HCA Healthcare Boosts Annual Forecasts Thanks to Medicare Success | PRIMENEWSNOW

HCA Healthcare’s Financial Outlook Brightens Amid Rising Surgical Demand

On Friday, HCA Healthcare announced an upward revision of its annual profit and revenue projections, driven by a consistent demand for surgeries and robust performance in its Medicare segment. This news propelled its stock price by 4%, reaching $460.12.

Surge in Surgical Procedures Boosts Hospital Operators

Healthcare facilities are experiencing increased utilization rates, largely due to a steady demand for surgeries, especially among seniors who benefit from Medicare coverage.

Challenges with Affordable Care Act Plans

Despite the positive outlook, HCA expressed concerns over the future of Affordable Care Act (ACA) plans, commonly known as Obamacare. The COVID-19-related subsidies for these plans are set to expire in 2026, creating uncertainty.

The company is actively lobbying for the continuation of these tax credits, as their expiration could lead to reduced coverage, higher premiums, and decreased enrollment, potentially increasing uncompensated care costs for hospitals like HCA.

Looking Ahead: Financial Planning and Federal Policies

“We’re not ready to give you our financial plan for 2026 yet,” stated CEO Sam Hazen, emphasizing the need to understand upcoming federal policy changes before finalizing next year’s capital allocation.

Third Quarter Performance and Future Projections

HCA reported strong performance in the third quarter, outperforming previous years despite the usual summer slowdowns due to vacations and physician availability.

While Medicaid volumes for low-income individuals remained subdued, the strength in Medicare helped balance the scales.

The company now anticipates its 2025 adjusted earnings per share to range between $27 and $28, an increase from the earlier forecast of $25.50 to $27 per share.

Annual revenue is projected to be between $75 billion and $76.5 billion, slightly up from the previous estimate of $74 billion to $76 billion.

For the third quarter, HCA reported an adjusted profit of $6.96 per share, surpassing analysts’ expectations of $5.72 per share, according to LSEG data.