HCA Healthcare revenue curtailed by labor costs

Editor's Note

HCA Healthcare, the biggest health system in the US comprising 182 hospitals and some 2,300 ambulatory sides based in Nashville, Tennessee, announced on April 22 that its first quarter financial and operating results fell short of projections, HealthLeaders April 22 reports.

Despite an increase in revenue, higher labor costs “weighed down” the bump. HCA’s first quarter revenue was $14.94 billion, higher than the $13.97 billion from the first quarter of 2021. However, HCA adjusted its EBITDA for the first quarter (earnings before interest, taxes, depreciation, and amortization) at $2.94 billion compared to $3.05 billion in the first quarter of 2021.

The shortened returns reportedly went towards “higher expenses to keep and attract workers” in an effort to combat the national labor shortage crisis. HCA also updated its revenue projection for 2022, going from $61.5 billion to $59.9 billion, “nearly $500 million below the earlier forecast,” HealthLeaders noted.

Read the full announcement from HCA here.