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Source: Nashville Post
Author: Hannah Herner
Date: July 26, 2024
This week, three of Nashville’s publicly traded health care companies announced their second quarter results. HCA beat expectations and raised its guidance, while HealthStream fell short and Amedisys remained steady, though mum, during its slated acquisition.
HCA Healthcare
Nashville-based hospital giant HCA Healthcare reported revenues of $17.492 billion and a net income of $1.461 billion during the second quarter of 2024. Revenues and net income increased year over year, with the company charting $15.861 billion in revenues and $1.193 billion in net income attributable to the HCA in the second quarter of 2023.
HCA made $12 million through selling locations, and the company spent $1.281 billion in capital expenditures, excluding acquisitions, according to a press release. HCA operates 188 hospitals and approximately 2,400 ambulatory sites of care in 20 states and the United Kingdom.
As part of the second quarter results, the company increased its guidance for the year, from a net income of between $5.2 billion and $5.6 billion to between $5.675 billion and $5.975 billion. Company executives chalked up the growth to an increase in inpatient surgeries and admissions.
HCA’s stock (ticker: HCA) surged following the company’s release on Tuesday morning, jumping from $325.59 to $342.23 per share. Shares were valued at $352.79 at close of business Thursday, a 2.57 percent increase.
“The company’s results for the second quarter were positive and reflected strong demand for our services,” said Sam Hazen, CEO of HCA Healthcare. “Our teams continued to execute our strategic plan effectively and produce positive outcomes for our patients. I want to thank our HCA colleagues for their outstanding work and their continued pursuits to innovate and deliver on our mission.”
During the second quarter of 2024, TriStar Health, the local brand of HCA Healthcare hospitals, announced plans to build a $250 million hospital in Spring Hill.
HealthStream
Another Frist family-owned company, HealthStream, saw its value drop following its second quarter earnings announcement. The Nashville-based health care training platform company saw its net income and revenue growth year over year, but fell short of analyst expectations overall.
The company charted a net income of $4.2 million in the second quarter of 2024, up from $4.1 million in the second quarter of 2023. Revenues hit $71.6 million in the second quarter of 2024 compared to $69.2 million in the third quarter of 2023.
Operating income also increased, which the company attributes to an increase in capitalized labor associated with software development activities, according to a press release. One of HealthStream’s customers also filed for bankruptcy, which negatively impacted operating income by $1.0 million and net income by $0.8 million, according to a press release.
“Second quarter 2024 revenues, operating income, and adjusted EBITDA all showed year-over-year growth, which was achieved amidst a couple of unique, one-time customer events presenting headwinds in the quarter,” said Robert A. Frist, Jr., CEO of HealthStream. “With strong sales at the end of the second quarter and a solid sales pipeline, our confidence is reinforced in finishing the year with sequential growth and within our guidance range.”
Shares of HealthStream (ticker: HSTM) have been on a steady decline this week. They closed Thursday at $28.77 per share, down 5.58 percent that day.
Amedisys
Home health company Amedisys, based in both Louisiana and Nashville, did not host a second quarter earnings call because of a pending merger with UnitedHealth Group’s subsidiary, Optum.
Amedisys had agreed to be acquired by Option Care Health in 2023, but UnitedHealth Group swooped in to purchase the company in a deal set to finalize this year. In the second quarter of 2023, the Amedisys was still experiencing expenses of the merger, which added up to a net loss of $80.3 million. In the second quarter of 2024, Amedisys saw a net income of $32.3 million.
The company also saw an increase of $38.2 million year-over-year for net service revenue, bringing in $591.2 million in the second quarter of 2024. The company attributes gains to an increase in palliative care, and in the number of patients served overall.
Amedisys shares (ticker: AMED) dropped slightly following the earnings release but recovered by the close of the market Thursday, with a value of $97.75 per share.