Image by Gerd Altmann from PixabayHCA Healthcare Inc. (NYSE: HCA) is set to surpass its volume and growth targets, driven by favorable market conditions and strategic investments in outpatient platforms.
That’s according to HCA CEO Sam Hazen, who offered an update on his company Wednesday during an investor presentation.
“We have a 3% to 4% guide on our volume growth in 2024,” Hazen said, adding that there is the potential to exceed these targets given the strong first quarter and supportive market forces for HCA.
The Nashville, Tennessee-based HCA is one of the largest health care companies in the U.S. The system includes 188 hospitals and more than 2,400 ambulatory sites of care, including ambulatory surgery centers (ASCs).
HCA’s ASC arm is Surgery Ventures.
“I think HCA markets, generally speaking, are better than the national average,” Hazen continued. “We see a lot of population growth, strong business growth, a very friendly regulatory environment largely, and that’s yielding what we believe to be a very good economic environment for us to conduct business.”
He added that markets such as Texas, Florida, Tennessee, South Carolina, Utah and Nevada are expected to drive growth.
The three primary drivers of revenue growth for HCA will be pricing, acuity and payer mix, Hazen said. He said the company has strategically adjusted its pricing to account for inflationary pressures on nurses and physicians, aiming for mid-single-digit increases in the commercial sector.
Although he did not give much specific guidance to the company’s ambulatory surgery center strategy, he said that the connection of ambulatory facilities to HCA’s hospital ecosystem gives HCA a leg-up on market competition.
“We have 2,500 ambulatory facilities in our company,” he said. “We look at it as if it’s an ecosystem around each hospital. That averages 12 or 13 outpatient facilities for every hospital. We connect each hospital’s ecosystem into a market system, and then we connect it to the national system.”
Investment in outpatient platforms
Hazen said HCA will continue to “invest heavily” into outpatient platforms.
“[Outpatient platforms] are low capital,” he said. “They get in the market a little bit quicker. They tend to extend the reach of our services to where the patients are. And as these communities continue to grow, that’s a very important piece.”
HCA’s market share has also grown, with a target to reach 30% by 2030. And that goes back to each hospital’s ecosystem, which can be developed, Hazen said, by focusing on physician alignment and network integration.
“We need to be very intentional about building our medical staff and developing capabilities,” he said.
Ambulatory surgery centers will likely play a key role in the formation of an integrated network of hospital networks.
In February, Surgery Ventures launched the Silicon Valley Surgery Center in Campbell, California, established through a joint venture with over 50 physicians, after disclosing its acquisition of a majority stake in two Texas ASCs during the fall of 2023.
The company oversees the daily operations of each ASC. Surgery Ventures currently operates and co-owns more than 150 surgery centers across 16 states.
Lastly, Hazen said the potential of artificial intelligence (AI) and data analytics will improve patient outcomes, reduce administrative costs and streamline operations across its network.
“We still have opportunities where patients actually start somewhere in our system, and we don’t get their business downstream for whatever reason,” he said. “There are opportunities for us to use technology to navigate patients a little bit differently and help keep them in our system.”
