Summarize this content to 2000 words in 6 paragraphs HCA Healthcare—the largest for-profit health system in the United States—has reported year-over-year revenue growth for 2024 while acknowledging the devastating impacts of hurricanes Helene and Milton.In an anticipated earnings report released January 24, the Nashville, Tennessee-based hospital operator declared $70.6 billion in revenue for the year ending December 31, 2024.It’s an increase from the $64.97 billion revenue HCA reported in 2023. However, the health system recorded a lower net income in the fourth quarter of 2024 (approximately $1.44 billion) than during the same time period in 2023 (approximately $1.61 billion).HCA attributes this decline, in part, to losses on facility sales.
HCA Healthcare’s facility in Pearland, Texas, in 2022.
HCA Healthcare’s facility in Pearland, Texas, in 2022.
Getty Images
The report identifies a $195 million loss in the fourth quarter of 2024, “primarily related” to the pending sale of a California hospital. The sale in question was announced on January 13, when HCA reached a definitive agreement with Santa Clara County, California. Pending regulatory approval, the county will purchase the 258-bed Regional Medical Center from HCA for $150 million. The transaction is expected to close April 1, at which point the hospital will be integrated into the Santa Clara Valley Healthcare system.Signs of trouble emerged at Regional Medical Center in August 2024, when HCA downgraded the facility’s trauma, comprehensive stroke and certain cardiac services. The county intends to restore Level II trauma care immediately upon its acquisition, according to a January news release.HCA also ascribed an estimated $200 million in additional expenses and lost revenue to Hurricane Helene, which impacted certain facilities in North Carolina, and Hurricane Milton, which impacted certain facilities in Florida.On an October 25, 2024, earnings call, HCA CFO Mike Marks said that Helene hit 29 of the system’s hospitals and Milton affected 34. At the time, two hospitals—Mission Hospital in North Carolina and HCA Largo Hospital in Florida—were still recovering from floods after incurring infrastructure damage and hits to their water supply.Many hospitals also postponed procedures due to the storms and faced further revenue hits from the simultaneous IV fluid shortage.
Over the course of the year, HCA assumed operations of four more hospitals, gaining nearly 400 licensed beds across its footprint. The system spent $266 million acquiring hospitals and health care entities in 2024, per the report. It currently operates 190 hospitals and 124 freestanding outpatient surgery centers.”We finished 2024 with strong business fundamentals that were consistent with previous quarters,” said Sam Hazen, CEO of HCA Healthcare, in a January 24 news release.HCA is expecting growth in 2025, projecting revenue between $72.8 billion and $75.8 billion.Despite its challenges, the for-profit health care giant continues to report significant revenue compared to the average U.S. health system. According to a September flash report from consulting firm KaufmanHall, the median health system takes in $700 million in net patient revenue.Less than 8 percent of health systems reported a net patient revenue greater than $5 billion in 2022, according to the most recent data analyzed by KaufmanHall. Health system size was associated with greater revenues—those in the 25th percentile operate just one hospital while those above the 75th percentile operate at least six, according to the report.Hazen nodded to HCA’s growth in the January 24 news release, saying, “The first half of the current decade…proved to be another period of long-term growth for the company.”
