Dive Brief:
- HCA Holdings reported Q2 profit and revenue better than expected thanks to increased hospital admissions and ER visits, but shares fell 7 percent after Milton Johnson, chief executive, told analysts that ACA benefits would taper off the rest of the year.
- ER visits increased 7.4 percent to 1.98 billion for Q2, and same-facility admissions rose 4.1 percent to 459.7 million.
- Q2 profit was $1.37 per share and revenue earned was $9.90 billion. Analysts had expected a profit of $1.34 per share and revenue of $9.82 billion, according to Reuters.
Dive Insight:
Not all analysts agreed with Johnson's assessment and anticipate additional Medicaid expansion. Brian Tanquilut, an analyst at Jeffries LLC, said patient enrollment in insurance exchanges is expected to increase next year with higher tax penalties for those who lack health insurance.
The company operates 168 hospitals and 112 surgery centers in the U.S. and U.K. HCA expects adjusted earnings per share near the high-end of its previously issued guidance range of $4.90 to $5.30 per share and revenues of $39 to $40 billion in fiscal 2015, according to RTT News.