(Mark One)
|
||
þ
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the quarterly period ended September 30, 2009 | ||
or
|
||
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the transition period from to |
Delaware | 75-2497104 | |
(State or other jurisdiction
of
incorporation or organization) |
(I.R.S. Employer
Identification No.) |
One Park Plaza
Nashville, Tennessee (Address of principal executive offices) |
37203
(Zip Code) |
Large accelerated filer o | Accelerated filer o | Non-accelerated filer þ | Smaller reporting company o |
Class of Common Stock
|
Outstanding at October 31, 2009
|
|
Voting common stock, $.01 par value
|
94,636,900 shares |
Page of
|
||||||||
Form 10-Q | ||||||||
Part I. | Financial Information | |||||||
Item 1. | Financial Statements (Unaudited): | |||||||
Condensed Consolidated Income Statements for the quarters and nine months ended September 30, 2009 and 2008 | 3 | |||||||
Condensed Consolidated Balance Sheets September 30, 2009 and December 31, 2008 | 4 | |||||||
Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2009 and 2008 | 5 | |||||||
Notes to Condensed Consolidated Financial Statements | 6 | |||||||
Item 2. | Managements Discussion and Analysis of Financial Condition and Results of Operations | 25 | ||||||
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 40 | ||||||
Item 4. | Controls and Procedures | 40 | ||||||
Part II. | Other Information | |||||||
Item 1. | Legal Proceedings | 40 | ||||||
Item 1A. | Risk Factors | 41 | ||||||
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 41 | ||||||
Item 4. | Submission of Matters to a Vote of Security Holders | 42 | ||||||
Item 6. | Exhibits | 42 | ||||||
Signatures | 43 | |||||||
EX-10.1 | ||||||||
EX-10.2 | ||||||||
EX-31.1 | ||||||||
EX-31.2 | ||||||||
EX-32 |
2
16
29
37
CONDENSED CONSOLIDATED INCOME
STATEMENTS
FOR THE QUARTERS AND NINE MONTHS ENDED
SEPTEMBER 30, 2009 AND 2008
Unaudited
(Dollars in millions)
Quarter
Nine Months
2009
2008
2009
2008
$
7,533
$
7,002
$
22,447
$
21,109
3,013
2,883
8,880
8,563
1,206
1,141
3,627
3,463
1,184
1,147
3,410
3,396
910
819
2,583
2,520
(53
)
(41
)
(182
)
(170
)
354
350
1,067
1,062
510
497
1,487
1,521
(50
)
8
(90
)
3
44
16
53
7,127
6,790
20,896
20,318
406
212
1,551
791
132
76
480
233
274
136
1,071
558
78
50
233
161
$
196
$
86
$
838
$
397
3
Table of Contents
4
Table of Contents
CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30,
2009 AND 2008
Unaudited
(Dollars in millions)
2009
2008
$
1,071
$
558
(2,136
)
(2,420
)
2,583
2,520
1,067
1,062
(485
)
(379
)
8
(90
)
16
53
60
59
58
21
25
52
27
2,315
1,415
(915
)
(1,115
)
(42
)
(76
)
39
185
113
30
(2
)
4
(807
)
(972
)
2,979
4
(1,125
)
530
(3,050
)
(775
)
(254
)
(141
)
(68
)
(12
)
(10
)
(1,530
)
(392
)
(22
)
51
465
393
$
443
$
444
$
1,154
$
1,380
$
965
$
612
5
Table of Contents
NOTE 1
INTERIM
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
6
Table of Contents
NOTE 1
INTERIM
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(continued)
NOTE 2
INCOME
TAXES
7
Table of Contents
NOTE 3
INVESTMENTS
OF INSURANCE SUBSIDIARY
September 30, 2009
Unrealized
Amortized
Amounts
Fair
Cost
Gains
Losses
Value
$
713
$
36
$
(2
)
$
747
479
(6
)
473
45
(1
)
44
254
254
1,491
36
(9
)
1,518
5
(2
)
3
3
1
4
8
1
(2
)
7
$
1,499
$
37
$
(11
)
1,525
(154
)
$
1,371
December 31, 2008
Unrealized
Amortized
Amounts
Fair
Cost
Gains
Losses
Value
$
808
$
20
$
(23
)
$
805
576
(40
)
536
51
1
(5
)
47
226
226
1,661
21
(68
)
1,614
6
(1
)
5
3
3
9
(1
)
8
$
1,670
$
21
$
(69
)
1,622
(200
)
$
1,422
8
Table of Contents
NOTE 3
INVESTMENTS
OF INSURANCE SUBSIDIARY (continued)
Amortized
Fair
Cost
Value
$
313
$
313
296
311
212
227
146
150
967
1,001
479
473
45
44
$
1,491
$
1,518
NOTE 4
LONG-TERM
DEBT
September 30,
December 31,
2009
2008
$
925
$
2,000
50
9,032
12,002
2,681
352
406
12,990
14,458
4,500
4,200
1,578
1,500
6,078
5,700
6,846
6,831
25,914
26,989
635
404
$
25,279
$
26,585
9
Table of Contents
NOTE 4
LONG-TERM
DEBT (continued)
NOTE 5
FINANCIAL
INSTRUMENTS
Notional
Fair
Amount
Termination Date
Value
$
500
March 2011
$
(15
)
8,000
November 2011
(582
)
2,000
December 2016
(26
)
10
Table of Contents
NOTE 5
FINANCIAL
INSTRUMENTS (continued)
Notional
Fair
Amount
Termination Date
Value
411 Euro
December 2011
$
92
Notional
Fair
Amount
Termination Date
Value
100 GBP
November 2010
$
(15
)
Location of Loss
Amount of Loss
Amount of Loss (Gain)
Reclassified from
Reclassified from
Recognized in OCI on
Accumulated OCI
Accumulated OCI
Derivatives, Net of Tax
into Operations
into Operations
$
139
Interest expense
$
242
(7
)
Interest expense
$
132
$
242
Location of Gain
Amount of Gain
Recognized in
Recognized in
Operations on
Operations on
Derivatives
Derivatives
Other operating expense
$
(9
)
NOTE 6
ASSETS
AND LIABILITIES MEASURED AT FAIR VALUE
11
Table of Contents
NOTE 6
ASSETS
AND LIABILITIES MEASURED AT FAIR VALUE (continued)
12
Table of Contents
NOTE 6
ASSETS
AND LIABILITIES MEASURED AT FAIR VALUE (continued)
Fair Value Measurements Using
Quoted Prices in
Active Markets for
Identical Assets
Significant Other
Significant
and Liabilities
Observable Inputs
Unobservable Inputs
Fair Value
(Level 1)
(Level 2)
(Level 3)
$
1,525
$
256
$
794
$
475
(154
)
(154
)
1,371
102
794
475
92
92
623
623
15
15
Investments
Interest
of Insurance
Cross Currency
Rate
Subsidiary
Swaps
Swaps
$
538
$
97
$
(26
)
$
(657
)
9
242
35
11
(220
)
(98
)
(14
)
12
$
475
$
92
$
(15
)
$
(623
)
NOTE 7
CONTINGENCIES
13
Table of Contents
NOTE 7
CONTINGENCIES (continued)
NOTE 8
COMPREHENSIVE
INCOME AND CAPITAL STRUCTURE
Quarter
Nine Months
2009
2008
2009
2008
$
196
$
86
$
838
$
397
(31
)
(23
)
23
5
32
(8
)
47
(19
)
(10
)
(24
)
22
(24
)
2
7
(1
)
$
189
$
31
$
937
$
358
September 30,
December 31,
2009
2008
$
(417
)
$
(440
)
17
(30
)
(6
)
(28
)
(99
)
(106
)
$
(505
)
$
(604
)
Equity (Deficit) Attributable to HCA Inc.
Capital in
Accumulated
Equity
Common Stock
Excess of
Other
Attributable to
Shares
Par
Par
Comprehensive
Retained
Noncontrolling
(000)
Value
Value
Loss
Deficit
Interests
Total
94,367
$
1
$
165
$
(604
)
$
(9,817
)
$
995
$
(9,260
)
838
233
1,071
99
99
(254
)
(254
)
248
28
28
11
16
27
94,615
$
1
$
204
$
(505
)
$
(8,979
)
$
990
$
(8,289
)
14
Table of Contents
NOTE 9
SEGMENT
AND GEOGRAPHIC INFORMATION
Quarter
Nine Months
2009
2008
2009
2008
$
1,823
$
1,663
$
5,431
$
5,007
2,191
2,059
6,647
6,382
3,291
3,037
9,720
8,976
228
243
649
744
$
7,533
$
7,002
$
22,447
$
21,109
$
$
$
(2
)
$
(1
)
(1
)
(1
)
(2
)
(2
)
(53
)
(42
)
(179
)
(168
)
1
2
1
1
$
(53
)
$
(41
)
$
(182
)
$
(170
)
$
328
$
240
$
1,023
$
791
312
277
1,085
931
666
541
2,111
1,661
(
33
)
(5
)
(90
)
(46
)
$
1,273
$
1,053
$
4,129
$
3,337
15
Table of Contents
NOTE 9
SEGMENT
AND GEOGRAPHIC INFORMATION (continued)
Quarter
Nine Months
2009
2008
2009
2008
$
88
$
88
$
264
$
270
91
87
274
267
144
137
434
413
31
38
95
112
$
354
$
350
$
1,067
$
1,062
$
1,273
$
1,053
$
4,129
$
3,337
354
350
1,067
1,062
510
497
1,487
1,521
(50
)
8
(90
)
3
44
16
53
$
406
$
212
$
1,551
$
791
NOTE 10
ACQUISITIONS,
DISPOSITIONS AND IMPAIRMENT OF LONG-LIVED ASSETS
Table of Contents
NOTE 11
SUPPLEMENTAL
CONDENSED CONSOLIDATING FINANCIAL INFORMATION
CONDENSED CONSOLIDATING INCOME STATEMENT
FOR THE QUARTER ENDED SEPTEMBER 30, 2009
(Dollars in millions)
Subsidiary
Parent
Subsidiary
Non-
Condensed
Issuer
Guarantors
Guarantors
Eliminations
Consolidated
$
$
4,387
$
3,146
$
$
7,533
1,796
1,217
3,013
701
505
1,206
1
634
549
1,184
577
333
910
(560
)
(19
)
(34
)
560
(53
)
196
158
354
608
(83
)
(15
)
510
2
1
3
(116
)
116
49
3,688
2,830
560
7,127
(49
)
699
316
(560
)
406
(245
)
273
104
132
196
426
212
(560
)
274
13
65
78
$
196
$
413
$
147
$
(560
)
$
196
17
Table of Contents
NOTE 11
SUPPLEMENTAL
CONDENSED CONSOLIDATING FINANCIAL
INFORMATION (continued)
CONDENSED CONSOLIDATING INCOME STATEMENT
FOR THE QUARTER ENDED SEPTEMBER 30, 2008
(Dollars in millions)
Subsidiary
Parent
Subsidiary
Non-
Condensed
Issuer
Guarantors
Guarantors
Eliminations
Consolidated
$
$
4,032
$
2,970
$
$
7,002
1,722
1,161
2,883
657
484
1,141
(3
)
635
515
1,147
471
348
819
(432
)
(14
)
(27
)
432
(41
)
190
160
350
541
(23
)
(21
)
497
(8
)
(42
)
(50
)
44
44
(109
)
109
106
3,521
2,731
432
6,790
(106
)
511
239
(432
)
212
(192
)
196
72
76
86
315
167
(432
)
136
13
37
50
$
86
$
302
$
130
$
(432
)
$
86
18
Table of Contents
NOTE 11
SUPPLEMENTAL
CONDENSED CONSOLIDATING FINANCIAL
INFORMATION (continued)
CONDENSED CONSOLIDATING INCOME STATEMENT
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2009
(Dollars in millions)
Subsidiary
Parent
Subsidiary
Non-
Condensed
Issuer
Guarantors
Guarantors
Eliminations
Consolidated
$
$
13,200
$
9,247
$
$
22,447
5,311
3,569
8,880
2,134
1,493
3,627
13
1,870
1,527
3,410
1,631
952
2,583
(1,939
)
(67
)
(115
)
1,939
(182
)
592
475
1,067
1,733
(219
)
(27
)
1,487
6
2
8
15
1
16
(347
)
347
(193
)
10,926
8,224
1,939
20,896
193
2,274
1,023
(1,939
)
1,551
(645
)
816
309
480
838
1,458
714
(1,939
)
1,071
39
194
233
$
838
$
1,419
$
520
$
(1,939
)
$
838
19
Table of Contents
NOTE 11
SUPPLEMENTAL
CONDENSED CONSOLIDATING FINANCIAL
INFORMATION (continued)
CONDENSED CONSOLIDATING INCOME STATEMENT
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2008
(Dollars in millions)
Subsidiary
Parent
Subsidiary
Non-
Condensed
Issuer
Guarantors
Guarantors
Eliminations
Consolidated
$
$
12,229
$
8,880
$
$
21,109
5,128
3,435
8,563
1,999
1,464
3,463
(1
)
1,846
1,551
3,396
1,527
993
2,520
(1,420
)
(63
)
(107
)
1,420
(170
)
579
483
1,062
1,624
(42
)
(61
)
1,521
(90
)
(90
)
53
53
(329
)
329
203
10,645
8,050
1,420
20,318
(203
)
1,584
830
(1,420
)
791
(600
)
571
262
233
397
1,013
568
(1,420
)
558
39
122
161
$
397
$
974
$
446
$
(1,420
)
$
397
20
Table of Contents
NOTE 11
SUPPLEMENTAL
CONDENSED CONSOLIDATING FINANCIAL
INFORMATION (continued)
CONDENSED CONSOLIDATING BALANCE SHEET
SEPTEMBER 30, 2009
(Dollars in millions)
Subsidiary
Parent
Subsidiary
Non-
Condensed
Issuer
Guarantors
Guarantors
Eliminations
Consolidated
$
$
108
$
335
$
$
443
2,046
1,453
3,499
453
292
745
1,099
1,099
45
180
290
515
1,144
2,787
2,370
6,301
7,010
4,341
11,351
1,371
1,371
240
615
855
1,659
937
2,596
436
436
21,229
(21,229
)
1,082
20
108
1,210
$
23,891
$
11,716
$
9,742
$
(21,229
)
$
24,120
$
$
738
$
461
$
$
1,199
607
347
954
392
341
583
1,316
609
4
22
635
1,001
1,690
1,413
4,104
24,853
96
330
25,279
5,910
(9,770
)
3,860
1,097
1,097
1,259
374
149
1,782
33,023
(7,610
)
6,849
32,262
147
147
(9,279
)
19,207
2,022
(21,229
)
(9,279
)
119
871
990
(9,279
)
19,326
2,893
(21,229
)
(8,289
)
$
23,891
$
11,716
$
9,742
$
(21,229
)
$
24,120
21
Table of Contents
NOTE 11
SUPPLEMENTAL
CONDENSED CONSOLIDATING FINANCIAL
INFORMATION (continued)
CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2008
(Dollars in millions)
Subsidiary
Parent
Subsidiary
Non-
Condensed
Issuer
Guarantors
Guarantors
Eliminations
Consolidated
$
$
134
$
331
$
$
465
2,214
1,566
3,780
455
282
737
914
914
140
265
405
914
2,943
2,444
6,301
7,122
4,407
11,529
1,422
1,422
243
599
842
1,643
937
2,580
458
458
19,290
(19,290
)
1,050
31
67
1,148
$
21,712
$
11,982
$
9,876
$
(19,290
)
$
24,280
$
$
881
$
489
$
$
1,370
549
305
854
435
284
563
1,282
355
49
404
790
1,714
1,406
3,910
26,089
99
397
26,585
3,663
(8,136
)
4,473
1,108
1,108
1,270
379
133
1,782
31,812
(5,944
)
7,517
33,385
155
155
(10,255
)
17,788
1,502
(19,290
)
(10,255
)
138
857
995
(10,255
)
17,926
2,359
(19,290
)
(9,260
)
$
21,712
$
11,982
$
9,876
$
(19,290
)
$
24,280
22
Table of Contents
NOTE 11
SUPPLEMENTAL
CONDENSED CONSOLIDATING FINANCIAL
INFORMATION (continued)
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2009
(Dollars in millions)
Subsidiary
Parent
Subsidiary
Non-
Condensed
Issuer
Guarantors
Guarantors
Eliminations
Consolidated
$
838
$
1,458
$
714
$
(1,939
)
$
1,071
201
(1,475
)
(862
)
(2,136
)
1,631
952
2,583
592
475
1,067
(485
)
(485
)
6
2
8
15
1
16
60
60
58
58
21
21
(1,939
)
1,939
42
5
5
52
(1,204
)
2,232
1,287
2,315
(522
)
(393
)
(915
)
(38
)
(4
)
(42
)
18
21
39
9
104
113
(18
)
16
(2
)
(551
)
(256
)
(807
)
2,979
2,979
(1,125
)
(1,125
)
(2,960
)
(6
)
(84
)
(3,050
)
(58
)
(196
)
(254
)
2,397
(1,643
)
(754
)
(68
)
(68
)
(19
)
7
(12
)
1,204
(1,707
)
(1,027
)
(1,530
)
(26
)
4
(22
)
134
331
465
$
$
108
$
335
$
$
443
23
Table of Contents
NOTE 11
SUPPLEMENTAL
CONDENSED CONSOLIDATING FINANCIAL
INFORMATION (continued)
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2008
(Dollars in millions)
Subsidiary
Parent
Subsidiary
Non-
Condensed
Issuer
Guarantors
Guarantors
Eliminations
Consolidated
$
397
$
1,013
$
568
$
(1,420
)
$
558
100
(1,627
)
(893
)
(2,420
)
1,527
993
2,520
579
483
1,062
(379
)
(379
)
(90
)
(90
)
53
53
59
59
25
25
(1,420
)
1,420
6
18
3
27
(1,212
)
1,510
1,117
1,415
(579
)
(536
)
(1,115
)
(25
)
(51
)
(76
)
20
165
185
(13
)
43
30
(2
)
6
4
(599
)
(373
)
(972
)
4
4
530
530
(699
)
(3
)
(73
)
(775
)
(20
)
(121
)
(141
)
1,382
(934
)
(448
)
(1
)
(9
)
(10
)
1,212
(957
)
(647
)
(392
)
(46
)
97
51
165
228
393
$
$
119
$
325
$
$
444
24
Table of Contents
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
25
Table of Contents
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
26
Table of Contents
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
Quarter
Nine Months
2009
2008
2009
2008
32
%
33
%
34
%
35
%
10
9
10
9
9
8
9
8
8
7
7
7
34
36
33
35
7
7
7
6
100
%
100
%
100
%
100
%
Quarter
Nine Months
2009
2008
2009
2008
29
%
30
%
31
%
31
%
8
8
8
8
8
8
8
7
4
4
4
3
45
45
44
45
6
5
5
6
100
%
100
%
100
%
100
%
27
Table of Contents
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
Quarter
2009
2008
Amount
Ratio
Amount
Ratio
$
7,533
100.0
$
7,002
100.0
3,013
40.0
2,883
41.2
1,206
16.0
1,141
16.3
1,184
15.7
1,147
16.4
910
12.1
819
11.7
(53
)
(0.7
)
(41
)
(0.6
)
354
4.7
350
5.0
510
6.8
497
7.1
(50
)
(0.7
)
3
44
0.6
7,127
94.6
6,790
97.0
406
5.4
212
3.0
132
1.8
76
1.1
274
3.6
136
1.9
78
1.0
50
0.7
$
196
2.6
$
86
1.2
7.6
%
6.6
%
91.5
(44.7
)
126.0
(71.1
)
2.7
(1.1
)
4.7
0.7
2.7
5.9
7.7
7.7
2.7
0.4
4.8
1.9
2.8
5.7
28
Table of Contents
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
Nine Months
2009
2008
Amount
Ratio
Amount
Ratio
$
22,447
100.0
$
21,109
100.0
8,880
39.6
8,563
40.6
3,627
16.2
3,463
16.4
3,410
15.1
3,396
16.1
2,583
11.5
2,520
11.9
(182
)
(0.8
)
(170
)
(0.8
)
1,067
4.8
1,062
5.0
1,487
6.6
1,521
7.2
8
(90
)
(0.4
)
16
0.1
53
0.3
20,896
93.1
20,318
96.3
1,551
6.9
791
3.7
480
2.1
233
1.1
1,071
4.8
558
2.6
233
1.1
161
0.7
$
838
3.7
$
397
1.9
6.3
%
5.7
%
96.1
(21.0
)
110.9
(33.3
)
0.8
(0.6
)
3.3
0.5
2.9
5.1
6.7
7.0
1.2
0.9
3.8
1.7
2.8
5.2
(a)
Represents the total number of patients admitted to our
hospitals and is used by management and certain investors as a
general measure of inpatient volume.
(b)
Equivalent admissions are used by management and certain
investors as a general measure of combined inpatient and
outpatient volume. Equivalent admissions are computed by
multiplying admissions (inpatient volume) by the sum of gross
inpatient revenues and gross outpatient revenues and then
dividing the resulting amount by gross inpatient revenues. The
equivalent admissions computation equates outpatient
revenues to the volume measure (admissions) used to measure
inpatient volume, resulting in a general measure of combined
inpatient and outpatient volume.
(c)
Same facility information excludes the operations of hospitals
and their related facilities which were either acquired or
divested during the current and prior period.
Table of Contents
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
30
Table of Contents
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
31
Table of Contents
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
32
Table of Contents
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
33
Table of Contents
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
34
Table of Contents
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
35
Table of Contents
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
2009
2008
155
161
155
161
155
158
158
97
101
97
99
97
99
97
38,763
38,375
38,793
38,448
38,829
38,386
38,504
38,811
38,406
38,817
38,419
38,829
38,390
38,474
38,422
21,701
22,248
20,577
20,743
20,087
19,932
20,273
20,795
396,200
401,700
387,400
382,600
387,600
377,400
380,100
1,541,800
36
Table of Contents
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
2009
2008
610,200
601,300
609,900
587,600
615,100
587,400
587,300
2,363,600
4.9
5.0
4.8
4.9
4.8
4.9
4.9
4.9
1,359,700
1,368,800
1,398,000
1,297,600
1,441,200
1,303,100
1,276,900
5,246,400
194,400
196,900
200,200
202,100
199,100
196,500
201,900
797,400
122,600
125,400
124,400
125,000
125,300
121,400
121,300
493,100
Table of Contents
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
2009
2008
47
53
45
51
43
49
48
49
$
28,742
$
25,804
28,500
25,065
28,340
24,783
27,191
102,843
38
%
36
%
39
%
38
%
38
%
39
%
38
%
37
%
8
8
8
8
8
8
8
8
8
8
8
8
8
8
2,367
2,337
2,369
2,337
2,369
2,367
2,367
38
Table of Contents
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
% of Accounts Receivable
Under 91 Days
91 180 Days
Over 180 Days
11
%
1
%
1
%
15
3
3
19
10
37
45
%
14
%
41
%
(a)
Licensed beds are those beds for which a facility has been
granted approval to operate from the applicable state licensing
agency.
(b)
Weighted average licensed beds represents the average number of
licensed beds, weighted based on periods owned.
(c)
Represents the average number of patients in our hospital beds
each day.
(d)
Represents the total number of patients admitted to our
hospitals and is used by management and certain investors as a
general measure of inpatient volume.
(e)
Equivalent admissions are used by management and certain
investors as a general measure of combined inpatient and
outpatient volume. Equivalent admissions are computed by
multiplying admissions (inpatient volume) by the sum of gross
inpatient revenues and gross outpatient revenues and then
dividing the resulting amount by gross inpatient revenues. The
equivalent admissions computation equates outpatient
revenues to the volume measure (admissions) used to measure
inpatient volume resulting in a general measure of combined
inpatient and outpatient volume.
(f)
Represents the average number of days admitted patients stay in
our hospitals.
(g)
Represents the number of patients treated in our emergency rooms.
(h)
Represents the number of surgeries performed on patients who
were not admitted to our hospitals. Pain management and
endoscopy procedures are not included in outpatient surgeries.
(i)
Represents the number of surgeries performed on patients who
have been admitted to our hospitals. Pain management and
endoscopy procedures are not included in inpatient surgeries.
(j)
Days in accounts receivable are calculated by dividing the
revenues for the period by the days in the period (revenues per
day). Accounts receivable, net of allowance for doubtful
accounts, at the end of the period is then divided by the
revenues per day.
(k)
Gross patient revenues are based upon our standard charge
listing. Gross charges/revenues typically do not reflect what
our hospital facilities are paid. Gross charges/revenues are
reduced by contractual adjustments, discounts and charity care
to determine reported revenues.
(l)
Represents the percentage of patient revenues related to
patients who are not admitted to our hospitals.
(m)
The nonconsolidating facilities include facilities operated
through 50/50 joint ventures which we do not control and are
accounted for using the equity method of accounting.
39
Table of Contents
ITEM 3.
QUANTITATIVE
AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
ITEM 4.
CONTROLS
AND PROCEDURES
Item 1:
Legal
Proceedings
40
Table of Contents
Item 1A:
Risk
Factors
Item 2:
Unregistered
Sales of Equity Securities and Use of Proceeds
Approximate
Total Number
Dollar Value of
of Shares
Shares That
Purchased as
May Yet Be
Part of
Purchased
Publicly
Under Publicly
Total Number
Announced
Announced
of Shares
Average Price
Plans or
Plans or
Purchased
Paid per Share
Programs
Programs
$
4,205
$
63.15
5,088
$
71.68
9,293
$
67.82
$
41
Table of Contents
Item 4:
Submissions
of Matters to a Vote of Security Holders
Item 6:
Exhibits
Form of Option Agreement (2009), approved August 27, 2009.
Form of 2x Time Option Agreement.
Certification of Chief Executive Officer Pursuant to Section 302
of the Sarbanes-Oxley Act of 2002.
Certification of Chief Financial Officer Pursuant to Section 302
of the Sarbanes-Oxley Act of 2002.
Certification Pursuant to 18 U.S.C. Section 1350, as
Adopted Pursuant to Section 906 of Sarbanes-Oxley Act of 2002.
42
Table of Contents
By:
43
2
3
4
5
6
7
8
9
10
11
HCA INC.
|
||||
By: | ||||
Its: | ||||
12
Option Grants
:
|
||||
|
||||
Aggregate number of shares of Common Stock
for which the
Time Option
granted hereunder is
exercisable (100% of number of shares):
|
||||
|
||||
Aggregate number of shares of Common Stock
for which the
EBITDA Performance Option
granted hereunder is exercisable (100% of the
number of shares):
|
||||
|
||||
Exercise Price of all options:
|
$ per share | |||
|
||||
Grant Date
:
|
||||
|
||||
|
||||
|
||||
|
OPTIONEE:
|
|||
|
||||
|
||||
|
||||
|
||||
|
Address
|
|||
|
||||
|
2
3
4
Vesting Date | Percentage of Option Exercisable | |||
Grant Date
|
40 | % | ||
November 17, 2009
|
20 | % | ||
November 17, 2010
|
20 | % | ||
November 17, 2011
|
20 | % | ||
Total:
|
100 | % |
5
6
7
8
9
10
11
HCA INC.
|
||||
By: | ||||
Title: | ||||
Option Grants
:
|
||||
|
||||
Aggregate number of shares of Common Stock
for which the
Option
granted hereunder is
exercisable (100% of number of shares):
|
||||
|
||||
Exercise Price of all options:
|
$102.00 per share | |||
|
||||
Grant Date
:
|
||||
|
||||
Percentage of Option Vested
and Exercisable on Grant Date:
|
||||
|
||||
|
||||
|
||||
|
OPTIONEE:
|
|||
|
||||
|
|
|||
|
||||
|
Address
|
|||
|
||||
|
|
|||
|
||||
|
|
By: |
/s/
Richard M. Bracken
|
By: |
/s/
R.
Milton Johnson
|
By: |
/s/
Richard
M. Bracken
|
By: |
/s/
R.
Milton Johnson
|