HCA Healthcare, the nation’s largest for-profit hospital chain, crushed Wall Street’s second-quarter profit expectations despite the coronavirus outbreak forcing hospitals to suspend elective procedures for several weeks during the quarter.
The bottom line: Medical claims and revenue declined markedly among hospitals during the height of the pandemic, which has benefited health insurers. But that didn’t stop hospitals from making big bucks, a large chunk of which was subsidized directly by taxpayers in the form of bailout funds.
By the numbers: HCA’s second quarter profit was approximately $ 1.1 billion, an increase of 38% over the same period last year.
- HCA has so far received $ 1.4 billion in coronavirus rescue funds, of which $ 822 million was recognized in the second quarter. After deducting taxes, HCA recorded $ 590 million in taxpayer bailouts in the quarter, representing 55% of its earnings.
- Revenue in the quarter fell 12% to $ 11.1 billion.
Between lines: The decrease in patient visits was short-lived in most HCA facilities.
- Hospitalizations in the second trimester decreased 13% year-over-year, and outpatient surgeries fell 33%.
- But by June, everything was back to normal, HCA chief financial officer Bill Rutherford said in an investor call. Outpatient HCA surgeries were actually 1% higher in June, compared to last June.
The panorama: The extremely profitable HCA report comes the same day that the health care industry asks Congress for an additional $ 100 billion bailout for taxpayers.
Go deeper: The coronavirus is further dividing rich and poor hospitals.
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