(Mark One) | ||
þ
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the quarterly period ended June 30, 2011 | ||
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 | 27-3865930 | |
(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 July 31, 2011 | |
Voting common stock, $.01 par value | 517,179,600 shares |
2
9
19
36
46
CONDENSED CONSOLIDATED INCOME
STATEMENTS
FOR THE QUARTERS AND SIX MONTHS ENDED JUNE 30, 2011 AND 2010
Unaudited
Quarter
Six Months
2011
2010
2011
2010
$
8,063
$
7,756
$
16,118
$
15,300
3,320
3,076
6,615
6,148
1,295
1,251
2,570
2,451
1,326
1,226
2,648
2,428
775
788
1,424
1,352
(73
)
(75
)
(149
)
(143
)
358
355
716
710
520
530
1,053
1,046
1
91
109
75
75
181
7,596
7,242
15,134
14,101
467
514
984
1,199
147
136
330
345
320
378
654
854
91
85
185
173
$
229
$
293
$
469
$
681
$
0.44
$
0.69
$
0.98
$
1.60
$
0.43
$
0.67
$
0.94
$
1.56
516,448
426,329
480,525
426,340
538,557
437,104
500,463
436,392
3
Table of Contents
June 30,
December 31,
2011
2010
$
539
$
411
3,946
3,832
887
897
894
931
625
848
6,891
6,919
26,338
25,641
(14,754
)
(14,289
)
11,584
11,352
515
642
843
869
2,719
2,693
332
374
993
1,003
$
23,877
$
23,852
LIABILITIES AND STOCKHOLDERS DEFICIT
$
1,297
$
1,537
1,009
895
1,283
1,245
689
592
4,278
4,269
24,631
27,633
987
995
1,515
1,608
141
5
4
3,072
386
(339
)
(428
)
(11,419
)
(11,888
)
(8,681
)
(11,926
)
1,147
1,132
(7,534
)
(10,794
)
$
23,877
$
23,852
4
Table of Contents
CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2011 AND 2010
Unaudited
(Dollars in millions)
2011
2010
$
654
$
854
(1,576
)
(1,698
)
1,424
1,352
716
710
317
(111
)
1
109
75
39
40
16
16
23
1,666
1,295
(776
)
(536
)
(168
)
(31
)
54
25
76
502
2
(11
)
(812
)
(51
)
1,387
(1,524
)
1,329
(1,508
)
(1,529
)
(185
)
(176
)
(30
)
(2,251
)
(12
)
(25
)
2,506
49
56
(22
)
3
(726
)
(1,206
)
128
38
411
312
$
539
$
350
$
1,043
$
973
$
(36
)
$
400
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
EARNINGS
PER SHARE
Quarter
Six Months
2011
2010
2011
2010
$
229
$
293
$
469
$
681
516,448
426,329
480,525
426,340
22,109
10,775
19,938
10,052
538,557
437,104
500,463
436,392
$
0.44
$
0.69
$
0.98
$
1.60
$
0.43
$
0.67
$
0.94
$
1.56
NOTE 4
INVESTMENTS
OF INSURANCE SUBSIDIARY
June 30, 2011
Unrealized
Amortized
Amounts
Fair
Cost
Gains
Losses
Value
$
305
$
12
$
(1
)
$
316
152
(3
)
149
23
23
229
229
709
12
(4
)
717
8
1
(1
)
8
$
717
$
13
$
(5
)
725
(210
)
$
515
8
Table of Contents
NOTE 4
INVESTMENTS
OF INSURANCE SUBSIDIARY (continued)
December 31, 2010
Unrealized
Amortized
Amounts
Fair
Cost
Gains
Losses
Value
$
312
$
12
$
(1
)
$
323
251
(1
)
250
26
1
(1
)
26
135
135
724
13
(3
)
734
8
1
(1
)
8
$
732
$
14
$
(4
)
742
(100
)
$
642
Amortized
Fair
Cost
Value
$
249
$
250
139
147
122
124
24
24
534
545
152
149
23
23
$
709
$
717
Table of Contents
NOTE 5
LONG-TERM
DEBT
June 30,
December 31,
2011
2010
$
1,080
$
1,875
729
7,541
7,530
4,078
4,075
304
322
13,003
14,531
3,396
4,501
1,578
1,578
4,974
6,079
7,343
7,615
25,320
28,225
689
592
$
24,631
$
27,633
NOTE 6
FINANCIAL
INSTRUMENTS
10
Table of Contents
NOTE 6
FINANCIAL
INSTRUMENTS (continued)
Notional
Fair
Amount
Maturity Date
Value
$
7,100
November 2011
$
(125
)
500
December 2014
2
3,000
December 2016
(195
)
1,000
December 2017
11
Notional
Fair
Amount
Maturity Date
Value
$
900
November 2011
$
(15
)
900
November 2011
2
Notional
Fair
Amount
Maturity Date
Value
351 Euro
December 2011
$
78
Location of Loss
Amount of Loss
Amount of Loss
Reclassified from
Reclassified from
Recognized in OCI on
Accumulated OCI
Accumulated OCI
Derivatives in Cash Flow Hedging Relationships
Derivatives, Net of Tax
into Operations
into Operations
$
49
Interest expense
$
186
11
Table of Contents
NOTE 6
FINANCIAL
INSTRUMENTS (continued)
Location of Gain
Amount of Gain
Recognized in
Recognized in
Operations on
Operations on
Derivatives Not Designated as Hedging Instruments
Derivatives
Derivatives
Other operating expenses
$
39
NOTE 7
ASSETS
AND LIABILITIES MEASURED AT FAIR VALUE
12
Table of Contents
NOTE 7
ASSETS
AND LIABILITIES MEASURED AT FAIR VALUE (continued)
13
Table of Contents
NOTE 7
ASSETS
AND LIABILITIES MEASURED AT FAIR VALUE (continued)
June 30, 2011
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)
$
316
$
$
316
$
149
149
23
23
229
229
717
229
339
149
8
2
4
2
725
231
343
151
(210
)
(210
)
$
515
$
21
$
343
$
151
$
78
$
$
78
$
$
320
$
$
320
$
14
Table of Contents
NOTE 7
ASSETS
AND LIABILITIES MEASURED AT FAIR VALUE (continued)
December 31, 2010
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)
$
323
$
$
323
$
250
250
26
26
135
135
734
135
349
250
8
2
5
1
742
137
354
251
(100
)
(100
)
$
642
$
37
$
354
$
251
$
39
$
$
39
$
$
426
$
$
426
$
$
251
(1
)
(99
)
$
151
15
Table of Contents
NOTE 8
CONTINGENCIES
NOTE 9
COMPREHENSIVE
INCOME AND CAPITAL STRUCTURE
Quarter
Six Months
2011
2010
2011
2010
$
229
$
293
$
469
$
681
2
(14
)
69
(26
)
(8
)
(1
)
(7
)
(6
)
14
(27
)
3
2
7
5
$
234
$
267
$
558
$
626
16
Table of Contents
NOTE 9
COMPREHENSIVE
INCOME AND CAPITAL STRUCTURE (continued)
June 30,
December 31,
2011
2010
$
(203
)
$
(272
)
5
6
(5
)
(19
)
(136
)
(143
)
$
(339
)
$
(428
)
Equity (Deficit) Attributable to HCA Holdings, 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
427,459
$
4
$
386
$
(428
)
$
(11,888
)
$
1,132
$
(10,794
)
469
185
654
89
89
87,719
1
2,505
2,506
(185
)
(185
)
1,916
18
18
141
141
22
15
37
517,094
$
5
$
3,072
$
(339
)
$
(11,419
)
$
1,147
$
(7,534
)
NOTE 10
SEGMENT
AND GEOGRAPHIC INFORMATION
17
Table of Contents
NOTE 10
SEGMENT
AND GEOGRAPHIC INFORMATION (continued)
Quarter
Six Months
2011
2010
2011
2010
$
3,448
$
3,292
$
6,903
$
6,495
2,445
2,384
4,880
4,722
1,885
1,836
3,764
3,600
285
244
571
483
$
8,063
$
7,756
$
16,118
$
15,300
$
(1
)
$
(1
)
$
(2
)
$
(2
)
(73
)
(74
)
(148
)
(140
)
(1
)
1
1
$
(73
)
$
(75
)
$
(149
)
$
(143
)
$
576
$
602
$
1,248
$
1,264
567
568
1,162
1,135
318
324
651
667
(41
)
(4
)
(51
)
(2
)
$
1,420
$
1,490
$
3,010
$
3,064
18
Table of Contents
NOTE 10
SEGMENT
AND GEOGRAPHIC INFORMATION (continued)
Quarter
Six Months
2011
2010
2011
2010
$
127
$
128
$
252
$
256
110
106
221
213
89
90
177
178
32
31
66
63
$
358
$
355
$
716
$
710
$
1,420
$
1,490
$
3,010
$
3,064
358
355
716
710
520
530
1,053
1,046
1
91
109
75
75
181
$
467
$
514
$
984
$
1,199
NOTE 11
ACQUISITIONS,
DISPOSITIONS AND IMPAIRMENTS OF LONG-LIVED ASSETS
NOTE 12
SUPPLEMENTAL
CONDENSED CONSOLIDATING FINANCIAL INFORMATION
Table of Contents
NOTE 12
SUPPLEMENTAL
CONDENSED CONSOLIDATING FINANCIAL INFORMATION
(continued)
CONDENSED CONSOLIDATING INCOME STATEMENT
FOR THE QUARTER ENDED JUNE 30, 2011
(Dollars in millions)
HCA
Subsidiary
Holdings, Inc.
HCA Inc.
Subsidiary
Non-
Condensed
Issuer
Issuer
Guarantors
Guarantors
Eliminations
Consolidated
$
$
$
4,515
$
3,548
$
$
8,063
1,872
1,448
3,320
720
575
1,295
2
686
638
1,326
457
318
775
(246
)
(30
)
(43
)
246
(73
)
194
164
358
30
741
(153
)
(98
)
520
75
75
(129
)
129
(216
)
818
3,617
3,131
246
7,596
216
(818
)
898
417
(246
)
467
(13
)
(323
)
347
136
147
229
(495
)
551
281
(246
)
320
18
73
91
$
229
$
(495
)
$
533
$
208
$
(246
)
$
229
20
Table of Contents
NOTE 12
SUPPLEMENTAL
CONDENSED CONSOLIDATING FINANCIAL INFORMATION
(continued)
CONDENSED CONSOLIDATING INCOME STATEMENT
FOR THE QUARTER ENDED JUNE 30, 2010
(Dollars in millions)
Subsidiary
HCA Inc.
Subsidiary
Non-
Condensed
Issuer
Guarantors
Guarantors
Eliminations
Consolidated
$
$
4,479
$
3,277
$
$
7,756
1,809
1,267
3,076
724
527
1,251
1
665
560
1,226
499
289
788
(745
)
(28
)
(47
)
745
(75
)
197
158
355
668
(122
)
(16
)
530
38
53
91
(120
)
120
(76
)
3,662
2,911
745
7,242
76
817
366
(745
)
514
(217
)
259
94
136
293
558
272
(745
)
378
14
71
85
$
293
$
544
$
201
$
(745
)
$
293
21
Table of Contents
NOTE 12
SUPPLEMENTAL
CONDENSED CONSOLIDATING FINANCIAL INFORMATION
(continued)
CONDENSED CONSOLIDATING INCOME STATEMENT
FOR THE SIX MONTHS ENDED JUNE 30, 2011
(Dollars in millions)
HCA
Subsidiary
Holdings, Inc.
HCA Inc.
Subsidiary
Non-
Condensed
Issuer
Issuer
Guarantors
Guarantors
Eliminations
Consolidated
$
$
$
9,093
$
7,025
$
$
16,118
3,768
2,847
6,615
1,431
1,139
2,570
4
1,367
1,277
2,648
874
550
1,424
(504
)
(60
)
(89
)
504
(149
)
389
327
716
60
1,432
(316
)
(123
)
1,053
16
(15
)
1
75
75
181
181
(253
)
253
(444
)
1,692
7,216
6,166
504
15,134
444
(1,692
)
1,877
859
(504
)
984
(25
)
(698
)
762
291
330
469
(994
)
1,115
568
(504
)
654
31
154
185
$
469
$
(994
)
$
1,084
$
414
$
(504
)
$
469
22
Table of Contents
NOTE 12
SUPPLEMENTAL
CONDENSED CONSOLIDATING FINANCIAL INFORMATION
(continued)
CONDENSED CONSOLIDATING INCOME STATEMENT
FOR THE SIX MONTHS ENDED JUNE 30, 2010
(Dollars in millions)
Subsidiary
HCA Inc.
Subsidiary
Non-
Condensed
Issuer
Guarantors
Guarantors
Eliminations
Consolidated
$
$
8,853
$
6,447
$
$
15,300
3,635
2,513
6,148
1,414
1,037
2,451
3
1,303
1,122
2,428
857
495
1,352
(1,556
)
(55
)
(88
)
1,556
(143
)
392
318
710
1,316
(237
)
(33
)
1,046
53
56
109
(238
)
238
(237
)
7,124
5,658
1,556
14,101
237
1,729
789
(1,556
)
1,199
(444
)
572
217
345
681
1,157
572
(1,556
)
854
29
144
173
$
681
$
1,128
$
428
$
(1,556
)
$
681
23
Table of Contents
NOTE 12
SUPPLEMENTAL
CONDENSED CONSOLIDATING FINANCIAL INFORMATION
(continued)
CONDENSED CONSOLIDATING BALANCE SHEET
JUNE 30, 2011
(Dollars in millions)
HCA
Subsidiary
Holdings, Inc.
HCA Inc.
Subsidiary
Non-
Condensed
Issuer
Issuer
Guarantors
Guarantors
Eliminations
Consolidated
$
$
$
131
$
408
$
$
539
2,235
1,711
3,946
545
342
887
894
894
182
443
625
894
3,093
2,904
6,891
6,953
4,631
11,584
515
515
222
621
843
1,609
1,110
2,719
23
309
332
14,786
(14,786
)
668
92
29
204
993
$
16,371
$
401
$
11,906
$
9,985
$
(14,786
)
$
23,877
$
$
$
751
$
546
$
$
1,297
628
381
1,009
50
271
318
644
1,283
651
14
24
689
50
922
1,711
1,595
4,278
1,525
22,437
82
587
24,631
23,040
(11,785
)
(13,775
)
2,520
987
987
437
334
535
209
1,515
25,052
11,908
(11,447
)
5,898
31,411
(8,681
)
(11,507
)
23,251
3,042
(14,786
)
(8,681
)
102
1,045
1,147
(8,681
)
(11,507
)
23,353
4,087
(14,786
)
(7,534
)
$
16,371
$
401
$
11,906
$
9,985
$
(14,786
)
$
23,877
24
Table of Contents
NOTE 12
SUPPLEMENTAL
CONDENSED CONSOLIDATING FINANCIAL INFORMATION
(continued)
CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2010
(Dollars in millions)
HCA
Subsidiary
Holdings, Inc.
HCA Inc.
Subsidiary
Non-
Condensed
Issuer
Issuer
Guarantors
Guarantors
Eliminations
Consolidated
$
6
$
$
156
$
249
$
$
411
2,214
1,618
3,832
547
350
897
931
931
202
223
423
848
1,139
3,140
2,640
6,919
6,817
4,535
11,352
642
642
248
621
869
1,635
1,058
2,693
23
351
374
14,282
(14,282
)
776
39
21
167
1,003
$
16,220
$
390
$
11,861
$
9,663
$
(14,282
)
$
23,852
$
$
$
919
$
618
$
$
1,537
556
339
895
12
296
328
609
1,245
554
12
26
592
12
850
1,815
1,592
4,269
1,525
25,758
95
255
27,633
25,985
(16,130
)
(12,833
)
2,978
995
995
483
425
505
195
1,608
28,005
10,903
(10,418
)
6,015
34,505
141
141
(11,926
)
(10,513
)
22,167
2,628
(14,282
)
(11,926
)
112
1,020
1,132
(11,926
)
(10,513
)
22,279
3,648
(14,282
)
(10,794
)
$
16,220
$
390
$
11,861
$
9,663
$
(14,282
)
$
23,852
25
Table of Contents
NOTE 12
SUPPLEMENTAL
CONDENSED CONSOLIDATING FINANCIAL INFORMATION
(continued)
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2011
(Dollars in millions)
HCA
Subsidiary
Holdings, Inc.
HCA Inc.
Subsidiary
Non-
Condensed
Issuer
Issuer
Guarantors
Guarantors
Eliminations
Consolidated
$
469
$
(994
)
$
1,115
$
568
$
(504
)
$
654
4
(24
)
(916
)
(640
)
(1,576
)
874
550
1,424
389
327
716
317
317
15
(14
)
1
75
75
39
39
16
16
(504
)
504
6
(6
)
302
(898
)
1,477
785
1,666
(389
)
(387
)
(776
)
(136
)
(32
)
(168
)
1
53
54
24
52
76
2
2
(500
)
(312
)
(812
)
(1,524
)
(1,524
)
(1,456
)
(6
)
(46
)
(1,508
)
(41
)
(144
)
(185
)
(30
)
(30
)
(2,805
)
3,890
(955
)
(130
)
(12
)
(12
)
2,506
2,506
49
49
(28
)
6
(22
)
(308
)
898
(1,002
)
(314
)
(726
)
(6
)
(25
)
159
128
6
156
249
411
$
$
$
131
$
408
$
$
539
26
Table of Contents
NOTE 12
SUPPLEMENTAL
CONDENSED CONSOLIDATING FINANCIAL INFORMATION
(continued)
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2010
(Dollars in millions)
Subsidiary
HCA Inc.
Subsidiary
Non-
Condensed
Issuer
Guarantors
Guarantors
Eliminations
Consolidated
$
681
$
1,157
$
572
$
(1,556
)
$
854
31
(1,057
)
(672
)
(1,698
)
857
495
1,352
392
318
710
(111
)
(111
)
48
61
109
40
40
16
16
(1,556
)
1,556
23
23
(876
)
1,397
774
1,295
(225
)
(311
)
(536
)
(21
)
(10
)
(31
)
24
1
25
10
492
502
(1
)
(10
)
(11
)
(213
)
162
(51
)
1,387
1,387
1,329
1,329
(1,508
)
(11
)
(10
)
(1,529
)
(41
)
(135
)
(176
)
(2,251
)
(2,251
)
1,893
(1,119
)
(774
)
(25
)
(25
)
56
56
(5
)
8
3
876
(1,171
)
(911
)
(1,206
)
13
25
38
95
217
312
$
$
108
$
242
$
$
350
27
Table of Contents
NOTE 13
SUBSEQUENT
EVENTS
28
Table of Contents
Table of Contents
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
30
Table of Contents
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
Quarter
2011
Ratio
2010
Ratio
$
1,871
23.2
%
$
1,824
23.5
%
584
7.3
549
7.1
479
5.9
511
6.6
316
3.9
281
3.6
3,916
48.6
3,733
48.2
233
2.9
193
2.5
7,399
91.8
7,091
91.5
492
6.1
523
6.7
172
2.1
142
1.8
$
8,063
100.0
%
$
7,756
100.0
%
Six Months
2011
Ratio
2010
Ratio
$
3,871
24.0
%
$
3,675
24.0
%
1,196
7.4
1,099
7.2
987
6.1
989
6.5
635
3.9
578
3.8
7,772
48.2
7,445
48.7
466
2.9
382
2.5
14,927
92.5
14,168
92.7
882
5.5
870
5.7
309
2.0
262
1.6
$
16,118
100.0
%
$
15,300
100.0
%
31
Table of Contents
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
Quarter
Six Months
2011
Ratio
2010
Ratio
2011
Ratio
2010
Ratio
$
775
28
%
$
788
32
%
$
1,424
27
%
$
1,352
29
%
1,342
48
1,072
44
2,615
49
2,107
46
657
24
599
24
1,292
24
1,144
25
$
2,774
100
%
$
2,459
100
%
$
5,331
100
%
$
4,603
100
%
Quarter
Six Months
2011
2010
2011
2010
35
%
34
%
35
%
35
%
11
10
11
10
9
9
9
9
7
7
7
7
31
33
31
32
7
7
7
7
100
%
100
%
100
%
100
%
32
Table of Contents
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
Quarter
Six Months
2011
2010
2011
2010
31
%
31
%
32
%
32
%
9
9
9
9
9
9
9
9
4
4
4
4
44
43
44
43
3
4
2
3
100
%
100
%
100
%
100
%
33
Table of Contents
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
34
Table of Contents
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
Quarter
2011
2010
Amount
Ratio
Amount
Ratio
$
8,063
100.0
$
7,756
100.0
3,320
41.2
3,076
39.6
1,295
16.1
1,251
16.1
1,326
16.4
1,226
15.9
775
9.6
788
10.2
(73
)
(0.9
)
(75
)
(1.0
)
358
4.5
355
4.6
520
6.4
530
6.8
91
1.2
75
0.9
7,596
94.2
7,242
93.4
467
5.8
514
6.6
147
1.8
136
1.7
320
4.0
378
4.9
91
1.2
85
1.1
$
229
2.8
$
293
3.8
4.0
%
3.7
%
(9.2
)
(2.2
)
(21.5
)
3.4
3.2
(0.6
)
3.4
1.3
0.5
2.3
2.4
3.8
1.8
(0.3
)
1.9
1.6
0.5
2.2
35
Table of Contents
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
Six Months
2011
2010
Amount
Ratio
Amount
Ratio
$
16,118
100.0
$
15,300
100.0
6,615
41.0
6,148
40.2
2,570
15.9
2,451
16.0
2,648
16.5
2,428
15.9
1,424
8.8
1,352
8.8
(149
)
(0.9
)
(143
)
(0.9
)
716
4.5
710
4.7
1,053
6.5
1,046
6.8
1
109
0.7
75
0.5
181
1.1
15,134
93.9
14,101
92.2
984
6.1
1,199
7.8
330
2.0
345
2.2
654
4.1
854
5.6
185
1.2
173
1.1
$
469
2.9
$
681
4.5
5.3
%
2.6
%
(18.0
)
4.7
(31.1
)
6.0
2.6
0.1
3.6
1.1
1.7
1.5
4.1
2.7
1.7
0.3
2.6
1.3
1.5
1.3
(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)
Operating Measures on a Cash Revenues Basis
(Dollars in millions)
Quarter
2011
2010
Non-GAAP % of
GAAP % of
Non-GAAP % of
GAAP % of
Cash Revenues
Revenues
Cash Revenues
Revenues
Amount
Ratios(b)
Ratios(b)
Amount
Ratios(b)
Ratios(b)
$
8,063
100.0
$
7,756
100.0
775
788
7,288
100.0
6,968
100.0
3,320
45.5
41.2
3,076
44.1
39.6
1,295
17.8
16.1
1,251
17.9
16.1
1,326
18.2
16.4
1,226
17.7
15.9
4.0
%
3.7
%
4.6
5.3
0.5
2.3
1.1
4.0
Six Months
2011
2010
Non-GAAP % of
GAAP % of
Non-GAAP % of
GAAP % of
Cash Revenues
Revenues
Cash Revenues
Revenues
Amount
Ratios(b)
Ratios(b)
Amount
Ratios(b)
Ratios(b)
$
16,118
100.0
$
15,300
100.0
1,424
1,352
14,694
100.0
13,948
100.0
6,615
45.0
41.0
6,148
44.1
40.2
2,570
17.5
15.9
2,451
17.6
16.0
2,648
18.0
16.5
2,428
17.3
15.9
5.3
%
2.6
%
5.3
5.3
1.7
1.5
1.7
4.2
(a)
Cash revenues is defined as
reported revenues less the provision for doubtful accounts. We
use cash revenues as an analytical indicator for purposes of
assessing the effect of uninsured patient volumes, adjusted for
the effect of both the revenue deductions related to uninsured
accounts (charity care and uninsured discounts) and the
provision for doubtful accounts (which relates primarily to
uninsured accounts), on our revenues and certain operating
expenses, as a percentage of cash revenues. During the second
quarter and first six months of 2011, uninsured discounts
increased $270 million and $508 million, respectively,
charity care increased $58 million and $148 million,
respectively, and the provision for doubtful accounts declined
$13 million and increased $72 million, respectively,
compared to the same periods for 2010. Cash revenues is commonly
used as an analytical indicator within the health care industry.
Cash revenues should not be considered as a measure of financial
performance under generally accepted accounting principles
(GAAP). Because cash revenues is not a measurement
determined in accordance with GAAP and is thus susceptible to
varying calculations, cash revenues, as presented, may not be
comparable to other similarly titled measures of other health
care companies.
(b)
Salaries and benefits, supplies and
other operating expenses, as a percentage of cash revenues (a
non-GAAP financial measure), present the impact on these ratios
due to the adjustment of deducting the provision for doubtful
accounts from reported revenues and results in these ratios
being non-GAAP financial measures. We believe these non-GAAP
financial measures are useful to investors to provide
disclosures of our results of operations on the same basis as
that used by management. Management uses this information to
compare certain operating expense categories as a percentage of
cash revenues. Management finds this information useful to
evaluate certain expense category trends without the influence
of whether adjustments related to revenues for uninsured
accounts are recorded as revenue adjustments (charity care and
uninsured discounts) or operating expenses (provision for
doubtful accounts), and thus the expense category trends are
generally analyzed as a percentage of cash revenues. These
non-GAAP financial measures should not be considered
alternatives to GAAP financial measures. We believe this
supplemental information provides management and the users of
our financial statements with useful information for
period-to-period
comparisons. Investors are encouraged to use GAAP measures when
evaluating our overall financial performance.
37
Table of Contents
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
38
Table of Contents
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
39
Table of Contents
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
40
Table of Contents
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
41
Table of Contents
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
42
Table of Contents
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
43
Table of Contents
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
44
Table of Contents
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
2011
2010
156
154
157
154
154
156
98
98
98
98
96
97
39,075
38,719
39,472
38,636
38,636
38,827
39,061
38,687
39,356
38,607
38,645
38,680
38,655
22,002
21,696
20,764
20,418
19,848
20,155
20,523
406,900
398,900
397,500
385,200
383,800
386,500
1,554,400
638,400
615,500
638,900
617,900
617,700
617,300
2,468,400
45
Table of Contents
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
2011
2010
4.9
4.9
4.8
4.8
4.8
4.8
4.8
1,527,600
1,367,100
1,512,000
1,436,200
1,457,100
1,445,800
5,706,200
193,000
190,700
199,100
198,600
194,100
200,200
783,600
119,700
122,500
120,200
121,800
121,600
121,200
487,100
45
46
45
44
44
46
46
$
34,764
$
31,054
34,242
30,731
30,647
33,208
125,640
Table of Contents
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
2011
2010
38
%
36
%
39
%
38
%
38
%
38
%
38
%
7
8
7
8
8
8
9
8
13
8
8
9
2,259
2,369
2,259
2,369
2,369
2,369
47
Table of Contents
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
% of Accounts Receivable
Under 91 Days
91 180 Days
Over 180 Days
12
%
1
%
1
%
23
5
4
17
7
30
52
%
13
%
35
%
(a)
Licensed beds are those beds for which a facility has been
granted approval to operate from the applicable state licensing
agency.
(b)
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)
Revenues per day is calculated by dividing the revenues for the
period by the days in the period. Days revenues in accounts
receivable is then calculated as accounts receivable, net of
allowance for doubtful accounts, at the end of the period
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.
(n)
Accounts receivable aging data is based upon consolidated gross
accounts receivable of $7.901 billion (each 1% is
equivalent to approximately $79 million of gross accounts
receivable).
48
Table of Contents
ITEM 3.
QUANTITATIVE
AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
ITEM 4.
CONTROLS
AND PROCEDURES
Item 1:
Legal
Proceedings
49
Table of Contents
Item 1A:
Risk
Factors
50
Table of Contents
Item 5:
Other
Information
51
Table of Contents
Item 6:
Exhibits
Membership Interest Purchase Agreement by and between HealthONE,
D/B/A The Colorado Health Foundation, and HealthONE of Denver,
Inc., dated August 2, 2011. (Registrant agrees to furnish
supplementally a copy of any omitted schedule to the Securities
and Exchange Commission upon request).
First Amendment to 2006 Stock Incentive Plan for Key Employees
of HCA Holdings, Inc. and its Affiliates, as amended and
restated.*
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.
The following financial information from our quarterly report on
Form 10-Q
for the quarter ended June 30, 2011, filed with the SEC on
August 5, 2011, formatted in Extensible Business Reporting
Language (XBRL): (i) the condensed consolidated balance
sheets at June 30, 2011 and December 31, 2010,
(ii) the condensed consolidated income statements for the
quarters and six months ended June 30, 2011 and 2010,
(iii) the condensed consolidated statements of cash flows
for the six months ended June 30, 2011 and 2010, and
(iv) the notes to condensed consolidated financial
statements (tagged as blocks of text).(1)
(1)
The XBRL related information in Exhibit 101 to this
quarterly report on
Form 10-Q
shall not be deemed filed for purposes of
Section 18 of the Securities Exchange Act of 1934, as
amended, or otherwise subject to liability of that section and
shall not be incorporated by reference into any filing or other
document pursuant to the Securities Act of 1933, as amended,
except as shall be expressly set forth by specific reference in
such filing or document.
*
Management compensatory plan or arrangement.
52
Table of Contents
By:
53
Page | ||||
I. REDEMPTION, PURCHASE AND SALE OF THE LLC INTEREST
|
2 | |||
1.1 Partial Redemption of LLC Interest
|
2 | |||
1.2 Sale and Purchase of the LLC Interest
|
2 | |||
1.3 Purchase Price
|
2 | |||
1.4 LLC Distribution
|
2 | |||
II. CLOSING
|
3 | |||
2.1 Closing
|
3 | |||
2.2 Actions of Seller at Closing
|
3 | |||
2.3 Actions of Buyer at Closing
|
4 | |||
III. REPRESENTATIONS AND WARRANTIES OF SELLER
|
5 | |||
3.1 Corporate Capacity
|
5 | |||
3.2 Corporate Powers; Consents; Absence of Conflicts With Other Agreements
|
5 | |||
3.3 Binding Effect
|
6 | |||
3.4 Ownership of the LLC Interest
|
6 | |||
3.5 Action of Seller
|
6 | |||
3.6 Compliance with Agreements
|
6 | |||
3.7 Brokers and Finders
|
6 | |||
3.8 No Affiliates
|
6 | |||
IV. REPRESENTATIONS AND WARRANTIES OF BUYER
|
6 | |||
4.1 Corporate Capacity
|
7 | |||
4.2 Corporate Powers; Consents; Absence of Conflicts With Other Agreements
|
7 | |||
4.3 Binding Effect
|
7 | |||
4.4 Compliance with Agreements
|
7 | |||
4.5 Brokers and Finders
|
8 | |||
4.6 Acquisition for Investment
|
8 | |||
4.7 Action of Buyer
|
8 | |||
V. NON-COMPETITION COVENANT
|
8 | |||
5.1 Non-Competition Covenant
|
8 | |||
5.2 Remedy for Breach
|
8 | |||
VI. ADDITIONAL AGREEMENTS
|
9 | |||
6.1 Waiver and Release of Claims by Seller
|
9 | |||
6.2 Waiver and Release of Claims by Buyer
|
9 | |||
6.3 Board of Trustees
|
9 | |||
6.4 Community Benefit Program
|
10 | |||
6.5 Indigent/Charity Care
|
10 | |||
|
Page | ||||
6.6 Academic Affiliation Agreement
|
10 | |||
6.7 Medicare Participation
|
10 | |||
6.8 Medicaid Participation
|
11 | |||
6.9 License of HealthONE Name
|
12 | |||
6.10 LLC Operating Agreement
|
12 | |||
6.11 Continuation of Covenants
|
12 | |||
6.12 Further Acts and Assurances
|
12 | |||
6.13 Compliance with Covenants Report
|
13 | |||
6.14 Post-Closing Cooperation of LLC
|
13 | |||
6.15 Exclusivity
|
13 | |||
6.16 Termination Prior to Closing
|
13 | |||
6.17 Monthly Distributions
|
14 | |||
6.18 Ordinary Course
|
14 | |||
VII. CONDITIONS PRECEDENT TO OBLIGATIONS OF BUYER
|
14 | |||
7.1 Representations/Warranties
|
14 | |||
7.2 Attorney General Approval
|
14 | |||
7.3 Action/Proceeding
|
14 | |||
7.4 Closing Documents
|
15 | |||
7.5 No Change in Law
|
15 | |||
7.6 Catastrophic Event
|
15 | |||
VIII. CONDITIONS PRECEDENT TO OBLIGATIONS OF SELLER
|
15 | |||
8.1 Representations/Warranties
|
15 | |||
8.2 Attorney General Approval
|
15 | |||
8.3 Action/Proceeding
|
15 | |||
8.4 Purchase Price/Closing Documents
|
15 | |||
8.5 No Change in Law
|
15 | |||
IX. INDEMNIFICATION
|
16 | |||
9.1 Indemnification by Seller
|
16 | |||
9.2 Indemnification by Buyer
|
16 | |||
9.3 Notice and Procedure
|
16 | |||
9.4 Limitation of Liabilities for Certain Breaches
|
17 | |||
9.5 Survival
|
17 | |||
9.6 Interest
|
17 | |||
X. GENERAL
|
17 | |||
10.1 Consents and Discretion
|
17 | |||
10.2 Expenses; Legal Fees and Costs
|
17 | |||
10.3 Choice of Law
|
18 | |||
10.4 Remedies for Breach of Covenants
|
18 | |||
10.5 Benefit/Assignment
|
18 | |||
10.6 Accounting Date
|
18 | |||
10.7 No Third Party Beneficiary
|
18 | |||
10.8 Waiver of Breach
|
18 | |||
10.9 Notices
|
18 | |||
|
ii
Page | ||||
10.10 Severability
|
19 | |||
10.11 Gender and Number
|
20 | |||
10.12 Divisions and Headings
|
20 | |||
10.13 Time of Essence
|
20 | |||
10.14 Confidentiality
|
20 | |||
10.15 Drafting
|
20 | |||
10.16 Interpretation
|
20 | |||
10.17 Definitions
|
21 | |||
10.18 Multiple Counterparts
|
22 | |||
10.19 Entire Agreement/Amendment
|
23 |
iii
Schedule 3.6
|
Sellers Knowledge Individuals | |
Schedule 4.4
|
Buyers Knowledge Individuals | |
Schedule 5.1
|
Graduate Medical Education Support | |
Schedule 6.4
|
2010 Annual Report to the Community | |
Schedule 6.5
|
Charity Care/Uninsured Discount Policies | |
Schedule 6.7
|
Medicare Participating Facilities | |
Schedule 6.8
|
Medicaid Participating Facilities | |
Schedule 6.17
|
Distribution Guidelines |
Exhibit A
|
Sellers Waiver and Release | |
Exhibit B
|
Buyers Waiver and Release | |
Exhibit C
|
Board of Trustees Bylaws | |
Exhibit D
|
Amendment to Academic Affiliation Agreement | |
Exhibit E
|
Amended and Restated Trademark License Agreements |
iv
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
If to Seller: |
HealthOne, d/b/a
The Colorado Health Foundation 501 South Cherry Street Suite 1100 Denver, Colorado 80246-1325 Attn: President and CEO Facsimile: (303) 322-4176 |
With simultaneous
copy (which shall not constitute notice) to: If to Buyer: |
Proskauer Three First National Plaza 70 West Madison Chicago, Illinois 60602-4342 Attn: Monte Dube Facsimile: (312) 962-3551 c/o HCA Inc. One Park Plaza Nashville, Tennessee 37203 Attn: Senior Vice-President Development Facsimile: (615) 344-2086 |
With simultaneous copy
(which shall not constitute notice) to: |
HCA Inc. One Park Plaza Nashville, Tennessee 37203 Attn: General Counsel Facsimile: (615) 344-2898 |
19
20
21
Term | Section | |||
AAA
|
3.6 | |||
affiliate
|
10.16.12 | |||
Agreement
|
Opening Paragraph | |||
Attorney General
|
3.2.2 | |||
Board
|
6.3 | |||
Buyer
|
Opening Paragraph | |||
Buyers Indemnified Persons
|
9.1 | |||
Bylaws
|
6.3 | |||
Closing
|
2.1 | |||
Closing Date
|
2.1 | |||
Confidentiality Agreement
|
10.14 | |||
control
|
10.16.12 | |||
CPI
|
6.7 | |||
date hereof
|
10.16.7 | |||
HCA
|
2.3.6 | |||
hereby
|
10.16.6 | |||
herein
|
10.16.6 | |||
hereof
|
10.16.6 | |||
Hospitals
|
Recitals | |||
including
|
10.16.10 | |||
Indemnified Party
|
9.3.1 | |||
Indemnifying Party
|
9.3 | |||
Indemnity Notice
|
9.3.3 | |||
LLC
|
Recitals | |||
LLC Interest
|
Recitals | |||
Losses
|
9.1 | |||
Management Services Agreement
|
3.6 | |||
Medicaid Participating Facilities
|
6.9 | |||
Medicare Participating Facilities
|
6.7 | |||
Operating Agreement
|
Recitals | |||
Parties
|
Opening Paragraph | |||
Party
|
Opening Paragraph | |||
Person
|
10.16.5 | |||
Purchase Price
|
1.3 | |||
Redeemed Units
|
1.1 | |||
Redemption Price
|
1.1 | |||
Seller
|
Opening Paragraph | |||
Seller Indemnified Persons
|
9.2 | |||
Sellers Board
|
Recitals | |||
Super Majority Approval
|
6.4 |
22
23
SELLER: | HEALTHONE D/B/A THE COLORADO HEALTH FOUNDATION | |||||
|
||||||
|
By: | /s/ Anne Warhover | ||||
|
|
|||||
BUYER: | HEALTHONE OF DENVER, INC. | |||||
|
||||||
|
By: | /s/ Joe A. Sowell III | ||||
|
|
24
HCA HEALTHONE, LLC
|
||||
By: | HealthONE of Denver, Inc., Manager | |||
By:
/s/
Samuel N. Hazen
|
||||
HCA HOLDINGS, INC.
|
||||
By: | /s/ Samuel N. Hazen | |||
Samuel N. Hazen, | ||||
President of Operations | ||||
25
Except as otherwise provided in a Grant Agreement at or after Grant, |
|
By: | /s/ Richard M. Bracken | ||||
|
|
|||||
|
Chairman of the Board and Chief Executive Officer |
|
By: | /s/ R. Milton Johnson | ||||
|
|
|||||
|
President and Chief Financial Officer |
|
By: | /s/ Richard M. Bracken | ||||
|
|
|||||
|
Chairman of the Board and Chief Executive Officer |
|
By: | /s/ R. Milton Johnson | ||||
|
|
|||||
|
President and Chief Financial Officer |