HCA to return $6B in CARES Act funds, accelerated payments




, HCA to return $6B in CARES Act funds, accelerated payments

HCA Healthcare stated Thursday it plans to return the entire $1.6 billion in federal COVID-19 aid grants it acquired to offset COVID-19 losses in addition to $four.four billion in Medicare accelerated funds.

Nashville, Tenn.-based HCA fared effectively by way of the COVID-19 pandemic. The for-profit hospital chain stated it took a conservative strategy early on within the pandemic that’s now permitting it to present again all of its share of the Supplier Aid Fund grants it acquired by way of the Coronavirus Help, Aid, and Financial Safety Act.

HCA would have been required to repay the $four.four billion federal mortgage it acquired within the type of Medicare accelerated funds, however it seems to be doing a lot earlier than is required. Congress lately permitted relaxed reimbursement phrases that give hospitals extra time to repay the cash.

“Because the preliminary immediacy of the emergency has handed, and with extra data, and extra expertise managing our operations through the pandemic, we consider returning these taxpayer dollars is acceptable and the socially accountable factor to do,” HCA CEO Sam Hazen stated in an announcement. “Our focus will stay on supporting our sufferers, workers and physicians and persevering with the very important function we play within the communities we serve.”

HCA additionally launched a preview of its third quarter monetary outcomes, revenue earlier than revenue taxes of about $950 million in contrast with $979 million within the prior-year interval. Income is predicted to be $13.three billion, up from $12.7 billion within the third quarter of 2019.

HCA expects its adjusted earnings earlier than curiosity, taxes, depreciation and amortization for the third quarter of 2020 will probably be about $2 billion, in contrast with $2.three billion within the prior-year interval. Adjusted EBITDA is a non-GAAP measure.

HCA’s same-facility admissions are anticipated to fall by four% year-over-year within the third quarter, and same-facility equal admissions are anticipated to drop 9% in that point. Identical-facility emergency division visits are anticipated to say no by 20%.

HCA stated it expects its same-facility income per equal admission to leap by about 15% within the third quarter of 2020 year-over-year, which the corporate attributes to greater affected person acuity and favorable payer combine.

HCA’s revenue jumped 38% year-over-year within the second quarter of 2020 to $1.1 billion, even throughout 1 / 4 which elective procedures had been largely shut down on the entrance finish.