J.P. Morgan Healthcare Conference: Revenue Shifts to Outpatient

Scott Mace, for HealthLeaders Media , January 17, 2014

In the past two years, HCA added 900 new beds, and has achieved 22 straight quarters of growth, says Milton Johnson, president and CEO of HCA.

"We've achieved this performance in a tough growth environment," Johnson told investors.

"While we are developing strategies to take full advantage of the newly insured, we are also continuing to build on the strategies that have enabled our strong performance over the past few years," he said. "We see healthcare reform as a net positive for HCA. Some of HCA's most important markets are in states with the highest level of uninsured. This is certainly true in Florida and Texas, which between them represent about 50 percent of HCA's revenue, and when enrollments finally do begin to pick up, we expect to get a lift from reform."

HCA has a good starting point in payer networks as a means to accessing these newly-insured exchange members. "It's worth pointing out that we're just in the first inning with respect to healthcare reform," Johnson says. "No doubt the recent early implementation issues raise the level of uncertainty in the short term, but we remain optimistic that we will see positive impact over the long term."

Scott Mace is senior technology editor at HealthLeaders Media.
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