally regulated, subsidized health insurance to individuals and small businesses.
Who pays hospital bills? Analyzing hospitals’ payer mix
Government programs Government programs like Medicare and Medicaid, combined with other health insurance plans such as the Children’s Health Insurance Program (or CHIP), Department of Defense, and Department of Veterans Affairs programs, comprise about 51% of the total payments for hospital care. There are also other third-party payers, like worksite healthcare, the Indian Health Service, […]
Overview: Assessing hospital companies’ capital expenditures
Capital projects in the hospital sector include purchasing new facilities, purchasing medical equipment, renovating and replacing existing hospitals, and investing in information systems infrastructure.
Why location and services affect hospitals’ competition and margins
During the 1990s, the hospital industry underwent about 900 consolidation deals. These led to the formation of local markets, with limited hospital systems dominating cities like Boston, Pittsburgh, and Philadelphia.
Understanding hospitals’ size, technology, and operating expenses
In the capital-intensive hospital industry, economies of scale offer a competitive advantage by spreading out the high fixed costs, providing for higher margins.
Why healthcare investors should consider teaching hospitals
An overview of teaching hospitals can help you predict future trends in hospital industry workforce management and, finally, the companies’ overall expenses.
Must-know: Why invest your money in fixed income ETFs?
Fixed income as an asset class encompasses a variety of securities, including bills, notes, and bonds, syndicated loans, and structured products.
Why are investors less and less attracted to bonds?
As improved economic conditions result in increased interest rates, bonds as an asset class lose their attraction. (Improved economic conditions simply mean the country as a whole is better off.)
Why high yield fund flows stayed positive 6 weeks in a row
High yield bond flows last week posted the straight sixth week of positive inflows, though the pace was lower than the previous week.
Why the demand in the high yield bond market rebounded last week
The high yield bond funds flow turned positive last week after a relatively small outflow the previous week, which broke the line of seven straight weeks of inflows.
Understanding hospitals’ bad debt expenses and profitability
According to the American Hospital Association (the AHA), uncompensated care costs in 2013 amounted to about $49 billion. Bad debt expenses closely relate to unemployment levels and the total number of uninsured people.
What Analysts Are Recommending for These Three Hospital Stocks
After a relatively lackluster performance in 2017, the three major for-profit hospital stocks in the US have seen a rapid rise in 2018.
How Ramsay Health Care Became a Cost Leader
Ramsay Health Care is a market leader in private healthcare in Australia, treating almost 3 million patients each year.
Hospital Industry Reacts to the Failed Healthcare Bill
On March 24, 2017, House Speaker Paul Ryan pulled back the American Health Care Act, also known as “Trumpcare,” before votes were cast.
How Could Trump’s Presidency Affect Hospitals and Insurance?
The effects of repealing Obamacare Donald Trump is definitely not in favor of the Affordable Care Act, known as Obamacare. As he wants to repeal the act completely and replace it with another policy, the hospital sector fell on November 9, the day after the election. Trump believes that providing healthcare facilities to illegal immigrants costs […]
What’s Hampered UNCGX in 2016?
The consumer discretionary sector has been the primary drag on the UNCGX in YTD 2016.
What’s the Sector Composition of the Ivy Global Growth Fund?
The Ivy Global Growth Fund is not like most funds in this review because of its inclination towards US stocks.
Leveraged Loan Funds Had Small Inflows Last Week
In the week ended August 3, 2016, leveraged loan funds saw inflows worth $60.4 million. In the previous week, leveraged loan funds had outflows of $15 million.
Why Leveraged Loans Issuance Skyrocketed Last Week
According to S&P Capital IQ/LCD, US leveraged loans saw an allocation of $18.4 billion worth of dollar-denominated senior loans in the week ended August 5, 2016.
The Ivy Global Growth Fund’s Portfolio Moves in YTD 2016
The Ivy Global Growth Fund (IVINX) is not like most funds in this review. This is due to its inclination toward US stocks.
What Is the Ivy Global Growth Fund’s Strategy?
The Ivy Global Growth Fund – Class A (IVINX) was incepted in April 1986 and has an expense ratio of 1.5%.
Could Growth in Acute Care Revenues Pressurize UHS’s Valuations?
Universal Health Services’ acute care revenues rose by 10.9%, from approximately $4.2 billion in 2014 to $4.6 billion, in 2015.
DaVita’s Stock Reacts to the Merger with The Everett Clinic
DaVita HealthCare Partners (DVA) was one of the biggest winners for the week ending March 4 with a return of 6.1%.
Changes in Behavioral Health Business May Boost UHS’s Valuations
Universal Health Services’ behavioral health revenues rose by 9.7%, from $4 billion in 2014 to $4.4 billion in 2015.
How Has LifePoint Performed on a Same-Facility Basis?
Same-facility admissions for LifePoint (LPNT) fell by 4.2% to 55,000 during 4Q15. During 4Q15, its equivalent admissions fell by 1.1% to 146,000.
What Key Factors Drive Revenue for LifePoint?
What drives LifePoint’s revenue? Major revenue drivers for LifePoint Health (LPNT) include: Equivalent admissions Medicare case mix index Average length of stay Inpatient and outpatient surgeries Emergency room visits Outpatient factor To learn more about the company’s organic growth strategy, please refer to Organic growth strategy at LifePoint Hospitals. Admissions on a consolidated basis LifePoint’s consolidated […]
HCA Holdings’s Strong Capital Expenditure Strategy for 2016
In 2015, HCA Holdings deployed ~$2.4 billion in capital expenditure. It planned to increase capital spending to $2.7 billion in 2016.
HCA Holdings’s Operating Expense Ratio Fell in 4Q15
In 4Q15, HCA Holdings spent about $8.1 billion on salaries, supplies, and other operating expenses combined—an increase of 5.3% from $7.7 billion spent in 4Q14.
High-Yield Bond Fund Flows in 2015: Not a Pretty Picture
High-yield bond funds have become out of favor with investors. Recently, the ICI released weekly data on estimated fund flows for high-yield bonds funds.
Universal Health Services Explores Growth Opportunities in 3Q15
In 3Q15, Universal Health Services was actively involved in exploring growth opportunities, both in its acute care as well as behavioral health business.
Rise in Revenues Is Expected for Universal Health Services
According to Wall Street, Universal Health Services’ 3Q15 revenues are estimated to be about $2.2 billion—growth of about 9.5% on a YoY basis.
Widening High-Yield Bond Spreads: Opportunity or Threat?
Investors should note that high-yield bonds are risky securities to begin with. The add-on risk of widening spreads may not suit all types of investors.
Universal Health Services’ Behavioral Health Segment Is Strong
Universal Health Services’ behavioral health segment registered 14% growth in total revenue—from $946 million in 1Q14 to $1,076.3 million in 1Q15.
LifePoint Hospitals: An ambitious acquisition strategy
LifePoint Hospitals’ ambitious acquisition strategy is to buy hospitals in states that are adopting or are thought to be adopting Medicaid expansion.
Organic growth strategy at LifePoint Hospitals
LifePoint Hospitals (LPNT) has adopted a four-pronged organic growth strategy to boost its revenues, a key element of which is physician recruitment.
LifePoint Hospitals’ geographic strategy
LifePoint Hospitals’ geographic strategy is to provide medical and surgical services in mainly non-urban markets.
Hedge funds among top owners of LifePoint Hospitals
The major hedge funds project that the Affordable Care Act will benefit LifePoint Hospitals and increase the company’s revenues.
An overview of LifePoint Hospitals
With 67 hospitals, acquisitions continue to strengthen its position in rural markets, especially where LifePoint Hospitals is the sole healthcare provider.
Universal Health Services is expanding into the UK market
Universal Health Services entered the UK market by acquiring Cygnet Healthcare, a leading behavioral health provider, in an all-cash deal of $335.0 million.
A closer look at Universal Health Services’ acquisition activity
Since 2011, the healthcare industry has seen a surge in mergers and acquisitions (M&A) activity, especially in the outpatient medical market.
Universal Health Services’ payer mix differs from other companies’
Universal Health Services (UHS) has displayed a trend in payer mix from 2011 to 2013 that differs from other companies in the healthcare industry (XLV).
Assessing Universal Health Services’ revenue mix and admissions
Same-facility inpatient admissions and equivalent admissions in the behavioral health services segment increased by 3.2% and 3.5% from 2012 to 2013.
Exploring Universal Health Services’ revenue streams
Universal Health Services’ (UHS) net revenues increased by 4.6% from $6.96 billion in 2012 to $7.28 billion in 2013.
Exploring Universal Health Services’ major markets
Universal Health Services (UHS) earns more than 50% of its total revenues from the Texas, Nevada, Florida, California, and District of Columbia markets.
Unraveling the history of Universal Health Services
Universal Health Services (UHS) has consistently provided good returns. Its performance surpassed that of the Health Care Select Sector SPDR ETF (XLV).
How will the Cadillac tax affect the hospital industry?
The implementation of this tax, called the Cadillac tax, will take effect beginning 2018. Post-2018, the threshold will be indexed to general inflation
HCA Holdings outpatient services see revenue growth
HCA Holdings earned 38% of its total revenue from outpatient services in 3Q14. The company also announced the acquisition of CareNow.
Why Medicaid expansion leads to better hospital performance
According to the ACA, Medicaid expansion programs involve states changing the eligibility limits of Medicaid coverage to include population up to 138% of the federal poverty line.
Analyzing the important current trends in hospital admissions
Hospital admissions are classified in two categories, inpatient admissions and outpatient admissions. Patients who are admitted overnight are inpatients.
Why changes in interest rates affect the hospital industry
Economic changes in interest rates affect hospital companies, depending on the company’s cost-structure and expansion strategies.
Gauging inflation’s effects on the hospital industry
Inflation closely relates to the performance of the healthcare industry (XLV), as it affects the rates that hospitals charge and the costs of medical care.
Why the unemployment rate affects hospital performance
The healthcare industry, represented by the Healthcare Select Sector SPDR, is affected by the unemployment rate. Income affects people’s health choices.
Exploring HCA’s debt numbers
Despite having negative equity, HCA Holdings is backed by strong operational performance and debt-to-EBITDA figures, which are among the lowest in the industry.
HCA’s physician recruitment and labor management
HCA Holdings uses advanced staffing solutions such as creating a centralized float pool of nurses instead of directly hiring nurses for different facilities.
HCA’s information technology initiatives
HITECH specifies certain criteria that must be satisfied to qualify as a “meaningful use” of electronic health record technology.
Standalone urgent care strategies
HCA Holdings is capturing market share in the $15 billion urgent care clinic market field by focusing on acquiring or opening standalone urgent care clinics.
Exploring HCA Holdings’ operating expenses
With solutions such as flexible staffing and optimal group purchasing provided by Parallon, HCA Holdings has better operating margins as compared to its peers.
HCA’s diversification strategy
HCA Holdings’ diversified suite of services enables it to retain patients at their facilities, which bolsters revenues per patient.
Exploring HCA’s ownership structure
Passive investments account for more than 56% of HCA Holdings’ total ownership structure.
An overview of HCA Holdings
HCA Holdings went private in 1988 through a leveraged buyout, but it again became a public company in 1992.
Community Health Systems: Market share growth strategies
The company acquires hospitals to create regional networks, especially in states where more of the population is uninsured. By positioning itself to be the network provider in under-penetrated markets, the company can earn higher revenues.
The benefits of Community Health Systems’ acquisition strategy
Community Health Systems acquires two to four hospitals each year as a part of its growth strategy. Reducing duplicate functions at the corporate level reduces overhead salary costs.
Managed care and 3rd parties dominate for-profit hospital payer mix
Sources of revenue For-profit hospitals like HCA Holdings (HCA), Tenet Healthcare (THC), Universal Health Services (UHS), and Community Health Systems (CYH) receive payments from federal Medicare, state Medicaid, or similar programs, managed care, third-party payers, and directly from patients. You can reduce your dependence on payment variations from different payers by investing in the Healthcare Select Sector […]
Healthcare reform’s impact on Community Health Systems
The Patient Protection and Affordable Care Act (or ACA) and Health Care and Education Affordability Reconciliation Act are together called “Reform Legislation.”
An update for high yield bondholders: Why the market fell last week
The high yield bond market activity declined dramatically last week with issuance reaching $5.8 billion.
Fixed income ETFs: Long or short duration and quality versus yield
This article considers the difference between high credit quality and low credit quality, as well as mid-duration versus long-duration fixed income ETFs.
Check your fixed income ETF duration before it’s too late
This series takes a quick look at past and present economic growth data, government spending, interest rates, and inflation, and considers the outlook for ETF-focused fixed income investors.
Knowing high yield bond ETFs and leveraged loan ETFs
Let’s see how high yield bond ETFs and leveraged loan ETFs compare in the current rising interest rate environment.
Why did Omega Advisors start a position in HCA Holdings?
Omega Advisors Inc. is a New York–based investment advisory firm founded in 1991 by Leon G. Cooperman. Omega acquired a 1.24% position in HCA Holdings in 3Q 2013.