The hospital chain, which has a large stake in Florida, estimates the storms cost it $40-million from the bottom line.
By KRIS HUNDLEY
Published October 14, 2004
HCA, the nation's largest hospital chain, said Florida's hurricanes dealt an estimated $40-million blow to its bottom line in the most recent quarter as the storms forced patient evacuations, disrupted scheduled surgeries and damaged numerous HCA properties.
In a preview of its results for the quarter ending Sept. 30, the Nashville hospital company said Wednesday its earnings would be reduced by about 5 cents a share by hurricanes Charley, Frances, Ivan and Jeanne.
Net income for the third quarter is expected to range from $222-million to $232-million or 46 to 48 cents a share, compared with analysts' estimates of 60 cents a share. HCA officials said earnings were affected by the planned closing of a hospital in San Jose, Calif., and a decline in per patient income.
The company expects to report $5.8-billion in revenue for the quarter, up 5.9 percent, when it provides final results this month.
Florida's string of storms had a particularly strong effect on HCA because the state accounts for about 25 percent of the company's revenue. HCA operates 40 hospitals and 28 surgery centers throughout the state; virtually all experienced some degree of disruption because of the storms.
While HCA's nine hospitals in the Tampa Bay area escaped major damage, its facilities in southwest Florida and the Panhandle were not so fortunate. Hurricane Charley in August forced evacuation of the company's Fawcett Memorial Hospital in Port Charlotte. The hospital, which had storm damage to its third and fourth floors, had to stop accepting admissions for four days and continues to operate with limited capacity.
Gulf Coast Hospital in Fort Myers received extensive damage during the same storm and was closed for nearly two months.
During Frances, HCA's hospital in Okeechobee was evacuated and partly closed for about six days. Ivan caused significant damage to HCA's West Florida Hospital in Pensacola and devastated the adjacent doctors' offices, also owned by HCA. Jeanne affected about 17 HCA hospitals on Florida's west coast, causing some structural and water damage.
Storm-related disruptions at HCA's outpatient surgery centers led to a 13.2 percent drop in procedures in September compared with a year ago. Hospital admissions in the state were down 0.3 percent for the month.
Separately, HCA said its board approved a buyback of up to $2.5-billion of its shares at prices ranging from $35 to $41 a share. The tender offer will expire on Nov. 10.
