HCA - Embedded Expectations Analysis - 2018 08 03
HCA Healthcare, Inc. (HCA:USA) currently trades at historically high valuations relative to UAFRS-based (Uniform) Earnings, with a 17.2x Uniform P/E. However, even at these levels, the market has bearish expectations for the firm, while management has concerns about growing competition in the emergency room business, and operating marginsSpecifically, management appears concerned about increasing competition in the emergency room business, particularly with substitutes like urgent care. Additionally, they may lack confidence in their ability to maintain operating margins, and might have concerns about the impact of their new facilities on earnings per share performance. Moreover, they appear to lack confidence in their ability to sustain freestanding ambulatory surgery center growth, and may be concerned about the reduction in payments to 340Bs
HCA Healthcare is a holding company. Through its subsidiaries, partnerships and joint ventures, the company owns and operates hospitals and related health care entities. Most of the company's general, acute care hospitals provide medical and surgical services, including inpatient care, intensive care, cardiac care, diagnostic services and emergency services. The general, acute care hospitals also provide outpatient services such as outpatient surgery, laboratory, radiology, respiratory therapy, cardiology and physical therapy. The company's psychiatric hospitals provide therapeutic programs including child, adolescent and adult psychiatric care, adolescent and adult alcohol and drug abuse treatment and counseling.
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