Monday, August 12, 2013

US Hospital and Health Services Corps 2Q 2013 Earnings Up 5%

I found 8 publicly-held, For-Profit US Hospital and Health Services Corps which generated After-tax Adjusted Earnings of at least $50 mil in either the 2Q 2013 or the 2Q 2012.

These 8 Hospital and Health Services Corp generated Total Adjusted Earnings growth of 5% in the 2Q 2013 over the 2Q 2012.  And the two hospitals with steep declines in earnings.....Community Health Systems and Health Management Associates.....are merging and my hunch is that they will do much better in the future on a combined basis.

And when I study the Non-Profit Hospitals, what I continue to see are substantial increases in Net Assets pretty much across the board.

The Affordable Care Act has been extremely helpful to hospitals.  Granted, the US States refusing to expand Medicaid will hurt many of the hospitals in their States financially, but this will be substantially more than offset by the prescient States electing to expand Medicaid.  Thus, on a national basis, hospitals will continue to be financially buttressed by the Affordable Care Act.

Below here are the earnings of these 8 US Hospital and Health Services Corps for the 2Q 2013 and for the comparable 2Q 2012:

2Q 2013 2Q 2012

Adjusted Adjusted

Net Net

Income Income

From From

Continuing Continuing Increase Increase

Operations Operations (Decrease) (Decrease)

mil $s mil $s Amount %
Hospital and Health Services

HCA 423 391                       32 8%
Davita Health Partners 197 147                       50 34%
Universal Health Services 114 104                       10 10%
Mednax 69 61                         8 13%
Tenet Healthcare 69 44                       25 57%
HealthSouth 50 40                       10 25%
Community Health Systems 30 83                     (53) -64%
Health Management Associates 19 54                     (35) -65%

Total all 8 971 924                       47 5%