HCA Healthcare reported second-quarter revenue of $20.23 billion, beating analyst estimates of $19.76 billion, while adjusted EBITDA of $4.03 billion also exceeded expectations. However, the company lowered its full-year EPS guidance to $29.60 at the midpoint, missing analyst estimates by 1.2%, as an unexpected increase in uninsured patients following the expiration of enhanced premium tax credits pressured margins. CEO Samuel N. Hazen noted that adjusted admissions for patients formerly covered by health insurance exchanges declined by 15%, with nearly all of those patients becoming uninsured. CFO Michael A. Marks explained that the updated guidance reflects this payer mix shift, which was a bigger driver than initially assumed. Analysts on the call also questioned management about declines in elective surgeries, cost trends, and capital allocation, with Hazen attributing elective softness to affordability challenges and loss of coverage.
HCA Healthcare, Inc.Lowered full-year EPS guidance due to payer mix shift and margin pressure.