The one that dominates is Nashville, TN-based giant HCA, which had its second straight blowout earnings quarter in the 3Q 2012 with Pretax Income growth over the prior year's quarter of 28%, nearly matching its 29% Pretax Income growth in the 2Q 2012.
But there's more to the HCA positive earnings story. HCA's US GAAP After-tax Net Income Attributable to HCA stockholders was $360 mil in the 3Q 2012, up a massive 490% from the $61 mil earned in the 3Q 2011. This substantially higher earnings growth of 490% is much higher than the 28% earnings growth on an Ongoing, Core Pretax Income basis due mainly to a Large Loss on Debt Extinguishment recorded in the 3Q 2011.
But check this out.....HCA's US GAAP Earnings Per Share growth in the 3Q 2012 was up a monstrous 609% over the 3Q 2011. What in the world is going on here? Well, HCA had a monstrous stock buyback strategy, which is driving this. Yeah, financial engineering is playing a key role in HCA's incredible Earnings Per Share growth in the most recent quarter.
And so, yeah, HCA is doing extremely well under the new Affordable Health Care Plan.
Just like the Health Insurance Corps, these Hospitals and Healthcare Service Corps will be receiving huge economic benefits down the road in 2014 when the Affordable Healthcare Act totally kicks in, and their number of patients/customers served increase substantially. Also, these Hospitals and Healthcare Service Corps will benefit in 2014 from lower Bad Debt Expenses.
I am excluding Losses on Debt Retirement in deriving Ongoing, Core Pretax Income.
Below here is the Ongoing, Core Pretax Income (PTI) of these 5 US Big Hospital and Healthcare Services Corps for the 3Q 2012 and the 3Q 2011.
| Pretax | Pretax | ||||
| State | Income | Income | Increase | Increase | |
| HQs | 3Q 2012 | 3Q 2011 | Amount | % | |
| mils $s | mils $s | mils $s | |||
| Hospitals and Health Services | |||||
| HCA | TN | 677 | 529 | 148 | 28% |
| Davita | CO | 271 | 259 | 12 | 5% |
| Universal Health Services | PA | 153 | 147 | 6 | 4% |
| Community Health Systems | TN | 136 | 133 | 3 | 2% |
| Mednax | FL | 107 | 94 | 13 | 14% |
| Total all 5 | 1,344 | 1,162 | 182 | 16% |
So, that's pretty cool. But just how have Hospital and Health Services Corp Stocks done since President Obama took office?
Well, fantastically.
There were 9 Hospital and Health Services Corps which file their financial statements with the SEC, which had Pretax Income or Loss of more than $100 mil in any of the most recent three years, and which had their common stock trading on both January 16, 2009, the last day stocks were trading before President Obama took office, and also trading now.
These 9 corps had an average stock price increase of 166% since President Obama took office.
How any rational person, working for one of these publicly-held hospital or health services companies, would want the new Affordable Health Care plan repealed is totally beyond me.
Yeah, the Obama Administration has done many very beneficial things for all hospital and health service companies.
Below here are the common stock prices for each of these hospital and health services corps on the most recent day's close, yesterday, Thursday, November 1, 2012 and also on January 16, 2019.
| Stock | Stock | |||
| State | Price | Price | % | |
| HQs | 11-1-12 | 1-16-09 | Increase | |
| Hospitals and Health Services | ||||
| Tenet Healthcare | TX | $25.40 | $4.76 | 434% |
| Health Management Associates | FL | $7.73 | $1.68 | 360% |
| DaVita | CO | $112.36 | $48.17 | 133% |
| Universal Health Services | PA | $43.66 | $18.94 | 131% |
| Mednax | FL | $73.44 | $32.49 | 126% |
| Healthsouth | AL | $22.75 | $10.93 | 108% |
| Amsurg | TN | $28.93 | $17.18 | 68% |
| LifePoint Hospitals | TN | $37.43 | $22.60 | 66% |
| Community Health Systems | TN | $29.75 | $18.03 | 65% |
| Average Increase: All 9 | 166% |
