HCA Holding Its Cards on Healthcare Reform

Wall Street investors want to know how Nashville’s HCA is preparing for some of the biggest changes brought about the Affordable Care Act, which come into effect next year. Company officials refused to offer specifics during an earnings call today.

HCA operates more than 160 hospitals in 20 states, making it nation’s largest for-profit hospital company. Milton Johnson is the HCA’s Chief Financial Officer. Since each state is taking a different stance on issues like setting up health insurance exchanges and expanding Medicaid, Johnson says HCA has to tailor its approach. I

“It’s going to be a very market by market driven strategy . There’s not going to be a cookie cutter, overall HCA approach. It will be market by market and taking into account the number of uninsured and the like and market share and the like.”

Part of the uncertainty is because the federal government has yet to release new rules for how Medicare and Medicaid will pay hospitals. Johnson says the rules should come out in April, but he says the company will likely see a $200 million decrease in those payments in 2014.

Also today, HCA reported a profit of $314 million for the fourth quarter of 2012. That’s down from a nearly $2 billion profit in same period a year before.