HCA Healthcare (HCA) 21 Oct 222022 Q3 Earnings call transcript

Welcome to the HCA Healthcare Third Quarter 2022 Earnings Conference Call. Today’s call is being recorded. At this time, for opening remarks and introductions, I would like to turn the call over to Vice President of Investor Relations, Mr. Frank Morgan. Please go ahead, sir.

to today’s welcome and morning, everyone call. on Good our Hazen; and me this Bill Sam is morning With CFO, CEO, Rutherford. Sam prepared and questions. remarks, some and then Bill we will will provide take

remind morning’s over forward-looking Inc. any that may uncertainties are to EBITDA current Sam, is call and adjusted With that, call management’s table statements the on Sam. we numerous call, turn should today’s morning’s I now over is being let the EBITDA, Before release. me is measure. expectations, everyone supplemental adjusted providing based of other replay that contain such and call in may which reconciling to this non-GAAP A risks, factors in More recorded, from today’s information I’ll our today. filings. to financial will results might a that today’s actual be factors later in those to are release refer HCA differ measures call these net press on materially listed This forward-looking and various call as on On turn expressed the cause statements available and income and today. information a be SEC to attributable included

call. for Thanks Good morning. joining the

has been to As I’ve on of the COVID-XX surges. over downs with various past calls, our we the pandemic and mentioned period business ups difficult it judge the because trends have experienced

the with to were sustained provide judge quarter the it Delta our the second third XXXX the surge difficult was third the the line We us recall, quarter of period for it our of internal compare. financial believe quarter and the quarter in variant, this most year the with expectations. you results significantly business, saw to If third our with business. most Generally, intense in yet us and influenced we making

investments ongoing caused mix constraints to workforce one acuity were certain including continued the volumes, invest we our situations with of compared was the a facilities. In stable. capacity more more generated Overall, with to hires our execution on market were revenue in quarter, challenges. opening thank These labor commitment These reduced campus. Galen generally College positive and production to our of teams. quarter, and our improvement labor I second Nursing by payer disciplined were reflection contract to consistent for new and expenses. and the in the by As results them significantly overall in their our want operating solid produced patients margins retention, enduring

impressed resolve the attributes dedication. be to put continue the to Ian. test with and Hurricane by These We once again were

some we this will perspectives into aspects upcoming provide on business on attempt believe shine. call, around of we to next with operational. year. or you reasonable pandemic of during or no was harmed the partners, of one people a the exception HCA insights patient the hurricane, Currently, to the year. Fortunately, storm. Normally, Healthcare early In our such are certain with X% continue the of all demand, disasters, X% to whether employee which as we face fully with And grow help our facilities of the a have

We acuity also and expect remain payer mix stable. to

certain. inflation, However, less we to with respect are

evolve our too related as We it. early the respond planning process as this. overall program, providing our our response we to these in response governmental finish with will of January. from XXXX I seen with our have we effectiveness costs. responded unprecedented pressures, macroeconomic of early initiatives to we and and to inflationary refrain we typical close will for have as well performance then, our By months categories impact assess it to our outlook environment and of financial another and Therefore, will continue responses until workforce but will three these various and the continue is forces the to the to resiliency judge early

We sustained and stakeholder our shareholder and position the value. work success continue long-term for Company to

we the the efforts is care Our analytics, us optimize built well our to models they grow But workforce. have plan position believe highly manner. and more over leverage to and care trained on better years to mission We deployed and and by provide deliver capital. patients with in designed us higher a a new these strategic innovative quality networks position efficient better resourcing technology effectively importantly, more our our and them to

Bill. to let turn Thank you. the me Now, call over

everyone. Thank you, morning, and good

some me on comments the provide quarter. additional Let

As per on XX.X%, sale third in was billion, quarter $X.XX, were of $X.XXX of Adjusted adjusted diluted with was Sam mentioned, EBITDA the was in earnings $X.XX. facilities share results and EBITDA margin our line our losses expectations. excluding

Our same our second third quarter consistent quarter the facility with volume were generally levels. levels in

prior Our in COVID-XX reflect to experienced the the compared surge volume trends year. prior the year we

and compared same QX they of in admissions second levels year quarter third equivalent to in down payer quarter. For X.X% were year represented versus to revenue third of comparable XX% admission generally consistent admissions levels were prior this with as and as Non-COVID and admissions Acuity XX% example, X% admissions are are mix in our between facility prior year. year, and up almost last well to X.X% per the the led second almost of increased and when the of of quarter quarter down COVID X.X% compared year. compared to quarter the admissions last third quarter this year-to-date.

September recorded Approval period $XXX program related million As Florida received expenses mentioned payment the in the million revenue XX, September directed $XXX this of program quarter. CMS approximately XXXX. in the to our was and from during for annual of release, ending we for

Florida we XXth, made million quarter. the the on Hurricane addition, in of landfall which on estimate was Coast West September In $XX Ian, approximately impact of the

on both the in Other stable, sequentially in remained line our for as with expenses and year. with a much second adjustments XX% absorb Our of compared made when but We operating the we’ve to great second and job increased in quarter due mostly increases employee were and the to labor past to programs that to the also calls. cost reduction identifying focused remain dynamics market costs. costs our generally wage opportunities. able the were labor fees inflationary efficiency market-based resiliency our expectations. Supply contract from DPP responding workforce to is compared are a this to overall, teams our doing quarter. and Florida We while expenses some And sequentially trends in this utility spoken prior professional

a Let and some HCA to me which sheet balance Healthcare. flow discuss be transition for to continue metrics, strength cash

billion capital billion year-to-date. spending the during of from under and flow cash operations completed share $XXX and just was $X.X approximately repurchase the Our million in $X.XX We $X.XX billion. quarter, was quarter

just quarter. to was end of the Our our $X.X EBITDA above we the available of ratio the approximately and of low leverage stated end at adjusted billion liquidity range, debt had

mention our unchanged. guidance Lastly, that remains I full XXXX year will

So, me go let we call to before with turn back the over that, comments Q&A. Sam quick to some for

that so to that line second wanted patterns are the encouraged themes our we’re resiliency and working our show point, we from it is themes initiatives; human we first, prospects, our number believe and are inflation making resource between real. way and with number three, metrics quarter up, It’s And business were think we to normal then stable our I judging of again, thing a takeaways long-term that; One believe and agenda, themselves; our follows: are share through third levels seasonality our beginning quarter. by but and exist top the Yes. progress sort are these agenda are on is two, we’re our growth we other and are normal are fourth engagement we trends pressure the across that as portfolio.

next and to important quarter our push third we into years as thereafter. second So as quarter judgment on are look those to and of to things, the the compared think, the we forward year

turn Frank, I’ll that, it for to with you over So questions.

Sam. you, Thank

reminder, in to give many to that As may one a question limit a ask please would question. those you to Dennis, we opportunity so now who the give a question. to possible queue ask yourself as instructions as like may an

your of Suisse. with Thank comes line A.J. the go today first from Instructions] And you. ahead. Rice question Credit Please [Operator

commenting And around Are surgery the and Hurricane the part broader you for just fourth is Thanks -- then in everybody. a maybe your impact technical early question. volumes. the of Ian One quarter. point. question on Hi, the

good the a trends fourth a at I’m assuming with was to quarter where Delta some any relates But, for surge. you’ve you in that from of to of you you’re year-to-date. with see some It that comments inpatient-outpatient, and consistent ago can think outpatient we normal might environment just shown are pattern, a like what step-up showed us what there? give versus clearly a You flavor year you the but seasonal normal sounds happening sort inpatient back there? last year

quarter. St. question able ill did let were and were out out north. I Charlotte it Tampa, up we I Ian, hospitals, give was hospitals to Bill let facilities comment Well, when hospitals just Ian most A.J., this we two move pretty ultimately as is hit hit we some in in the Hurricane believed area evacuate, fourth on around four County. me two patients first hard the further going Hurricane Sam. We perspective. When storm in to was the south the moved had everybody Pete -- the those on on back our critically storm of to two think I’ll mean,

already. able to significant we it One a were those suffered of hospitals pretty of damage and opened aspects get

back is by open, room operational we one of emergency open, end is and think our will the fully the med-surg floors of Our year. be back

incredible Florida Our impactful Florida hurricane. to really a teams an in job North and did really responding division West at

in third that So results quarter. influenced our the

North obviously down were volumes overseas Florida Orlando. Our the which West the division, Florida division, in in

So, storm. in we preparation had in a of lot advance of the management

to And our yields seasonal it patterns fourth typically on normal than in had starting volumes. believe impact are the a activity to quarter modest we on seasonality, surgery outpatient exist. that the quarter. respect do third more With that So,

we are So, our patterns, and so to surgeries, we’re yes. procedures business with of other And we seeing normal forth. cardiac that, respect on anticipating aspects think,

us gives and some so, initiatives where what judge ability working. that And we are to are

that important, third were it’s real. I quarter think understand constraints our in capacity the to A.J.,

some admissions the simply we capacity. many last was instances we through because can continue of had in move to accommodate And our last we this year. believe part next because declined challenges over constraints. of that years X.X% managing capacity in we in we we’ve to of total as X% that But, open the able But weren’t year the typical of more approximately patients, capacity the X.X and quarter, on to into the

HR need care that our we’re going our resolve the maintain us those. take sufficient is progress making to the need to of we So, patients who on agenda we services. capacity believe Again, help to

by we’re to we’ll the push progress that on agendas So, continue and encouraged, those we’re making. though,

Chickering line is Bank. Pito question the go Please with of from next Deutsche ahead. Your

you nursing then contract much. next can thoughts you quantify Thanks equation, I you full-time give How out the don’t schools, give of sort want we year. be, think of non-labor color some about growth any year? you sort sort of things? around the side the fourth increases line should price to about cost understand expect what coming but the grads on couple Any in guidance that us to demand. on managed XXXX Now, X% are at sort think this you year evolves of next of X% color quarter on any inflation And labor? color help on? seeing year? of do of can new care sort You XXXX next or point, XXXX? I that this for top a in that inflation how versus decreases of talked Where so pricing

Well, is Pito, Bill. this

at. I trends. I inflationary informed as around thinking mean, far gave balance about on we And really, our that’s line. the to you comments some of think get experience looking judgment the uncertainty into Take XXXX. the our what Sam try. year, And with coupled me go we’re remains Let top so

provide details. to So, a early too it’s bit too many

of continuation labor the with agenda. pleased We’re

our we’ll in the to But that’s pleased just reductions and overall that. commentary XXXX. we’re little environment We’re resiliency January. of as taking And continuation We bit the contract to we’re going of judge a our to you of teams and to we labor. able think countermeasures inflationary have judge full a into to give with time that, good are more kind what be efforts go

our quarter second with were as to in That the I wages a quarter. think happens contract timing just second third hour our the for XX% employees in at due to normal to to the quarter, benefit per our add a expenses. time, the and compared was quarter. for And flat wage cost partially reduction salary, adjustments the third same point

contract And so, management to absorb with expenses. we were that the of able our labor

our in quarter first in That’s seen cost you labor mix our we’ve the labor where components encouraging. a costs. was that while all per So, stabilization when hour of

recruitment area in labor continue and market pressures, some and strides that make forth. continue so our exist our as that to to retention in Pito, some moderate we So, management the capacity our execute agenda, hopefully of we’ll the on agenda,

is Your the Hynes next from Securities. Ann Mizuho line Please ahead. with question of go

to aren’t X% guidance is to X%. feel be about volume it’s a little that’s historically, coming maybe guide why the for year X% COVID to just they you exist, going back or X%. procedures year you I admissions, next talk be? Your height what a like Can normal and aren’t you lower while And to not typically than they used believe that since still at

is for think I -- this Sam, Ann.

think COVID don’t admission little will lower as a in than think trends X% much we that some ‘XX. will in because be ‘XX historical maybe X% I we have activity to bit the is

have for So, don’t our be trends some have we has think level be outpatient should we able see, investments it’s it to year. the the COVID the the when We if COVID, sort we with for inpatient network of But little normalize in activity making that normal stronger historical historically. same those normalize as would activity of our the of that strong in you trends activity, markets you we next that been. what with do we’re achieve which anticipate been than zone at and a

part So COVID. still bit little of There’s explanation. influence of the there from that’s the a

the Research. go line with Wolfe Justin Please Your Lake ahead. next question from is of

of XXXX. on couple a ask questions to wanted I Thanks.

in first, it your guidance. update that that -- -- didn’t you means remained intact. I update the So assume

Just is ex-COVID, your be can third might ex point, number we’re range swing the fluctuated to that a you just doing I think up? guidance where admissions through, able see end per pretty lot. us so then quarter, what curious, in COVID you give quarters COVID. given three we admission might within hoping growth good. was a that in were you to big revenue the Thanks And

Yes.

this Justin, Bill. is

saw guidance, year. a Yes, Let the environment have might well me than which the as this overall at for of just does in at to both, our appropriate it’s in this way balance in think year. the we’ve non-COVID wider revenue we first. adjusted point But time, guidance on previous uncertainties outcomes our given to admission, we we’ll and about, manage -- the we’re through maintaining we range of typically continue care. that talked growth Relative as managed accommodate the

get bear exact If you with me for a the I’ll you minute, number.

on non-COVID So points yes, revenue about we on up adjusted quarter. per were the admission for X the

And Bill, well? Florida that as would strip out revenues the

be. Yes, it would

is go line Your with the Cowen. Please of next Gary from question ahead. Taylor

ones. quick Two

my the Florida program of that headwind think et ‘XX The of or of a some constitute the first about Does a And number when is is some we period, patient the supply that you such continue obviously, we about labor actually I quarter for -- talked year-over-year. does inflation. that the this to headwinds pretty that performance is, for second Texas at comments annual hear out same? the is COVID good the if ‘XX, before, and per the your expect reimbursement, cetera. cost on adjusted you’d DPP, question down it’s look And then,

is or So, is about inflation signaling a and of concerned thing? And new in insurance operating, so that inflection the and ‘XX? sort other that that that you’re there’s utilities for labor, it’s are in point that you in

Yes. this is Bill. Hey Gary,

DPP. Let me address the Florida

a have approval. annual We to program, next are received is annual that not year. That headwind anticipating be an

of this some anticipate But, point, So, reported we for in evaluate as last continue, might that next will but approval. year, this material recall, continue fourth And it’s and at amount, subject year. we’ll we you would, with program are quarter to amounts the that. we to

this Yes. inflation, On And anything. is not we’re Gary, Sam. really signaling

market that other to business. worth want we months to with three of labor progress that hopefully, we some agenda suggesting efforts. and three just that had months’ haven’t we our us of that give categories and point hope where that cost of in more the and understand where that we those. we different run and particular And and We’re that’s on pressures us, time the exist that ‘XX, our is, think Again, X, initiatives for you will we’ll go think at are within normal positioning inflationary And for help how make XX years. inform more give our specificity each of will the

UBS. is Please go question next Your Mok with of the line Andrew from ahead.

point, so commenting you bridge understand to at baseline? Thanks. in you’re XXXX help benefits a us but on this the can can XXXX, of proper not level we understand nonrecurring XXXX I

around mean, we the that to And this in we’ve that related to around was approximately sized we’ve before don’t That payments out-of-period recorded we that million. I talked received year year earlier anticipate we last COVID $XXX Texas year. the support the publicly Well, then, various amounts $XXX continue million.

And two But this would the that those two at we’ve things so, XXXB there. I be those out the point. about And would talked there are other pluses minuses, areas is and is before. highlight

Your next go Mayo Whit Securities. question line is Please of with from SVB ahead. the

your the just year? on frame quarter seeing that is maybe FTE Thanks. an declined per want quantify and a wage disclosure and level percentage put it inflation third way Can different how to back as the to you’re of of market-based to And SWB maybe from or comment of appreciate exit also basis, what a the just any perspective hour adjustments, to the beginning basis Thanks. that maybe there on maybe that into rate the in go for minute. that contract is? I the labor I that XX%. you also, a Bill, is

the about quarter, exit the that’s as Yes. and to Whit, rate, for for much pretty close SWB our the contract you of say, on quarter. labor was X.X% percent

was a half that the reduction of continued improvement. Roughly utilization the through good contract average of and speaking, So half though hourly rate labor. reduction of of that’s

So, forward. we’re those very going pleased trends with

to Yes. increases Sam. little this Typically in We bit the market of we a been the our and the so give little we throughout is we’ve bit here adjustments through. varies wage our year that’s little share lion’s year, a there bit market significant. to -- a throughout active when last needed And Whit, but felt targeted quarter. But market. It or go the increases more third with be

X%. little the -- of composite north we So, is a

as contract at that’s still we did increases expense yielded look quarter as quarter, third again and hourly that able management in second you to third quarter. second If forces. the to cost labor a of than We to the quarter in are quarter, just a our third compared as Again, our employed for far lot we absorb the rate to were average labor and labor quarter running with flat contract nurses composite XXXX. more with inside second

execute we as to our we really management on and done We So, go, make experience room improving there. of as our obviously resource to have a And better job recruitment creating that applicant out to we’ve experience our invested a processing our heavily they’ve teams wonderful human well have happen. better for believe. in capabilities, and agenda a recruitment management

to very seeing compensation retention benefits and we’re intentional and forth in order flexible have scheduling and improve We and so there. progress efforts, retention, including

just positive. Our in, came very engagement results

juncture, understand really we’re we capitalize are. over particular our this that, our at can encouraged abilities time. change. that’s where on We That So modifying by to but workforce

go Capital Your of Please ahead. is Markets. Ben from with RBC next question Hendrix the line

And of -- And on labor managed have out noted wondering And to quarantine better. competitor and how staff as you your on scheduling agency saw an had of obviously seem of quarter that? quarantine any terms they clearly, you to labor, agency you a much this electives delays you outpatient what rates -- in and if prior? and changing increase manage this impact Thanks. the an were quarter, on I’m in able result saw versus your rates? One clinicians quarantine

of this any but -- don’t that that had quarter for year, people I’m on quarantine. we year. our there we issues Delta us for a that our last significant you quarantine in Thank Obviously, has our But know who surfaced piece of I We as an were with experienced the number wasn’t mean, who Sam. is This the staff issue of COVID divisions. across a year us. issue in for workforce, I not third some out variant, it experienced were sure this some question.

of go Bernstein. question Please Wilkes next Your line Lance ahead. from the is with

Yes.

if the if bit So, any on or about you, some on could negotiations What environment, terming you in give you’re contracts? that you maybe talk if little termed with care? progress rate a you’re are seeing fact, smaller managed that? hospitals contracts any seeing market can And Thanks. context

of previously has, incurring inflationary contracts Well, some fact, past payer in and the received on we’ve of land, in the our mid-single-digits. mentioned expected in somewhere pressures community. that well this generally where cost quarter happened. are the and structure third year, by we our target that in indicated in the were being we And felt we’re that reasonably additional was We the closed we to they the that had contracts new that

making with to we So, renegotiations. our are respect progress

As I add XXXX, the third for mentioned, already in to were that negotiated continue to completion move rate negotiation we quarter. through we as partially contract and we

renegotiations escalators for commercial XXXX, XX% historical XXXX we’re about seeing elevated about contracted XX% on we we’re have book. and by trends So, and by contracted and encouraged occurred, contract to our for the that are our comparison

our competitors, to terminations relates negotiations there’s it so and always where there’s pockets forth. As of

reach had we’ll be work have to payers, for us fashion. agreements to We significant make work and happen. been continue in hopefully to that not We’ve able terminate and able any that contracts for any the to

forth, so productive we be and us the with working productive discussions that the into to with our think accounts that way incorporating we payers payers. timely and sure and making in a are that our to denials for receivables respect with are handled hopefully appropriately respect for are We and will

Brian is line of Tanquilut question Please the next Our with from Jefferies. ahead. go

last time how down I You insight about resilience the mean, ‘XX the some volume a you fairly guys your of that this into around But, as recession and next versus well during maybe any you I business? XXXX? thoughts did are we to just guys Sam, the stare providing year’s recession, differences thinking appreciate thoughts but some on here, expectations. on

I the Affordable heretofore difference, believe, a provides mentioned Care and have. that material on the had for a And Act most safety call we earnings potential previous think is the that in recessionary this positive. cycles community is net Well, we us, we last I the and exchange didn’t that,

As and and new at gauge a But Act support dynamic, that we and Affordable believe particular because over exchanges lag and the not see the a services to favorable provide, it relates of of for forth to the cycle how this our with to under economy the aspects it part to it in of other business, tends our when hold, would of a we’re the the rest but demand healthcare fade recessionary that dynamic. people to and sort Care that juncture, we so demand sure time. COBRA tend the was earlier it’s then benefits were be

particular So, point judging that future this a impact would be the cycle. where are with recessionary we at of

I us think, in sheet to teams be efforts and should best balance certain share. to agenda can resiliency hopefully the that We opportunities to think they our to gain and create and make can in other where market where and put are successful. invest is for us situations anticipate strong with to working our position adjustments they our anticipate

Nashville, stronger as be It Florida, nation fairly little we whole, strong Texas, durable These You the than are whole. a markets may as a our Vegas. a economies, look believe. at

support in potentially So, a go as hopefully that some can into recessionary add the future. we cycle

line ahead. Your next is Bank the of Fischbeck Kevin of question Please from go with America.

question volume there’s we a about of thinking about normalization. be should I how guess, somewhat

like getting mean, probably below to you’re about how guys markets you are you still would year. but And you thought below you’re grow that it from average XXXX, were you’re growth if that You up rate -- your are it where again farther durable, X% still but is like that being demand and near it to feels talking in have farther term. year looks in next trend think saying XXXX. you to X% every to like you’re line above X% sounds I the away X%

how be say other the help it to labor it, you right or that it, factor us Is you frame to the that gating us not? back it -- is are to can think we to way should the that there? if But is long thinking about think way is if that and trend Are how happen So, there has can back getting what you just how to right about about I trend thinking things that? about get line guess line? to

of not as some we the couple do now, between a right make held I and healthcare me are is Let being are comments. people happening there for And think had labor anticipated. primarily demand pushed of transfers of out, an healthcare imbalance supply constraints. because of being they’re Again, up.

that heard we’ve maybe that ways earlier didn’t our clinic Anecdotally, year, to that. the from to some influence are physicians in some they their of starting practices is there recover recover. So, in

at our activity comparison migrated XXXX, side during So of X% has the level. some on fairly total look XXXX, time quarter the today, third that’s at outpatient outpatient When encouraging to our significantly of think outpatient Obviously, us to against period. XXXX grown the you joint to X% activity. or business over we that

Our a movement. is which the is most explained joint of inpatient down total little by bit, activity

think it, you were that So, asking business or about ourselves go not. did we when away

in historical it actually to you moving the sequentially even growing I visits ER a second X% which activity business, and grown because commercial by more that great bit Again, have we’re quarter. grown shown we quarter. had think third a is little our itself, year little trend. little non-COVID when That has what the of at a influence of look admission non-COVID we’re rebounded in activity a have and encouraged to deal this and this resiliency. we bit at year-to-date look gives when quarter seeing. of we COVID we’re first the closer by activity, So, us quarter But, encouragement bit

historical not. closer migrating it’s to think the we trend than So,

is move-out that’s mean Would there’s you something outpatient unusual, every... say to the knee then a always shift hip or I that

some there always it. elements Yes, are of

we’ve pronounced that seen think long more I in time. that a one

is Please question next Your from with Scott Stephens. of the go Fidel ahead. line

uncertain Question health seeing redeterminations ultimately one how of another you benefits that you just next emergency PHE the would that what not. Thanks. the back us your And just XXXX see probably and just item, or you’ve Can would well key for health factor impacts or be? from around, pulled Medicaid remind as for return public swing the whether of just been just of finally factors emergency thinking be around into in for HCA gets is sort would again, obviously, the but that the year, helpful. the is others Clearly, biggest go would any public away?

is Yes. Scott, Bill. this

think primary about. DRG we’ve coded that spoken was the add-on payments the I to

Given us. the for hasn’t kind has that volume moderated, been of COVID material

area So, that’s the there.

As you good Medicaid said, We’ve occur exercise then -- the I planning and it redetermination if more got, process that. around expire, does just significant evaluated think, probably We’ve does this. when the what is it next area various will states. by

ourselves Medicaid add-on point, the So, on then the consequences those material to not I and be at would redeterminations. we’ll think this PHE, through prepare effects of go or the DRG

Citi. from the with Please is Cassorla Your next ahead. Jason line question go of

Thanks, morning. and Great. good

if trended related versus previous for higher it flu how and your your And what just COVID just seasons? for to trends, quarter? on activity you labor backdrop just COVID for how thinking the and accelerate maybe you’re in an flu this you’re year of perhaps we thinking then, But, are would about maybe and quarter guidance current should in this for environment expectations has quarter, will help this fourth flu what elevated think I if far guess, fourth Thanks. historical Just versus about so can XQ? context than And year, mean also, expectations.

have Yes. with I’ll We start COVID. quarter don’t specific fourth projections.

I about my admissions comments, second. said quarter. As ran third the about We our in in X% X% the we in of ran

we intuition in areas there. my between says somewhere see an on might So, the be those quarter area fourth

our might anticipation be a think necessarily there the volumes, of In any changes thought. to paying previously quarter flu projections trajectory made for it are haven’t to I don’t clearly, in we’re attention terms flu, flu of the busy what again, But compared that flu season. that the we fourth but specific out volumes we that

the Please Your ahead. from is James. line John next Ransom Raymond of with go question

you And in plateau morning XQ XQ. XQ temp labor, X Good X% that in labor I’m [ph] percentage from you update that just hit heard Hey. a reduction account sequential you -- flattish the in range if you if XQ. Does trends gave talked about? to thinking say X% maybe I about look continued or for you

We labor contract as to I we’re about, know, feel only something we’ve progress think levels, in X% labor we this to in the range early -- of of part it’s terms stay that year, around Well, SWB hovered percent can contract the balance X%. made down not we going the think year. the to you the of in good have for that see we

I But the is about some see there think And to is labor feel and in. generally we’re trends, recruitment some so, with environment yes, incremental majority labor flat, hold I Too can improvement of the continue positive utilization specifically to growth. we think retention it contract we improve. think as early call we about the

this So it again, to just see feeling have at labor how I agenda we’re the out, think positive about but point. we’ll turns

Your next Research. go of Joshua the ahead. line question Raskin with Nephron is Please from

that you capital, maybe expenditures, the last And repurchases wondering, thinking your us I your an quarter we on could maybe anything on in XXXX. capital share should was you’re read returns give how into spend seeing lower into Bill, about you’re related if to the here? update

And -- we see continue think No. returns, good don’t there’s in anything read This that. deploy of capital projects to is to capital. terms into should I you

spending hover billion. $X.X year We capital will this continue around total believe our to

we’ve capacity next got will growing range. planning in to balanced pretty is for it with the position. the anticipate allocation development. stages as I see I great as sheet think a to meet a balance and both, year, but outpatient to work, that a of cash The is continue that of capital stays HCA, program indication in materially again, demand be And I to of in capital. inpatient well profile put in the And opportunities we We’re think an what

for full program this think year. $X share around year hover repurchase I our the will billion

capital. strong again, think of So, allocation it’s I

reasonable forward. We’re going returns intending to drive

of Are total, right And Bill, you’ve that on past on I range? said projects? including XX% total sort of north and the around returns mid-teens still growth. you think CapEx guys Is generating the CapEx, something in return still maintenance those

when obviously, mean, teens. varies. I project in But each Yes. invested and our the at we’re overall I step look up return capital, high on

investment the encouraged decisions. we’re by of net that effect of all our So,

Sachs. from Perse ahead. Jamie the with go Please is Goldman of question line next Your

facing, in you managing on a think see those wanted XXXX. well discharge? day as on length you key basis? of of capacity talk if terms mean could elevated It’s quite of versus also over throughput are the Do still patient what And or the will you’re your expansion What go bottlenecks both about as costs admission XXXX? inpatient per per does stay. I course that away and to

That’s I This important to thing. think Sam. understand. one is

up stay of XXXX. But even our is length up over case Our more. is mix

our down. case at adjusted basis, length of it’s look a actually you when mix So, stay on

that’s encouraging. So,

opportunities. Now, we have

opportunities, significant providers technology, providers partnerships that believe, space We our own case subacute really of better protocols, better have facility. in we throughput our the use management with and improve better in to with

we Just and as be XXXX, of management continue management That And we key an capacity update agenda, incrementally a our had to move this labor into progress we as making. they’re past well. by actually, part think case our the on on week, encouraged is we will continue. that that management and

resiliency I to program, case as overall our it’s for it. connected will well. over to stay effort our mix lot for But, have of facilities. key and a increased value the add value our got XXXX, is believe we in within that’s somewhat to as and our our which ingredient is, of patients But, fact, the throughput a continue well as our efficiency and length adding So, efficiencies influenced significantly

ahead. from of Calvin JP next Please is Morgan. with Your the Sternick line go question

me Hi. squeezing in. Thanks Yes. for

impact quarter. think the on had I volumes noted in capacity you that the

be visits think a if ER quarter? to same-store I And you guess, sequentially. that’s picked one, bit curious, going Just it relatively consistent up fourth going looks like then, the into

Just seeing there? And any are has episodic been Thanks. mix some you in setting? bounce more care shift to payer starting in you’re curious, see that there to back the start

relieve will I’m quarter. the adding agenda and still our we have that we’re fourth the that Well, capacity some more of in fact beds. some will recruitment we headcount it constraints with hopeful and opening

case just our will think I us as I also, for capacity as management mentioned, well. efforts create

So anticipate at just patients being to And level this it is and It a pre-pandemic, take -- new closures much but times. happened with unfortunately today. do at but particular this there certain at happened respect able us having here lower some it to I point. on than

the by to we’ve relates room emergency how our it impressed are. As been services resilient ER,

and our healthcare our We important well of our as overall, as we facilities, continue We’ve throughput of ingredient to platform capacity the our emergency XX/X, freestanding and and fundamentally We believe a to communities. care work within our in so key important as the to some rooms capability it a care take that of added system for that is of that’s they on area. operations emergency been of. inside very outreach XXX to provides people offerings be room deserve hospitals our room can with overall emergency our our taken

in still growing that have in selective we we’re in very what investing, believe so, mentioned, we as available the I to supply sure ways demand. for rooms our emergency right make And order be to

Fargo. Stephen is line Baxter the with question next of from Wells Your

but outpatient a a with to about like as typical like guess, least based any doesn’t have it looks year? to flag in I impact key that on you’d expected QX quarter. in the maybe might should we think bit ask compared from inpatient And the earlier from have the year. than look benefited revenue wanted you. surgeries What down to It it sound outpatient back I does some that? like moving more mix might at demand? you the in distance, stepped of pent-up it of your some Thank drivers about comments,

don’t anything I think No, structurally. there’s

we more anything outpatient of sequential -- quarter was and trends, don’t the year. I Delta the was constrained year activity outpatient trends. surge and different and in But QX last and revenue inpatient in of being outpatient during managed see think going capacity between of saw potentially, busy QX second the last terms on we COVID structurally on Delta

And of the go comes ahead. today’s Please with Barclays. final line Sarah James question from

can what ‘XX related it in. mix Hi. lift from normalizes? for of per Thanks me in a dynamic that’s you as consumer reactions, COVID the there dynamic? falling mentioned just then, to clarify we’re to escalators, payer I if do Has labor the contract either or escalators some that XX to quick acuity or static some about in would to And off acuity admission And coming acuities clarification. a been has economy? think the cost Earlier a you squeezing reflect labor talking fluctuations. revenue the Because low cost of

if want question. Sam. components inflators have contracts our or with is that, Most corridors, answer This inflation. the call I’ll to do respect it to that We have of to last you dynamic are static. some

inflator static our will So, of most negotiate front more that be of a end. XX we the on

are of contracts that’s how so, our structured. most And

Yes.

growth case no-COVID -- us. case been I some We’ve our been mix stable seeing in we’re In has case mix, mix the terms of mean, trends. for

obviously, our in have that’s QX. acuity In ran mix mostly levels haven’t decline stable, been higher remarkable we so basic when factor. at any a we business, COVID COVID the in noticed So, between and But, look case the been but that. trends QX a non-COVID, or

So, fairly a indicator. that we’re as reading positive

Okay.

low people about not a acuity or So there’s kind COVID economy falloff non-COVID that’s the either just from of worried of...

seeing stage. No, of trend we’re at that not anything this

time, continue any this at Please with closing questions. no further And remarks. there are

weekend. Hope help for any so I’m very if everyone, questions. have for Dennis, I a much. thank answer can you the you afternoon, additional Thanks, around wonderful your joining call. today. you this on us Thank much

participation. This for conference concludes the Thank call. quarter you your HCA third XXXX Healthcare earnings

disconnect. now You may