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Source: Wall Street Journal
Author: Jonathan D. Rockoff
Date: July 23, 2024
HCA Healthcare shares soared more than 5% Tuesday after the hospital chain reported even better than expected performance and raised its forecast for full-year performance above Wall Street's most optimistic projections.
Investors had expected HCA would do well, but the company performed even better. The Nashville-based company said demand for its services drove performance. HCA reported a net income of $1.46 billion or $5.53 per share, up from $1.19 billion or $4.29 per share. The hospital chain boosted its sales guidance to a range of $69.75 to $71.75 billion, up from $67.75 to $70.25 billion.
The company is a strong performer and among the nation's largest hospital chains.
The outperformance bodes well for hospital stocks generally. After struggling during the pandemic and then post-pandemic with nurses clamoring for higher wages, HCA has made progress controlling its labor costs, a significant factor in hospital margins. It appears hospitals have secured reimbursement gains from health insurers that have offset wage hikes.