Caring through COVID-19

September 17, 2020

Dear HCA Healthcare Colleagues,

We are now into the sixth month of this global pandemic, and, to date, HCA Healthcare has cared for almost 60,000 COVID-19 inpatients, significantly more than any other health system in the country. Throughout this event, we have proven -- you have proven -- that our organization, more so than many in our industry, has unique enterprise skills, capabilities, and heart, all of which allow us to respond effectively and responsibly to events like this one, and at the same time improve our organization. For that, I want to thank you, and I also want to thank you again for your unwavering dedication and commitment to our patients and to each other.

Early in the pandemic, we made the decision not to lay off or furlough any full-time or part-time colleague. I am proud that we were able to keep that promise. Nevertheless, when our elective procedures were stopped in March/April, our volumes and revenues fell to unprecedented lows. To preserve our ability to continue to fulfill our mission to care for patients, we reduced discretionary spending; suspended annual merit increases; implemented temporary salary cuts for corporate and division teams; and announced a reduction in 401(k) contributions to employees who are represented by unions and whose union would not agree to suspend annual wage increases. We also decreased capital expenditures, suspended dividends, and stopped share buybacks.

Everyone affiliated with HCA Healthcare sacrificed at some level in order to support our colleagues across the organization. That includes the members of our board of directors, who waived a significant part of their compensation. These sacrifices enabled us to continue to serve our patients and communities during the most uncertain period any of us have ever experienced.

As I promised in my last letter to you, we have reviewed some of the compensation decisions that we made in the midst of the pandemic. And now, with more experience managing through this crisis, and because of the superior work by all, we will be making certain adjustments to those decisions.

In recognition of your outstanding service and shared sacrifice during these challenging times, we will take the following actions in November:

• Implement merit increases for active colleagues who did not receive them earlier this year;
• Provide a one-time bonus to all full-time and part-time facility-based colleagues;
• Provide a bonus to active full-time and part-time corporate and division colleagues who received a pay reduction, equal to 50% of that reduction. Senior officers are not eligible for this bonus; and
• While the above actions do not apply to union represented colleagues, who are subject to the collective bargaining process, we will not implement the planned reduction in the company’s 401(k) matching contribution for them.

We are fortunate that we work for a company that has great people, unmatched scale, incredible resilience, and a culture of doing the right thing for others. You have earned this. I am proud of you, and I hope you are equally as proud to work for this great company as I am.

The future still holds many unknowns, including developments related to COVID-19; the economy; the recovery in demand for our services; healthcare coverage; and the potential for adverse changes in public policy coming out of federal and state governments. We may need to make adjustments again as we gain better insight into these issues. But, as I continue to visit hospitals and talk to our colleagues and physicians, I remain both inspired by the incredible work you do and confident that we will continue to succeed and honor our mission.

Sincerely,

Sam Hazen, CEO

For additional information about HCA Healthcare and the CARES Act, please access our FAQ.