HCA Healthcare sees elective procedures rebound as staffing woes ease
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[January 28, 2023]
By Khushi Mandowara and Leroy Leo
(Reuters) - HCA Healthcare Inc's management on Friday forecast lower
labor costs and a recovery in non-urgent procedures for 2023 as staffing
trends improved following an exodus of nurses during the pandemic.
The commentary helped shares of the largest U.S. for-profit hospital
operator reverse course to climb as much as 2%. Rivals Tenet Healthcare
and Universal Health Services also rose 2% and 1%.
HCA has seen the rate of staff exits fall to around 18% from the
mid-twenties last year, but it is still higher than pre-pandemic levels,
Chief Executive Samuel Hazen said in an investor conference call.
Millions of people left their jobs during a prolonged pandemic, in what
was dubbed "The Great Resignation", and the nationwide shortage of
healthcare staff kept hospital operators from resuming high-margin
elective procedures at full pace.
"We have been able to recover some of the employees who traveled for a
period of time back into our organization," Hazen said. Non-urgent
procedure volumes are now expected to go back to normal.
![](http://archives.lincolndailynews.com/2023/Jan/28/images/ads/current/castlemanor_sda_FINANCIAL_2017.png)
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![](http://archives.lincolndailynews.com/2023/Jan/28/images/ads/current/werth_quarter_LUAL_2022.png) The hospital operator saw hiring of
nurses increase by about 6% last year, with many new graduates and
some returnees.
HCA's stock had fallen earlier in the day after the company's 2023
profit view of $16.40 to $17.60 per share missed market estimates.
It had also flagged a hit to revenue from the rolling back of
certain COVID-19 government support programs.
Stephens analyst Scott Fidel said HCA's additional planned
investment of $150 million for this year, partly for the expansion
of nursing schools, was the main driver of the miss.
![](http://archives.lincolndailynews.com/2023/Jan/28/images/ads/current/maskeauction_sda_LUAL_2022.png)
"I think, relative to our model, the one primary difference that we
had not anticipated was the additional investments."
Excluding one-off items, HCA reported a profit of $4.64 per share,
below analysts' average estimate of $4.78, according to Refinitiv
IBES.
(Reporting by Khushi Mandowara and Leroy Leo in
Bengaluru; Editing by Shinjini Ganguli and Devika Syamnath)
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