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HCA Healthcare

hca · NYSE Healthcare
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Ticker hca
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Industry Medical - Care Facilities
Employees 10,000+
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FY2022 Annual Report · HCA Healthcare
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2022
 

Annual 
Report to 
Shareholders 

2022 by the numbers
 

294K  people employed 

$27.7B  in payroll and benefits 
$5.6B  federal, state and 

local taxes incurred 

$4.4B  in capital investment 

2.0M+  admissions 

37M+  patient encounters 
9.0M  emergency room visits 
$3.5B  estimated cost 

of uncompensated 
care provided 

$44.2M  enterprise giving to 

community organizations 

$17M  colleague giving with    

HCA  Healthcare matching 

143,878  volunteer hours 

6,741  charitable organizations 

supported  
through donations 
and volunteering 

$8.8M  in student loan assistance 

$30.4M  

tuition reimbursement 
benefits 

$12M  in assistance distributed 
by  the HCA Healthcare 
Hope Fund in 2022 
through 4,427  grants 
for HCA Healthcare 
colleagues and families 

 
 
 
 
 
To our valued shareholders,
 

2022 was another positive year for HCA Healthcare. Our 182 
hospitals and approximately 2,300 ambulatory sites of care cared 
for more than 37 million patients. Our people, nearly 294,000 
colleagues and 45,000 physicians on our medical staff, fulfilled 
our core mission by continuing to show up and deliver high-
quality healthcare services to our communities. 

The impact of COVID-19 continued to significantly influence the 
healthcare industry; however, HCA Healthcare performed well 
by balancing local needs while also developing more enterprise 
capabilities to support our local networks. As leaders, our actions 
were informed by lessons learned during the pandemic: the 
importance of setting clear priorities; the power of teamwork 
and partnerships; the significance of timely decision-making 
and execution; and communicating timely and transparently to 
our stakeholders. 

The aftermath of the pandemic created a number of industry-
wide challenges. There has been a clear disruption in the 
labor market; inflationary pressures have driven up costs; and 
capacity constraints have affected the ability to meet patient 
demand. To address these matters, our teams continued to 
incorporate financial resiliency measures while focusing on four 
key areas: recruitment, retention, new care models, and capacity 
management. These initiatives will carry us into 2023. 

Financially, we ended the year in a solid position. Our revenues 
for the year totaled $60.2 billion, a 2.5% increase from 2021. 

We generated $8.5 billion in cash flows from operations, 
providing us with the capacity to execute a balanced approach to 
capital allocation. 

•	  As you see later in this letter, we invested substantial 

amounts of capital into our facilities. 

Above all else, we are 
committed to the care and 
improvement of human life. 

HCA Healthcare’s 

182 hospitals are supported 

by approximately 2,300
 
ambulatory sites of care in 20
 
states and the U.K., including:
 

126 
surgery centers 

130 
freestanding 
emergency rooms 

1,616
physician practices 

270 
urgent care clinics 

43 
home health and
 hospice agencies 

61 
behavioral health 
sites of care 

Learn more about our collective impact 
at HCAhealthcareImpact.com. 

•	  We repurchased $7 billion, or over 30 million shares, of 

*As of Dec. 31, 2022 

common stock. 

•	  We increased our quarterly dividend by 17% over 2021. 

Additionally, we generated over $1.2 billion of pre-tax proceeds 
from divestitures. And, as a taxpaying healthcare provider, we 
incurred approximately $5.6 billion of federal, state, and local 
taxes, including $2.3 billion of income, property, and sales and 
use taxes. 

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In 2022, HCA Healthcare invested more than 
$135 million in our clinical education programs, 
including centers for clinical advancement. These 
investments enhance the learning environment 
for our people so we can advance nursing care for 
our patients. Workforce development remains a 
top priority. We anticipate more investments in 
these areas in the future. 

As part of our workforce development initiatives 
and to help with the country’s issue of physician 
shortages, HCA Healthcare has become a 
significant provider of medical education. We 
have 320 Accreditation Council for Graduate 
Medical Education (ACGME) programs, more 
than 5,300 residents and fellows, and 66 teaching 
hospitals across 16 states. 

In addition to growing the pipeline of physicians 
and nurses, it's important that we continue 
to upgrade our facilities to meet the growing 
demand for healthcare. In 2022, HCA Healthcare 
invested $4.4 billion in our existing facilities. 
That’s the most HCA Healthcare has ever 
invested in our capital spending in a single year. 
These investments provide us with expanded 
capacity, advanced clinical technology, and better 
facilities for our patients.  

As part of our capital spending, we continued 
to expand our outpatient network in key markets. 
For example, in 2022, HCA Healthcare purchased 
MD Now Urgent Care, a network of 59 urgent 
care centers in Florida, which was one of 
the largest urgent care acquisitions in the 
healthcare industry. 

Adding MD Now Urgent Care in Florida enhances 
our already strong capabilities in a rapidly 
growing state by providing convenient outpatient 
care options for our patients. It also connects 
MD Now patients to a comprehensive statewide 
network of care, including acute care and 
specialty services, should they be needed. 

Most importantly, we stayed true to our 
mission and values – caring for our patients, 
people, and communities. 

•	  We cared for over 2 million inpatient 

admissions, almost 9 million emergency room 
visits, over 1.5 million surgical procedures and 
over 200,000 deliveries. 

•	  25% of our admissions and 48% of our 

emergency room visits were for the treatment 
of patients who were either uninsured or 
covered under Medicaid. 

•	  We provided uncompensated care at an 

estimated cost of $3.5 billion. 

We believe HCA Healthcare is poised to meet 
today's challenges and take advantage of the 
opportunities before us. 

On the workforce front, HCA Healthcare made 
investments in our people this past year. Overall, 
we believe our workforce initiatives are starting 
to take hold. This past year, we increased 
our investment in recruitment to help hire 
approximately 105,000 colleagues. 

To further bolster our nursing development 
programs, HCA Healthcare opened seven more 
Galen College of Nursing schools. We expect 
to open more schools in 2023. HCA Healthcare 
has more than 93,000 registered nurses holding 
positions from bedside caregivers to leadership 
roles in various healthcare settings and at every 
level throughout the organization. Bringing Galen 
into the HCA Healthcare family was designed 
to combine two leading nursing organizations 
to increase access to nursing education 
and to provide nursing career development 
opportunities for HCA Healthcare colleagues. 

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We also announced plans to build new full-service 
hospitals in Texas and Florida to help meet both 
states’ growing needs for healthcare services. 

These facilities and hospitals would provide more 
resources for the communities we serve and help 
us deliver the quality care and easier access our 
patients deserve. 

And while we continued to educate our clinicians, 
update our facilities, and grow our networks, 
HCA Healthcare continued to remain a leader in 
operational and clinical excellence. 

We are proud to say that in 2022 Ethisphere 
recognized HCA Healthcare as one of the World's 
Most Ethical Companies for the 12th time. We 
were also recognized for the second consecutive 
year on the 2022 LinkedIn Top Companies 
ranking, an annual list that helps professionals 
identify the top workplaces to grow their careers. 
Additionally, we were named by Military Times as 
one of the country's best employers based on the 
company's efforts to recruit, retain, and support 
current and former service members, military 
spouses, and military caregivers. 

As an organization, we have programs and 
initiatives that underscore our strong sense of 
purpose to do what is right for our patients, 
colleagues, and the communities we serve, and 
these awards reflect that culture. As a result, 
and thanks to our clinical staff's hard work and 
dedication this past year, in the fall 2022, 
more than 80% of our hospitals rated by The 
Leapfrog Group received an "A" or "B" Leapfrog 
Safety Score. 

On the innovation front, HCA Healthcare’s 
Care Transformation and Innovation (CT&I) 
department is working to deliver the healthcare 
of the future and support our care teams. For 
example, this past year, we launched a pilot in 
the Labor and Delivery (L&D) space – "Staff 
Scheduler." The Staff Scheduler system predicts 
staffing needs based on a machine-learning 
algorithm, measures the difficulty of procedures, 

and improves staffing according to proficiencies 
and preferences. Since the pilot launched, we 
have saved time, improved staffing to meet our 
patients' needs, and increased nurse satisfaction. 

CT&I’s work to identify, build, and roll out new 
technology solutions and innovative processes 
should create better outcomes and experiences 
for our care teams and patients. We look forward 
to sharing more of their work. 

To further enhance our technology, we decided 
to update our clinical systems. This updated 
clinical system is designed to provide 
HCA Healthcare clinicians with an intuitive, 
mobile user interface, personalized to our 
workflows. In addition, we expect it will allow us 
to standardize our data sets more effectively and 
utilize cloud-based analytics to support better 
clinical decisions, improve efficiencies, and create 
a safer environment for our patients.  

And as we continue to innovate and integrate 
technology into patient care, we are partnering 
with organizations that share our common goal. 

For example, we recently partnered with 
McKesson Corporation to form an oncology 
research joint venture combining McKesson's  
U.S. Oncology Research (USOR) and  
HCA Healthcare's Sarah Cannon Research  
Institute (SCRI). Together, USOR and SCRI  
create a fully integrated oncology research 
organization with goals to expand clinical  
research, accelerate drug development, and 
increase availability and access to clinical trials for  
community oncology providers and patients. In 
addition, this joint venture with McKesson, which 
unifies our oncology research experts, is intended 
to promote the development of individualized 
therapies and provide more opportunities for 
cancer patients to receive new treatments. 

3
 

 
 
 
 
 
 
 
 
 
 
 
$1.2 million being provided to colleagues 

impacted by the hurricane. We are incredibly 
proud of how our Florida colleagues responded 
before, during, and in the wake of Hurricane Ian. 

Furthermore, HCA Healthcare and the 
HCA Healthcare Foundation showed up 
and supported several organizations in our 
communities throughout the year. For example, 
the Foundation committed approximately $1.38 
million over three years to the Girl Scouts of the 
USA to provide mental wellness workshops to 
girls in grades 4-12 nationwide, over $350,000 
to Kentucky flood relief efforts, $600,000 
to Volunteers of America over two years to 
promote mental wellbeing and resiliency for first 
responders and front-line caregivers, $250,000 
to the American Red Cross to support disaster 
relief and preparedness nationwide, and more. 

Through the HCA Healthcare Foundation’s 
Healthier Tomorrow Fund, we are also 
aligning with strategic partners who share our 
goal of creating a more diverse pipeline of 
healthcare leaders. 

The HCA Healthcare Foundation also committed 
to donating $1.35 million over the next three 
years to Educate Texas, an initiative of the 
Communities Foundation of Texas. This grant 
aims to increase access to student programs 
that enable healthcare careers, including 
high schools in Texas that offer Pathways in 
Technology Early College High School (P-TECH) 
healthcare career tracks. 

We also continued our commitment to support 
Historically Black Colleges and Universities 
(HBCUs) and Hispanic-Serving Institutions 
(HSIs) in communities near our hospitals. As 
part of this commitment, we are investing $1.5 
million to Florida International University's 
Nicole Wertheim College of Nursing & Health 
Sciences (NWCNHS) to address the national 
nursing shortage. Additionally, we announced 
an investment of $750,000 to The University of 
Texas at El Paso to advance diversity in healthcare 

HCA Healthcare is collaborating with Johnson & 
Johnson to address key issues in the healthcare 
industry, including improving health outcomes 
through early-stage lung cancer detection for 
the Black community, providing more resources 
for our nurses on health equity issues, and 
collaborating on cardiovascular health initiatives. 
HCA Healthcare and Johnson & Johnson have 
had a long and productive relationship, and both 
companies have worked hard to address many 
of our country’s healthcare challenges. We are 
excited to collaborate to advance health equity, 
enhance patient care and provide even greater 
support to our nurses. 

And in conjunction with the HCA Healthcare 
Foundation and the American Heart Association, 
we have started a new initiative, Getting to 
the Heart of Stroke, to help prevent initial and 
recurrent strokes and improve overall stroke care. 
This initiative will launch in 15 select 
HCA Healthcare markets to empower consumers 
to know and better manage stroke risk, deepen 
collaboration between healthcare professionals, 
and improve the overall health of communities. 
Through this collaboration, we hope to have a 
significant impact in improving heart and brain 
health outcomes in order to beat stroke. 

Additionally, we continue to show up for our 
colleagues and the communities we serve in their 
time of need. 

In the aftermath of Hurricane Ian, 
HCA Healthcare showed up and supported our 
Florida communities. Our human resources and 
supply chain teams deployed on-site mini-marts, 
fuel stations, showers, and laundry services in 
Florida to assist facilities, colleagues, and nearby 
health systems in need. In addition, the 
HCA Healthcare Hope Fund received 776 
applications from colleagues, with more than 

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leadership. HCA Healthcare is also investing $1.55 million to Tennessee State University to fund scholarships 
for students pursuing healthcare and computer science careers, and $1.5 million to Fisk University to 
support students pursuing the accelerated dual-degree program with Galen College of Nursing. 

HCA Healthcare has announced approximately $6.75 million in gifts since 2021 to multiple colleges and 
universities as part of our three-year $10 million pledge to HBCUs/HSIs. These partnerships will help 
support students pursuing a career in healthcare and, in turn, create a more diverse talent pipeline of 
healthcare leaders. 

Our dedication to showing up for the communities we serve also includes understanding how the 
environment impacts overall health. To help ensure our current and future environmental strategies, like 
reducing our carbon emissions, are carried out, HCA Healthcare has robust governance in place to prepare 
and execute our sustainability plans. 

We look forward to continuing to show up for our colleagues and communities in 2023 and beyond. 

As we push forward on our journey to be the provider system of choice, HCA Healthcare announced 
organizational changes which, we believe, can be a catalyst for unlocking even more value for our 
stakeholders.  As of January 1, 2023, we have a new operating model that includes a chief operating 
officer, an additional senior vice president-finance, and three operating groups with five domestic 
divisions each. The new organizational design reflects a structure that is intended to align better with our 
strategy, streamline areas that can improve long-term performance, and provide greater focus and better 
coordination in supporting our business. As mentioned previously, the COVID-19 pandemic taught us that 
we need to be well-positioned to make timely decisions and act quickly. We believe that’s exactly what this 
structural change will do. 

All in all, we are coming out of this pandemic with momentum. We believe HCA Healthcare is well-
positioned culturally, competitively, and financially. We are grateful for the hard work and dedication our 
colleagues showed this past year in carrying out HCA Healthcare’s mission, and we want to thank them in 
advance for what they’re going to accomplish in the year ahead. 

Thomas F. Frist III  
Chairman of the Board 

Samuel N. Hazen 
Chief Executive Officer 

5
 

 
 
 
 
 
 
 
UNITED STATES
 
SECURITIES AND EXCHANGE COMMISSION
 
Washington, D.C. 20549 

Form 10-K 

(Mark One)
☒  ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT 

OF 1934 

☐ 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 

For the fiscal year ended December 31, 2022 
Or 

For the transition period from

to 

Commission File Number 1-11239 
HCA Healthcare, Inc. 
(Exact Name of Registrant as Specified in its Charter) 

Delaware 
(State or Other Jurisdiction of 
Incorporation or Organization) 
One Park Plaza 
Nashville, Tennessee 
(Address of Principal Executive Offices) 

27-3865930 
(I.R.S. Employer 
Identification No.) 

37203 
(Zip Code) 

Title of Each Class 
Common Stock, $0.01 Par Value 

Registrant’s telephone number, including area code: (615) 344-9551 
Securities Registered Pursuant to Section 12(b) of the Act: 
Trading 
Symbol(s) 
HCA 
Securities Registered Pursuant to Section 12(g) of the Act: None 

Name of Each Exchange 
on Which Registered 
New York Stock Exchange 

Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.  Yes  ☒  No  ☐ 
Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.  Yes  ☐  No  ☒ 
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act 
of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to 
such filing requirements for the past 90 days.  Yes  ☒  No  ☐ 

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 
405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit 
such files).  Yes  ☒  No  ☐ 

Indicate  by  check  mark  whether  the  Registrant  is  a  large  accelerated  filer,  an  accelerated  filer,  a  non-accelerated  filer,  a  smaller  reporting 
company,  or  an  emerging  growth  company.  See  the  definitions  of  “large  accelerated  filer,”  “accelerated  filer,”  “smaller  reporting  company”  and 
“emerging growth company” in Rule 12b-2 of the Exchange Act. 
Large accelerated filer ☒ 
☐ 
Non-accelerated filer 

Accelerated filer 
Smaller reporting company 
Emerging growth company 

☐ 
☐ 
☐ 

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying 

with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ 

Indicate by check mark whether the Registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its 
internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm 
that prepared or issued its audit report.  ☒ 

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included 

in the filing reflect the correction of an error to previously issued financial statements. ☐ 

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation 

received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐ 

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Act).  Yes  ☐  No  ☒ 

Auditor PCAOB ID Number: 42  Auditor Name: Ernst & Young LLP  Auditor Location: Nashville, Tennessee, United States of America 

As of January 31, 2023, there were 276,966,400 outstanding shares of the Registrant’s common stock. As of June 30, 2022, the aggregate market 
value of the common stock held by nonaffiliates was approximately $36.171 billion. For purposes of the foregoing calculation only, Hercules Holding 
II and the Registrant’s directors and executive officers have been deemed to be affiliates. 

Portions of the Registrant’s definitive proxy materials for its 2023 Annual Meeting of Stockholders are incorporated by reference into Part III hereof. 

DOCUMENTS INCORPORATED BY REFERENCE 

	 
INDEX
 

Page 
Reference 

Business ....................................................................................................................................... 
Risk Factors.................................................................................................................................. 
Unresolved Staff Comments ........................................................................................................ 
Properties ..................................................................................................................................... 
Legal Proceedings ........................................................................................................................ 
Mine Safety Disclosures .............................................................................................................. 

Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases 
of Equity Securities ...................................................................................................................... 
[Reserved] .................................................................................................................................... 
Management’s Discussion and Analysis of Financial Condition and Results of Operations ...... 
Quantitative and Qualitative Disclosures about Market Risk ...................................................... 
Financial Statements and Supplementary Data............................................................................ 
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure...... 
Controls and Procedures .............................................................................................................. 
Other Information ........................................................................................................................ 
Disclosure Regarding Foreign Jurisdictions that Prevent Inspections......................................... 

Directors, Executive Officers and Corporate Governance .......................................................... 
Executive Compensation.............................................................................................................. 
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder
 
Matters ......................................................................................................................................... 
Certain Relationships and Related Transactions, and Director Independence ............................ 
Principal Accountant Fees and Services ...................................................................................... 

Exhibits and Financial Statement Schedules ............................................................................... 
Form 10-K Summary  .................................................................................................................. 
Signatures..................................................................................................................................... 

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Part I 
Item 1. 
Item 1A. 
Item 1B. 
Item 2. 
Item 3. 
Item 4. 

Part II 
Item 5. 

Item 6. 
Item 7. 
Item 7A. 
Item 8. 
Item 9. 
Item 9A. 
Item 9B. 
Item 9C. 

Part III 
Item 10. 
Item 11. 
Item 12. 

Item 13. 
Item 14. 

Part IV 
Item 15. 
Item 16. 

Item 1. 
General 

Business 

PART I
 

HCA Healthcare, Inc. is one of the leading health care services companies in the United States. At December 31, 
2022,  we  operated  182  hospitals,  comprised  of  175  general,  acute  care  hospitals;  five  psychiatric  hospitals;  and  two 
rehabilitation hospitals. In addition, we operated 126 freestanding surgery centers and 21 freestanding endoscopy centers. 
Our facilities are located in 20 states and England. 

The terms “Company,” “HCA,” “HCA Healthcare,” “we,” “our” or “us,” as used herein and unless otherwise stated 
or indicated by context, refer to HCA Healthcare, Inc. and its affiliates. The term “affiliates” means direct and indirect 
subsidiaries of HCA Healthcare, Inc. and partnerships and joint ventures in which such subsidiaries are partners. The 
terms “facilities” or “hospitals” refer to entities owned and operated by affiliates of HCA, and the term “employees” refers 
to employees of affiliates of HCA. 

Our primary objective is to provide a comprehensive array of quality health care services in the most cost-effective 
manner possible. Our general, acute care hospitals typically provide a full range of services to accommodate such medical 
specialties as internal medicine, general surgery, cardiology, oncology, neurosurgery, orthopedics and obstetrics, as well 
as diagnostic and emergency services. Outpatient and ancillary health care services are provided by our general, acute 
care hospitals, freestanding surgery centers, freestanding emergency care facilities, urgent care facilities, walk-in clinics, 
diagnostic centers and rehabilitation facilities. Our psychiatric hospitals provide a full range of mental health care services 
through inpatient, partial hospitalization and outpatient settings. 

Our common stock is traded on the New York Stock Exchange (symbol “HCA”). Through our predecessors, we 
commenced  operations  in  1968.  HCA  Healthcare,  Inc.  was  incorporated  in  Delaware  in  October  2010.  Our  principal 
executive offices are located at One Park Plaza, Nashville, Tennessee 37203, and our telephone number is (615) 344-
9551. 

Available Information 

We file certain reports with the Securities and Exchange Commission (the “SEC”), including annual reports on 
Form  10-K,  quarterly  reports  on  Form  10-Q  and  current  reports  on  Form  8-K.  The  SEC  maintains  an  Internet  site  at 
http://www.sec.gov that contains the reports, proxy and information statements and other information we file. Our website 
address is www.hcahealthcare.com. Please note that our website address is provided throughout this report as an inactive 
textual reference only. We make available free of charge, through our website, our annual report on Form 10-K, quarterly 
reports on Form 10-Q, current reports on Form 8-K and all amendments to those reports filed or furnished pursuant to 
Section 13 or 15(d) of the Exchange Act, as soon as reasonably practicable after such material is electronically filed with 
or  furnished  to  the  SEC.  The  information  provided  on  our  website  is  not  part  of  this  report,  and  is  therefore  not 
incorporated by reference unless such information is specifically referenced elsewhere in this report. 

Our  Code  of  Conduct  is  available  free  of  charge  upon  request  to  our  Investor  Relations  Department,  HCA 
Healthcare, Inc., One Park Plaza, Nashville, Tennessee 37203, and is also available on the Ethics and Compliance and 
Corporate Governance portion of our website at www.hcahealthcare.com. 

Business Strategy 

We are committed to providing the communities we serve with high quality, convenient and cost-effective health 
care while growing our business and creating long-term value for our stockholders. We strive to be the health care system 
of choice in the communities we serve by developing comprehensive networks locally and supporting these networks 
with  enterprise  expertise  and  economies  of  scale.  Our  strategy  is  organized  around  a  framework  that  seeks  to  drive 
sustained  growth  by  delivering  operational  excellence,  attracting  exceptional  physicians  and  other  health  care 
professionals,  developing  comprehensive  services;  creating  greater  access,  and  coordinating  higher  quality  care  for 
patients. 

3
 

To achieve these objectives, we align our efforts around the following growth agenda: 
•	 
•	 
•	 

grow our presence in existing markets; 
achieve industry-leading performance in clinical, operational and satisfaction measures; 
recruit  and  retain  physicians  and  other  health  care  professionals  to  meet  the  need  for  high  quality  health 
services; 
continue to utilize economies of scale to grow the Company; and 
pursue a disciplined development strategy. 

•	 
•	 
Our strategy also emphasizes investments that advance our clinical systems and digital capabilities, transform care 
models  with  innovative  care  solutions,  expand  our  workforce  development  programs  and  enhance  our  health  care 
networks and partnerships. 

Health Care Facilities 

We  currently  own,  manage  or  operate  hospitals,  freestanding  surgery  centers,  freestanding  emergency  care 
facilities, urgent care facilities, walk-in clinics, diagnostic and imaging centers, radiation and oncology therapy centers, 
comprehensive rehabilitation and physical therapy centers, physician practices, home health, hospice, outpatient physical 
therapy home and community-based services providers, and various other facilities. 

At December 31, 2022, we owned and operated 175 general, acute care hospitals with 48,508 licensed beds. Most 
of our general, acute care hospitals provide medical and surgical services, including inpatient care, intensive care, cardiac 
care, diagnostic services and emergency services. The general, acute care hospitals also provide outpatient services such 
as outpatient surgery, laboratory, radiology, respiratory therapy, cardiology and physical therapy. Each hospital has an 
organized medical staff and a local board of trustees or governing board comprised of members of the local community. 

At December 31, 2022, we operated five psychiatric hospitals with 593 licensed beds. Our psychiatric hospitals 
provide therapeutic programs, including child, adolescent and adult psychiatric care and adolescent and adult alcohol and 
drug abuse treatment and counseling. 

We also operate outpatient health care facilities, which include freestanding ambulatory surgery centers (“ASCs”), 
freestanding  emergency  care  facilities,  urgent  care  facilities,  walk-in  clinics,  diagnostic  and  imaging  centers, 
comprehensive rehabilitation and physical therapy centers, radiation and oncology therapy centers, physician practices 
and various other facilities. These outpatient services are an integral component of our strategy to develop comprehensive 
health  care  networks  in  select  communities.  Most  of  our  ASCs  are  operated  through  partnerships  or  limited  liability 
companies, with majority ownership of each partnership or limited liability company typically held by a general partner 
or member that is an affiliate of HCA. 

Certain of our affiliates provide a variety of management services to our health care facilities, including patient 
safety programs, ethics and compliance programs, national supply contracts, equipment purchasing and leasing contracts, 
accounting,  financial  and  clinical  systems,  governmental  reimbursement  assistance,  construction  planning  and 
coordination, information technology systems and solutions, legal counsel, human resources services and internal audit 
services. 

COVID-19 

We believe the extent of COVID-19’s impact on our operating results and financial condition has been and could 
continue to be driven by many factors, most of which are beyond our control and ability to forecast. Because of these 
uncertainties, we cannot estimate how long or to what extent COVID-19 will impact our operations. 

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Summary Risk Factors 

You should carefully read and consider the risk factors set forth under Item 1A, “Risk Factors,” as well as all other 
information contained in this annual report on Form 10-K. Additional risks and uncertainties not presently known to us 
or that we currently deem immaterial may also affect us. If any of these risks occur, our business, financial position, 
results  of  operations,  cash  flows  or  prospects  could  be  materially,  adversely  affected.  Our  business  is  subject  to  the 
following principal risks and uncertainties: 

Risks related to COVID-19 and other potential pandemics: 

•	  COVID-19 has affected, and may continue to affect, our operations. Further, COVID-19 could negatively 
impact our business, financial condition, and cash flows, particularly if it causes public health conditions 
and/or economic conditions to deteriorate. 

•	  We are unable to predict the ultimate impact of the CARES Act (as defined below) and other stimulus and 
relief  legislation  or  the  effect  that  such  legislation  and  other  governmental  responses  intended  to  assist 
providers in responding to COVID-19 may have on our business, financial condition, results of operations 
or cash flows. 

•	  The emergence and effects related to a potential future pandemic, epidemic or outbreak of an infectious 

disease could adversely affect our operations. 

Risks related to our indebtedness: 

•	  Our substantial leverage could adversely affect our ability to raise additional capital to fund our operations, 
limit our ability to react to changes in the economy or our industry, expose us to interest rate risk to the 
extent of our variable rate debt and prevent us from meeting our obligations. 

•	  We may not be able to generate sufficient cash to service all of our indebtedness and may not be able to 
refinance our indebtedness on favorable terms. If we are unable to do so, we may be forced to take other 
actions to satisfy our obligations under our indebtedness, which may not be successful. 
•	  Our debt agreements contain restrictions that limit our flexibility in operating our business. 

Risks related to human capital: 

•	  Our results of operations may be adversely affected by competition for staffing, the shortage of experienced 

nurses and other health care professionals and labor union activity. 

•	  We  may  be  unable  to  attract,  hire  and  retain  a  highly  qualified  and  diverse  workforce,  including  key 

management. 

•	  Our performance depends on our ability to recruit and retain quality physicians. 

Risks related to technology, data privacy and cybersecurity: 

•	  A  cybersecurity  incident  or  other  form  of  data  breach  could  result  in  the  compromise  of  our  facilities, 
confidential data or critical data systems. A cybersecurity incident or other form of data breach could also 
give  rise  to  potential  harm  to  patients;  remediation  and  other  expenses;  and  exposure  to  liability  under 
HIPAA (as defined below), consumer protection laws, common law theories or other laws. Such incidents 
could subject us to litigation and foreign, federal and state governmental inquiries, damage our reputation, 
and otherwise be disruptive to our business. 

•	  Our operations could be impaired by a failure of our information systems. 
•	  Health care technology initiatives, particularly those related to sharing patient data and interoperability, may 

adversely affect our operations. 

•	  We may not be reimbursed for the cost of expensive, new technology. 

Risks related to governmental regulation and other legal matters: 

•	  Our  business  and  results  of  operations  may  be  adversely  affected  by  health  care  reform  efforts.  We  are 
unable  to  predict  whether,  what,  and  when  additional  health  reform  measures  will  be  adopted  or 
implemented, and the effects and ultimate impact of any such measures are uncertain and may adversely 
affect our business and results of operations. 

5
 

•	  Changes in government health care programs may adversely affect our revenues. 
•	 

If  we  fail  to  comply  with  extensive  laws  and  government  regulations,  we  could  suffer  penalties  or  be 
required to make significant changes to our operations. 

•	  State efforts to regulate the construction or expansion of health care facilities could impair our ability to 

operate and expand our operations. 
•	  We may incur additional tax liabilities. 
•	  We have been and could become the subject of government investigations, claims and litigation. 
•	  We may be subject to liabilities from claims brought against our facilities, which are costly to defend and 

may require us to pay significant damages if not covered by insurance. 

Risks related to operations, strategy, demand and competition: 

•	  Our hospitals and other facilities face competition for patients from other hospitals and health care providers. 
•	  Any  increase  in  the  volume  of  uninsured  patients  or  deterioration  in  the  collectability  of  uninsured  and 

patient due accounts could adversely affect our results of operations. 
If our volume of patients with private health insurance coverage declines or we are unable to retain and 
negotiate favorable contracts with private third-party payers, including managed care plans, our revenues 
may be adversely affected. 

•	 

•	  Changes to physician utilization practices and treatment methodologies, third-party payer controls designed 
to reduce inpatient services or surgical procedures and other factors outside our control that impact demand 
for medical services may reduce our revenues. 

•	  We  may  encounter  difficulty  acquiring  hospitals  and  other  health  care  businesses,  encounter  challenges 
integrating the operations of acquired hospitals and other health care businesses and/or become liable for 
unknown or contingent liabilities as a result of acquisitions. 

•	  Our  facilities  are  heavily  concentrated  in  Florida  and  Texas,  which  makes  us  sensitive  to  regulatory, 

economic, public health, environmental and competitive conditions and changes in those states. 

•	  Our business and operations are subject to risks related to climate change. 
•	  We  may  be  adversely  affected  if  we  are  not  able  to  achieve  our  environmental,  social  and  governance 

(“ESG”) goals or otherwise meet the expectations of our stakeholders with respect to ESG matters. 

•	  The industry trend toward value-based purchasing may negatively impact our revenues. 

Risks related to macroeconomic conditions: 

•	  Our overall business results may suffer during periods of general economic weakness. 
•	  We are exposed to market risk related to changes in the market values of securities and interest rates. 

Risks related to ownership of our common stock: 

•	  There can be no assurance that we will continue to pay dividends. 
•	  Certain of our investors may continue to have influence over us. 

Sources of Revenue 

Hospital revenues depend upon inpatient occupancy levels, the medical and ancillary services ordered by physicians 
and  provided  to  patients,  the  volume  of  outpatient  procedures  and  the  charges  or  payment  rates  for  such  services. 
Reimbursement rates for inpatient and outpatient services vary significantly depending on the type of third-party payer, 
the  type  of  service  (e.g.,  medical/surgical,  intensive  care  or  psychiatric)  and  the  geographic  location  of  the  hospital. 
Inpatient occupancy levels fluctuate for various reasons, many of which are beyond our control. 

6
 

We  receive  payments  for  patient  services  from  the  federal  government  under  the  Medicare  program,  state 
governments under their respective Medicaid or similar programs, managed care plans (including plans offered through 
the American Health Benefit Exchanges (“Exchanges”)), private insurers and directly from patients. Our revenues by 
primary third-party payer classification and other (including uninsured patients) for the years ended December 31, 2022, 
2021 and 2020 are summarized in the following table (dollars in millions): 

Medicare
Managed Medicare
Medicaid 
Managed Medicaid
Managed care and other insurers
International (managed care and other insurers)
Other
Revenues

 ............................................................. 
 ............................................. 
............................................................. 
 ............................................. 
........................ 
 .. 
 ................................................................... 
............................................................. 

2022 
$ 10,447
9,201
2,636
3,998
29,120
1,317
3,514
$ 60,233

Years Ended December 31, 

Ratio 

2021 
17.3% $ 10,447
8,424
15.3
2,290
4.4
3,124
6.6
30,295
48.3
1,336
2.2
2,836
5.9
100.0% $ 58,752 

Ratio 

2020 
17.8% $ 10,420
6,997
14.3 
1,965
3.9 
2,621
5.3 
26,535
51.6 
1,120
2.3 
1,875
4.8 
100.0% $ 51,533 

Ratio
 

20.2%
13.6
3.8
5.1
51.5
2.2
3.6
100.0%

Medicare is a federal program that provides certain hospital and medical insurance benefits to persons age 65 and 
over, some disabled persons, persons with end-stage renal disease and persons with Lou Gehrig’s Disease. Medicaid is a 
federal-state program, administered by the states, that provides hospital and medical benefits to qualifying low-income 
individuals. All of our general, acute care hospitals located in the United States are eligible to participate in Medicare and 
Medicaid  programs.  Amounts  received  under  Medicare  and  Medicaid  programs  are  generally  significantly  less  than 
established hospital gross charges for the services provided. 

Our hospitals generally offer discounts from established charges to certain group purchasers of health care services, 
including  private  health  insurers,  employers,  health  maintenance  organizations  (“HMOs”),  preferred  provider 
organizations  (“PPOs”)  and  other  managed  care  plans,  including  health  plans  offered  through  the  Exchanges.  These 
discount programs generally limit our ability to increase revenues in response to increasing costs. See Item 1, “Business 
—  Competition.”  For  services  under  Medicare,  Medicaid,  HMOs,  PPOs  and  other  managed  care  plans,  patients  are 
generally  responsible  for  any  exclusions,  deductibles  or  coinsurance  features  of  their  coverage.  The  amounts  of  such 
exclusions, deductibles and coinsurance continue to increase. Collection of amounts due from individuals is typically 
more difficult than from government health care programs or other third-party payers. We provide discounts to uninsured 
patients who do not qualify for Medicaid or for financial relief under our charity care policy. We may attempt to provide 
assistance to uninsured patients to help determine whether they may qualify for Medicaid, other federal or state assistance 
or charity care under our charity care policy. If an uninsured patient does not qualify for these programs, the uninsured 
discount is applied. 

Medicare 

In addition to the reimbursement reductions and adjustments discussed below, the Budget Control Act of 2011 (the 
“BCA”) requires automatic spending reductions to reduce the federal deficit, resulting in a uniform percentage reduction 
across all Medicare programs of 2% per fiscal year. The Coronavirus Aid, Relief, and Economic Security (“CARES”) 
Act and related legislation temporarily suspended these reductions through March 31, 2022 and reduced the sequestration 
adjustment from 2% to 1% from April 1 through June 30, 2022. The full 2% reduction resumed on July 1, 2022. The BCA 
sequestration has been extended through the first six months of 2032. In addition, the American Rescue Plan Act of 2021 
(“ARPA”) increased the federal budget deficit in a manner that triggers an additional sequestration mandated under the 
Pay As You Go Act of 2010 (“PAYGO Act”). As a result, a further payment reduction of up to 4% was required to take 
effect  in  January  2022.  However,  Congress  has  delayed  implementation  of  this  payment  reduction  until  2025.  We 
anticipate that the federal deficit will continue to place pressure on government health care programs, and it is possible 
that future deficit reduction legislation will impose additional spending reductions. 

Inpatient Acute Care 
Under the Medicare program, we receive reimbursement under a prospective payment system (“PPS”) for general, 
acute care hospital inpatient services. Under the hospital inpatient PPS, fixed payment amounts per inpatient discharge 
are  established  based  on  the  patient’s  assigned  Medicare  severity  diagnosis-related  group  (“MS-DRG”).  MS-DRGs 
classify treatments for illnesses according to the estimated intensity of hospital resources necessary to furnish care for 
each principal diagnosis. MS-DRG weights represent the average resources for a given MS-DRG relative to the average 

7
 

 
 
 
 
 
 
 
 

 
 
 
 
 

 
 
 
 
 

 
 
 
 
 

 
 
 
 
 

 
 
 
 
 

 
 
 
 
 

 
 
 
 

 
resources  for  all  MS-DRGs.  MS-DRG  payments  are  adjusted  for  area  wage  differentials.  Hospitals,  other  than  those 
defined  as  “new,”  receive  PPS  reimbursement  for  inpatient  capital  costs  based  on  MS-DRG  weights  multiplied  by  a 
geographically  adjusted federal rate. When the cost to  treat certain patients  falls  well  outside  the  normal distribution, 
providers typically receive additional “outlier” payments. These payments are financed by offsetting reductions in the 
inpatient PPS rates. A high-cost outlier threshold is set annually at a level that targets estimated outlier payments equaling 
5.1% of total inpatient PPS payments for the fiscal year. 

MS-DRG rates are updated, and MS-DRG weights are recalibrated, using cost-relative weights each federal fiscal 
year (which begins October 1). The index used to update the MS-DRG rates (the “market basket”) gives consideration to 
the inflation experienced by hospitals and entities outside the health care industry in purchasing goods and services. Each 
federal fiscal year, the annual market basket update is reduced by a productivity adjustment based on the Bureau of Labor 
Statistics (“BLS”) 10-year moving average of changes in specified economy-wide productivity. A decrease in payment 
rates or an increase in rates that is below the increase in our costs may adversely affect our results of operations. 

For federal fiscal year 2022, the Centers for Medicare & Medicaid Services (“CMS”) increased the MS-DRG rate 
by approximately 2.5%. This increase reflected a market basket update of 2.7%, reduced by a negative 0.7 percentage 
point productivity adjustment and increased by 0.5 percentage points in accordance with the Medicare Access and CHIP 
Reauthorization  Act  of  2015  (“MACRA”).  For  federal  fiscal  year  2023,  CMS  increased  the  MS-DRG  rate  by 
approximately 4.3%. This increase reflects a market basket update of 4.1%, reduced by a negative 0.3 percentage point 
productivity adjustment and increased by 0.5 percentage points as required by MACRA. Additional adjustments may 
apply, depending on patient-specific or hospital-specific factors. For example, the two-midnight rule limits payments to 
hospitals when services to Medicare beneficiaries are payable as inpatient services. In addition, under the post-acute care 
transfer  policy,  Medicare  reimbursement  rates  may  be  reduced  when  an  inpatient  hospital  discharges  a  patient  in  a 
specified MS-DRG to certain post-acute care settings. 

CMS  has  implemented  and  is  implementing  a  number  of  programs  and  requirements  intended  to  transform 
Medicare from a passive payer to an active purchaser of quality goods and services. For example, hospitals that do not 
successfully participate in the Hospital Inpatient Quality Reporting Program are subject to a 25% reduction of the market 
basket update. Hospitals that do not demonstrate meaningful use of electronic health records (“EHRs”) are subject to a 
75% reduction of the market basket update. 

Further, Medicare does not allow an inpatient hospital discharge to be assigned to a higher paying MS-DRG if 
certain designated hospital acquired conditions (“HACs”) were not present on admission and the identified HAC is the 
only condition resulting in the assignment of the higher paying MS-DRG. In this situation, the case is paid as though the 
secondary diagnosis was not present. There are currently 14 categories of conditions on the list of HACs. In addition, the 
25% of hospitals with the worst risk-adjusted HAC scores in the designated performance period receive a 1% reduction 
in their inpatient PPS Medicare payments. CMS has also established three National Coverage Determinations that prohibit 
Medicare reimbursement for erroneous surgical procedures performed on an inpatient or outpatient basis. 

Under the Hospital Readmission Reduction Program (“HRRP”), payments to hospitals may also be reduced based 
on  readmission  rates.  Each  federal  fiscal  year,  inpatient  payments  are  reduced  if  a  hospital  experiences  “excess” 
readmissions within the 30-day time period from the date of discharge for conditions designated by CMS. For federal 
fiscal  year  2017  and  subsequent  years,  CMS  has  designated  six  conditions  or  procedures,  including  heart  attack, 
pneumonia and total hip arthroplasty. Hospitals with what CMS defines as excess readmissions for these conditions or 
procedures  receive  reduced  payments  for  all  inpatient  discharges,  not  just  discharges  relating  to  the  conditions  or 
procedures subject to the excess readmission standard. The amount by which payments are reduced is determined by 
assessing a hospital’s performance relative to hospitals with similar proportions of dual eligible patients, subject to a cap 
established by CMS. The reduction in payments to hospitals with excess readmissions can be up to 3% of a hospital’s 
base payments. Each hospital’s performance is publicly reported by CMS. 

In  addition,  under  the  Hospital  Value-Based  Purchasing  (“HVBP”)  Program,  CMS  reduces  the  inpatient  PPS 
payment amount for all discharges by 2.0%. The total amount collected from these reductions is pooled, and the entire 
amount  collected  is  redistributed  as  incentive  payments  to  reward  hospitals  that  meet  certain  quality  performance 
standards  established  by  CMS.  CMS  scores  each  hospital  based  on  achievement  (relative  to  other  hospitals)  and 
improvement ranges (relative to the hospital’s own past performance) for each applicable performance standard. Hospitals 
that meet or exceed the quality performance standards receive greater reimbursement under the value-based purchasing 
program than they would have otherwise. Hospitals that do not achieve the necessary quality performance receive reduced 
Medicare inpatient hospital payments. Hospitals are scored on a number of individual measures that are categorized into 
four domains: clinical outcomes; efficiency and cost reduction; safety; and person and community engagement. 

8
 

As a result of the national public health emergency (“PHE”) declared in response to COVID-19, CMS has paused 
or refined several measures across various hospital quality measurement and value-based purchasing programs. These 
policies are intended to ensure that the programs neither reward nor penalize hospitals based on circumstances caused by 
the PHE that the measures were not designed to accommodate. For example, CMS is modifying certain readmissions 
measures within the HRRP to exclude COVID-19 diagnosed patients. Under the HVBP Program in federal fiscal year 
2023,  as  a  result  of  the  measure  suppression  policy,  hospitals  will  receive  a  net  neutral  payment  adjustment  for  each 
discharge  that  is  equal  to  the  2%  withheld  under  the  program.  In  addition,  facilities  that  experience  extraordinary 
circumstances beyond their control, that prevent satisfaction of program reporting requirements, may request an exception 
from CMS. 

Outpatient 
CMS reimburses hospital outpatient services (and certain Medicare Part B services furnished to hospital inpatients 
who have no Part A coverage) on a PPS basis. Hospital outpatient services paid under PPS are classified into groups 
called ambulatory payment classifications (“APCs”). Services for each APC are similar clinically and in terms of the 
resources they require. A payment rate is established for each APC. Depending on the services provided, a hospital may 
be  paid  for  more  than  one  APC  for  a  patient  visit.  The  APC payment  rates  are  updated  for  each  calendar  year.  Each 
calendar year, the annual market basket update is further reduced by a productivity adjustment based on the BLS 10-year 
moving  average  of  changes  in  specified  economy-wide  productivity.  For  calendar  year  2022,  CMS  increased  APC 
payment rates by 2.0%. This increase reflected a market basket increase of 2.7% with a negative 0.7 percentage point 
productivity adjustment. For calendar year 2023, CMS increased payment rates under the outpatient PPS by an estimated 
3.8%.  This  increase  reflects  a  market  basket  increase  of  4.1%  with  a  negative  0.3  percentage  point  productivity 
adjustment. CMS requires hospitals to submit quality data relating to outpatient care to avoid receiving a 2.0 percentage 
point reduction in the annual payment update under the outpatient PPS. 

The Medicare reimbursement we receive may also be affected by broad shifts in payment policy. For example, in 
June 2022, the U.S. Supreme Court invalidated past payment cuts for hospitals participating in the 340B Drug Pricing 
Program. Although our hospitals do not participate in the 340B program, the decision has implications for all hospitals 
reimbursed under the outpatient PPS and could affect our Medicare reimbursement for both past and future periods. The 
340B program allows participating hospitals to purchase certain outpatient drugs from manufacturers at discounted rates. 
These hospitals are reimbursed for the discounted drugs under the same Medicare payment methodology and rates that 
are  applied  to  non-340B  hospitals.  The  past  payment  cuts,  which  CMS  implemented  in  2018,  resulted  in  increased 
payments  for  non-340B  hospitals,  and  it  has  not  yet  been  determined  whether  the  increased  payments  to  non-340B 
hospitals may be recouped due to budget neutrality principles. Further, depending on future Medicare payment policies, 
non-340B hospitals may receive decreased reimbursement going forward for outpatient drugs and services. For calendar 
year 2023, CMS finalized the payment rate for drugs acquired through the 340B program in light of the Supreme Court 
decision and, as a result of the payment rate change, is implementing a 3.09% reduction to payment rates for non-drug 
services under the outpatient PPS for calendar year 2023 to achieve budget neutrality. In addition, CMS has, in recent 
years, phased in an expanded site-neutral payment policy for clinic visit services provided at all off-campus provider-
based  departments.  Under  the  policy,  clinic  visit  services  provided  at  all  off-campus  provider-based  departments  are 
generally  not  covered  as  outpatient  department  services  under  the  outpatient  PPS,  but  rather  are  reimbursed  at  the 
Medicare Physician Fee Schedule (“Physician Fee Schedule”) rate, which is generally lower than the outpatient PPS rate. 
Before  the  expanded  policy,  the  Physician  Fee  Schedule  equivalent  rate  did  not  apply  to  “excepted”  provider-based 
departments. The Physician Fee Schedule equivalent rate for calendar year 2023 is substantially less than the outpatient 
PPS rate. 

Rehabilitation 
CMS  reimburses  inpatient  rehabilitation  facilities  (“IRFs”)  on  a  PPS  basis.  Under  the  IRF  PPS,  patients  are 
classified into case mix groups that reflect the relative resource intensity typically associated with the patient’s clinical 
condition. The case mix groups are based upon impairment, age, functional motor and cognitive scores, and comorbidities 
(additional diseases or disorders from which the patient suffers). IRFs are paid a predetermined amount per discharge that 
reflects the patient’s case mix group that is adjusted for facility-specific factors, such as area wage levels, proportion of 
low-income patients, and location in a rural area. Each federal fiscal year, the IRF rates are updated using a market basket 
index, which is reduced by a productivity adjustment based on the BLS 10-year moving average of changes in specified 
economy-wide  productivity.  For  federal  fiscal  year  2022,  CMS  increased  IRF  payment  rates  by  an  estimated  1.9%, 
reflecting an IRF market basket update of 2.6% reduced by a negative 0.7 percentage point productivity adjustment. For 
federal fiscal year 2023, CMS increased IRF payment rates by an estimated 3.9%, reflecting an IRF market basket update 
of 4.2% with a negative 0.3 percentage point productivity adjustment. In addition, CMS requires IRFs to report quality 
measures to avoid receiving a reduction of 2.0 percentage points to the market basket update. 

9
 

In order to qualify for classification as an IRF, at least 60% of a facility’s inpatients during the most recent 12-
month CMS-defined review period must have required intensive rehabilitation services for one or more of 13 specified 
conditions. IRFs must also meet additional coverage criteria, including patient selection and care requirements relating to 
pre-admission screenings, post-admission evaluations, ongoing coordination of care and involvement of rehabilitation 
physicians. A facility that fails to meet the 60% threshold, or other criteria to be classified as an IRF, will be paid under 
either the acute care hospital inpatient or outpatient PPS, which generally provide for lower payment amounts. As of 
December 31, 2022, we had two rehabilitation hospitals and 66 hospital rehabilitation units. 

The  Improving  Medicare  Post-Acute  Care  Transformation  Act  of  2014  (“IMPACT  Act”)  requires  the  U.S. 
Department of Health and Human Services (“HHS”), together with the Medicare Payment Advisory Commission, to work 
toward a unified payment system for post-acute care services provided by IRFs, home health agencies, skilled nursing 
facilities, and long-term care hospitals. A unified post-acute care payment system would pay post-acute care providers 
under a single framework according to a patient’s characteristics, rather than based on the post-acute care setting where 
the patient receives treatment. As required under the statute, CMS issued a report presenting a prototype for a unified 
post-acute care payment model in July 2022. CMS noted in its report the need for additional analyses and acknowledged 
that the universal implementation of a unified post-acute care payment system would require congressional action. The 
Medicare Payment Advisory Commission is required to submit a report to Congress by June 2023. 

Psychiatric 
Inpatient hospital services furnished in psychiatric hospitals and psychiatric units of general, acute care hospitals 
and critical access hospitals are reimbursed on a PPS basis. The inpatient psychiatric facility (“IPF”) PPS is based upon 
a per diem payment, with adjustments to account for certain patient and facility characteristics. The IPF PPS contains an 
“outlier” policy for extraordinarily costly cases and an adjustment to a facility’s base payment if it maintains a full-service 
emergency department. CMS has established the IPF PPS payment rate in a manner intended to be budget neutral. Each 
federal  fiscal  year,  IPF  payment  rates  are  updated  using  a  market  basket  index,  which  is  reduced  by  a  productivity 
adjustment based on the BLS 10-year moving average of changes in specified economy-wide productivity. For federal 
fiscal year 2022, CMS increased IPF payment rates by an estimated 2.0%, reflecting a 2.7% IPF market basket update 
reduced by a negative 0.7 percentage point productivity adjustment. For federal fiscal year 2023, CMS increased IPF 
payment rates by an estimated 3.8%, which reflects a 4.1% IPF market basket increase with a negative 0.3 percentage 
point productivity adjustment. Together with other policy changes, total payments to IPFs are anticipated to increase by 
2.5% in federal fiscal year 2023. Inpatient psychiatric facilities are required to report quality measures to CMS to avoid 
receiving a 2.0 percentage point reduction to the market basket update. As of December 31, 2022, we had five psychiatric 
hospitals and 45 hospital psychiatric units. 

Ambulatory Surgery Centers 
CMS reimburses ASCs using a predetermined fee schedule. Reimbursements for ASC overhead costs are limited 
to no more than the overhead costs paid to hospital outpatient departments under the Medicare hospital outpatient PPS 
for the same procedure. If CMS determines that a procedure is commonly performed in a physician’s office, the ASC 
reimbursement  for  that  procedure  is  limited  to  the  reimbursement  allowable  under  the  Physician  Fee  Schedule,  with 
limited exceptions. All surgical procedures, other than those that pose a significant safety risk or generally require an 
overnight stay, are payable as ASC procedures. From time to time, CMS expands the services that may be performed in 
ASCs, which may result in more Medicare procedures that historically have been performed in hospitals being moved to 
ASCs, reducing surgical volume in our hospitals. Also, more Medicare procedures that historically have been performed 
in ASCs may be moved to physicians’ offices. Some commercial third-party payers have adopted similar policies. 

Historically, CMS updated reimbursement rates for ASCs based on changes to the consumer price index. However, 
for calendar years through 2023, CMS updates to ASC reimbursement rates will be based on the hospital market basket 
index, partly to promote site-neutrality between hospitals and ASCs. For each federal fiscal year, the ASC payment system 
update  is  reduced  by  a  productivity  adjustment  based  on  the  BLS  10-year  moving  average  of  changes  in  specified 
economy-wide  productivity.  For  calendar  year  2022,  CMS  increased  ASC  payment  rates  by  2.0%,  which  reflected  a 
market basket increase of 2.7% and a negative 0.7 percentage point productivity adjustment. For calendar year 2023, 
CMS  increased  ASC  payment  rates  by  3.8%,  which  reflects  a  market  basket  increase  of  4.1%  and  a  negative  0.3 
percentage point productivity adjustment. In addition, CMS has established a quality reporting program for ASCs under 
which ASCs that fail to report on specified quality measures receive a 2.0 percentage point reduction to the market basket 
update. 

10
 

Home Health 
CMS reimburses home health agencies under the Home Health PPS. Home health agencies are paid a national, 
standardized 30-day period payment rate if a period of care meets a certain threshold of home health visits (periods of 
care that do not meet the visit threshold are paid a per-visit payment rate for the discipline providing care). The daily 
home health payment rate is adjusted for case-mix and area wage levels. An outlier adjustment may be paid for periods 
of care where costs exceed a specific threshold amount. Each calendar year, home health payment rates are updated using 
a  market  basket  index,  which  is  reduced  by  a  productivity  adjustment  based  on  the  BLS  10-year  moving  average  of 
changes in specified economy-wide productivity. For calendar year 2022, CMS increased home health payment rates by 
3.2%, based on a home health payment update percentage of 2.6%, which reflected a 3.1% market basket increase reduced 
by a 0.5 percentage point productivity adjustment, among other changes. For calendar year 2023, CMS increased home 
health payment rates by 0.7%, based on a home health payment update percentage of 4.0%, which reflects a 4.1% market 
basket increase reduced by a 0.1 percentage point productivity adjustment, among other changes. Home health agencies 
that do not submit required quality data are subject to a 2.0 percentage point reduction to the market basket update. In 
addition, home health agencies are required to submit a one-time Notice of Admission (“NOA”) for each patient that 
establishes that the beneficiary is under a Medicare home health period of care. Failure to submit the NOA within five 
calendar days from the start of care results in a reduction to the 30-day period payment amount for each day from the start 
of care date until the date the NOA is submitted. 

CMS began implementing a nationwide expansion of the Home Health Value-Based Purchasing (“HHVBP”) Model 
in January 2022. Under the model, home health agencies will receive increases or reductions to their Medicare fee-for-
service payments of up to 5%, based on performance against specific quality measures relative to the performance of 
other home health providers. Data collected in each performance year will impact Medicare payments two years later. 
Calendar  year  2023  is  the  first  performance  year  under  the  expanded  HHVBP  Model,  which  will  affect  payments  in 
calendar year 2025. 

Payment of claims for home health services may be impacted by the Review Choice Demonstration, a program 
intended to identify and prevent home health services fraud, reduce the number of Medicare appeals, and improve provider 
compliance with Medicare program requirements. The program applies only to home health agencies in certain states, 
including  North  Carolina,  Florida  and  Texas.  Providers  in  these  states  may  initially  select  from  the  following  claims 
review and approval processes: pre-claim review, post-payment review or a minimal post-payment review with a 25% 
payment  reduction.  Home  health  agencies  that  maintain  high  levels  of  compliance  are  eligible  for  additional,  less 
burdensome options. 

As noted above, the IMPACT Act requires HHS, in conjunction with the Medicare Payment Advisory Commission, 
to propose a unified post-acute care payment model by 2023. The unified post-acute care payment system would include 
home health agencies. 

Hospice 
Medicare beneficiaries who have a terminal illness and a life expectancy of six months or less may elect to receive 
hospice benefits (palliative care) instead of standard coverage of treatment for the terminal illness and related conditions. 
Hospice services are paid under the Hospice PPS, under which CMS sets a daily rate for each day a patient is enrolled in 
the hospice benefit. The daily rate depends on the level of care provided to a patient (routine home care, continuous home 
care, inpatient respite care, or general inpatient care). Daily rates are adjusted for factors such as area wage levels. Each 
federal fiscal year, hospice payment rates are updated using a market basket index, which is reduced by a productivity 
adjustment based on the BLS 10-year moving average of changes in specified economy-wide productivity. For federal 
fiscal year 2022, CMS increased hospice payment rates by 2.0%, which reflected a 2.7% market basket update and a 
negative 0.7 percentage point productivity adjustment. For federal fiscal year 2023, CMS increased hospice payment rates 
by  3.8%,  which  reflects  a  4.1%  market  basket  update  and  a  negative  0.3  percentage  point  productivity  adjustment. 
Hospices that fail to satisfy quality reporting requirements receive a 2.0 percentage point reduction to the market basket 
update. Beginning in 2024, the payment reduction for failure to report quality data will increase to 4.0 percentage points. 
Overall payments made by Medicare to each hospice are subject to an inpatient cap and an aggregate cap. The 
inpatient cap limits the number of days of inpatient care to no more than 20% of total patient care days. The aggregate 
cap  limits  the  amount  of  Medicare  reimbursement  a  hospice  may  receive,  based  on  the  number  of  Medicare  patients 
served. The aggregate cap is updated annually. In federal fiscal year 2023, the aggregate cap is $32,486.92. If a hospice’s 
Medicare payments exceed its inpatient or aggregate caps, it must repay Medicare for the excess amount. 

11
 

Physician Services 
Physician  services  are  reimbursed  under  the  Physician  Fee  Schedule  system,  under  which  CMS  has  assigned  a 
national relative value unit (“RVU”) to most medical procedures and services that reflects the various resources required 
by a physician to provide the services, relative to all other services. Each RVU is calculated based on a combination of 
work required in terms of time and intensity of effort for the service, practice expense (overhead) attributable to the service 
and malpractice insurance expense attributable to the service. These three elements are each modified by a geographic 
adjustment factor to account for local practice costs and are then aggregated. While RVUs for various services may change 
in a given year, any alterations are required by statute to be virtually budget neutral, such that total payments made under 
the Physician Fee Schedule may not differ by more than $20 million from what payments would have been if adjustments 
were  not  made.  CMS  annually  reviews  resource  inputs  for  select  services  as  part  of  the  potentially  misvalued  code 
initiative.  To  determine  the  payment  rate  for  a  particular  service,  the  sum  of  the  geographically  adjusted  RVUs  is 
multiplied by a conversion factor. For calendar year 2023, CMS reduced the conversion factor by approximately 4.48%. 
However, Congress approved a partial offset to this reduction, increasing payment amounts by 2.5%, which will result in 
a payment reduction of approximately 2% for calendar year 2023. 

Medicare  payments  are  adjusted  based  on  participation  in  the  Quality  Payment  Program  (“QPP”),  a  payment 
methodology intended to reward high-quality patient care. Physicians and certain other health care clinicians are required 
to participate in one of two QPP tracks. Under both tracks, performance data collected in each performance year will 
affect Medicare payments two years later. CMS expects to transition increasing financial risk to providers as the QPP 
evolves. The Advanced Alternative Payment Model (“Advanced APM”) track makes incentive payments available for 
participation  in  specific  innovative  payment  models  approved  by  CMS,  which  are  paid  two  years  after  the  relevant 
performance  period,  if  a  provider  has  sufficient  participation  (based  on  percentage  of  payments  or  patients)  in  an 
Advanced APM. Providers were able to earn a 5.0% Medicare incentive payment for performance year 2022 (to be paid 
in 2024), may earn a 3.5% incentive payment for performance year 2023 (to be paid in 2025), and may receive higher 
Medicare Physician Fee Schedule payment rate updates based on performance in 2025 and beyond. In addition, providers 
are exempt from the reporting requirements and payment adjustments imposed under the Merit-Based Incentive Payment 
System (“MIPS”). Alternatively, providers may participate in the MIPS track. Providers electing this option may receive 
payment  incentives  or  be  subject  to  payment  reductions  based  on  their  performance  with  respect  to  clinical  quality, 
resource use, clinical improvement activities, and meeting Promoting Interoperability standards related to the meaningful 
use  of  EHRs.  Performance  data  collected  in  2023  will  result  in  payment  adjustments  of  up  to  9%  in  2025;  positive 
adjustments are subject to a scaling factor to meet budget neutrality requirements. CMS makes available an exception that 
permits  clinicians  to  request  reweighting  of  any  or  all  performance  categories  if  they  encounter  an  extreme  and 
uncontrollable circumstance or public health emergency, such as COVID-19, that is outside of their control. 

Other 
CMS uses fee schedules to pay for physical, occupational and speech therapies, durable medical equipment, clinical 
diagnostic laboratory services, nonimplantable orthotics and prosthetics and services provided by independent diagnostic 
testing facilities. 

Under the various PPS structures, the payment rates are adjusted for area differences in wage levels by a factor 
(“wage index”) reflecting the relative wage level in the geographic area compared to the national average wage level and 
taking into account occupational mix. The redistributive impact of wage index changes is not anticipated to have a material 
financial impact for 2023. CMS recently finalized a permanent, budget-neutral cap on year-to-year wage index changes 
to smooth variations and decrease volatility. 

Medicare reimburses hospitals for a portion (65%) of deductible and coinsurance amounts that are uncollectable 

from Medicare beneficiaries. 

CMS has implemented contractor reform whereby CMS competitively bids the Medicare fiscal intermediary and 
Medicare carrier functions to Medicare Administrative Contractors (“MACs”), which are geographically assigned across 
12 jurisdictions to service both Part A and Part B providers. Home health and hospice providers are serviced across four 
MAC jurisdictions. While providers with operations across multiple geographies had the option of having all hospitals 
use one home office MAC, we chose, in most cases, to use the MACs assigned to the geographic areas in which our 
hospitals are located. CMS periodically re-solicits bids, and the MAC servicing a geographic area can change as a result 
of the bid competition. MAC transition periods can impact claims processing functions and the resulting cash flows. 

CMS  contracts  with  third  parties  to  promote  the  integrity  of  the  Medicare  program  through  reviews  of  quality 
concerns  and  detections,  and  corrections  of  improper  payments.  Quality  Improvement  Organizations  (“QIOs”),  for 
example,  are  groups  of  physicians  and  other  health  care  quality  experts  that  work  on  behalf  of  CMS  to  ensure  that 
Medicare pays only for goods and services that are reasonable and necessary, and that are provided in the most appropriate 
setting. Under the Recovery Audit Contractor (“RAC”) program, CMS contracts with RACs on a contingency basis to 

12
 

conduct post-payment reviews to detect and correct improper payments in the fee-for-service Medicare program. The 
compensation for RACs is based on their review of claims submitted to Medicare for billing compliance, including correct 
coding and medical necessity, and the amount of overpayments and underpayments they identify. CMS limits the number 
of claims that RACs may audit by limiting the number of records that RACs may request from hospitals based on each 
provider’s claim denial rate for the previous year. CMS has implemented the RAC program on a permanent, nationwide 
basis and expanded the RAC program to the Managed Medicare program and Medicare Part D. CMS has transitioned 
some  of  its  other  integrity  programs  to  a  consolidated  model  by  engaging  Unified  Program  Integrity  Contractors 
(“UPICs”) to perform audits, investigations and other integrity activities. 

We have established policies and procedures to respond to requests from and payment denials by RACs and other 
Medicare contractors. Payment recoveries resulting from reviews and denials are appealable through administrative and 
judicial processes, and we pursue reversal of adverse determinations at appropriate appeal levels. We incur additional 
costs related to responding to requests and denials, including costs associated with responding to requests for records and 
pursuing the reversal of payment denials and losses associated with overpayments that are not reversed upon appeal. In 
recent years, there have been significant delays in the Medicare appeals process. Depending upon changes to and the 
growth of the RAC program and other Medicare integrity programs and our success in appealing claims in future periods, 
our cash flows and results of operations could be negatively impacted. 

Medicare reimburses teaching hospitals for portions of the direct and indirect costs of graduate medical education 
(“GME”) through statutory formulas that are generally based on the number of medical residents and which take into 
account patient volume or the number of hospital beds. Accrediting organizations review GME programs for compliance 
with educational standards. Many of our hospitals operate GME or other residency programs to train physicians and other 
allied health professionals. 

Managed Medicare 

Under  the  Managed  Medicare  program  (also  known  as  Medicare  Part  C,  or  Medicare  Advantage),  the  federal 
government contracts with private health insurers to provide members with Medicare Part A, Part B and Part D benefits. 
Managed Medicare plans can be structured as HMOs, PPOs or private fee-for-service plans. In addition to covering Part 
A and Part B benefits, the health insurers may choose to offer supplemental benefits and impose higher premiums and 
plan costs on beneficiaries. CMS makes fee payment adjustments based on service benchmarks and quality ratings and 
publishes star ratings to assist beneficiaries with plan selection. According to CMS, nearly half of all Medicare enrollees 
participate in managed Medicare plans. 

Medicaid 

Medicaid programs are funded jointly by the federal government and the states and are administered by states under 
approved plans. Most state Medicaid program payments are made under a PPS or are based on negotiated payment levels 
with individual hospitals. Medicaid reimbursement is often less than a hospital’s cost of services. The Patient Protection 
and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act of 2010 (collectively, the 
“Affordable  Care  Act”)  requires  states  to  expand  Medicaid  coverage  to  all  individuals  under  age  65  with  incomes 
effectively at or below 138% of the federal poverty level. However, states may opt out of the expansion without losing 
existing  federal  Medicaid  funding.  A  number  of  states,  including  Texas  and  Florida,  have  opted  out  of  the  Medicaid 
expansion. Among these states, the maximum income level required for individuals and families to qualify for Medicaid 
varies widely. 

Medicaid  enrollment  has  increased  as  a  result  of  COVID-19.  Through  COVID-19  relief  legislation,  Congress 
authorized a temporary increase in federal funds for certain Medicaid expenditures. The enhanced funding is available to 
states  that  maintain  continuous  Medicaid  enrollment  and  meet  certain  other  conditions.  The  continuous  coverage 
requirement will expire as of April 1, 2023, and the increase in federal funding will be phased out through calendar year 
2023. The resumption of redeterminations for Medicaid enrollees and end of the other conditions of funding may lead to 
coverage disruptions and dis-enrollments of current Medicaid enrollees. 

Because most states must operate with balanced budgets and because the Medicaid program is often a state’s largest 
program, many states have adopted or may consider adopting various strategies to reduce their Medicaid expenditures. 
Outside of the government response to COVID-19, budgetary pressures have, in recent years, resulted and likely will 
continue to result in decreased spending, or decreased spending growth, for Medicaid programs in many states. Most 
states in which we operate have adopted broad-based provider taxes to fund the non-federal share of Medicaid programs 
or fund indigent care within the state. Many states have also adopted, or are considering, legislation designed to reduce 
coverage, enroll Medicaid recipients in managed care programs and/or impose additional taxes on hospitals to help finance 
or expand the states’ Medicaid systems. Some states use, or have applied to use, waivers granted by CMS to implement 
Medicaid expansion, impose different eligibility or enrollment restrictions, or otherwise implement programs that vary 

13
 

from federal standards. For example, the Texas Healthcare Transformation and Quality Improvement Program, which is 
operated  under  a  Medicaid  waiver,  expands  Medicaid  managed  care  programs  in  the  state,  provides  funding  for 
uncompensated  care  and  supports  several  delivery  system  reform  initiatives.  Although  this  Texas  waiver  has  been 
extended through 2030, certain delivery system reform initiatives operate under different approval periods. For example, 
a directed payment program for hospitals in Texas expires August 31, 2023. If Texas is unable to obtain future extensions 
of this program or similar programs, our revenues could be negatively impacted. In recent years, aspects of existing or 
proposed Medicaid waiver programs have been subject to legal challenge, resulting in uncertainty. Additionally, federal 
policies that shape administration of the Medicaid programs at the state level are subject to change, including as a result 
of  changes  in  the  presidential  administration.  Where  states  had  previously  been  permitted  to  condition  Medicaid 
enrollment on work or other community engagement, the approvals of waivers permitting these conditions have been 
rescinded, and the federal government is also reexamining block grant funding structures. However, a federal court is 
permitting Georgia to impose work and community engagement requirements under a Medicaid demonstration program 
that is expected to launch in mid-2023. 

Many  state  Medicaid  programs  incorporate  value-based  purchasing  models  and  related  payment  and  delivery 
system reform initiatives that incentivize improvements in quality of care and cost-effectiveness. For example, federal 
funds under the Medicaid program may not be used to reimburse providers for treatment of certain provider-preventable 
conditions.  Each  state  Medicaid  program  must  deny  payments  to  providers  for  the  treatment  of  health  care-acquired 
conditions designated by CMS as well as other provider-preventable conditions that may be designated by the state. 

Congress has expanded the federal government’s involvement in fighting fraud, waste and abuse in the Medicaid 
program  through  the  Medicaid  Integrity  Program.  CMS  employs  UPICs  to  perform  post-payment  audits  of  Medicaid 
claims,  identify  overpayments  and  perform  other  program  integrity  activities.  The  UPICs  collaborate  with  states  and 
coordinate provider investigations across the Medicare and Medicaid programs. In addition, state Medicaid agencies are 
required to establish Medicaid RAC programs. These programs vary by state in design and operation. 

Managed Medicaid 

Enrollment in managed Medicaid plans has increased in recent years, as state governments seek to control the cost 
of  Medicaid  programs.  Managed  Medicaid  programs  enable  states  to  contract  with  one  or  more  entities  for  patient 
enrollment, care management and claims adjudication. The states usually do not relinquish program responsibilities for 
financing,  eligibility  criteria  and  core  benefit  plan  design.  We  generally  contract  directly  with  one  or  more  of  the 
designated entities, usually a managed care organization. The provisions of these programs are state-specific. Many states 
direct  managed  care  plans  to  pass  through  supplemental  payments  to  designated  providers,  independent  of  services 
rendered, to ensure consistent funding of providers that serve large numbers of low-income patients. In an effort to more 
closely tie funds to delivery and outcomes, CMS is limiting these “pass-through payments” that are paid by states under 
managed Medicaid plan contracts and will generally prohibit such payments by 2027. However, CMS permits new pass-
throughs  of  supplemental  provider  payments  for  up  to  a  three-year  period  when  states  are  transitioning  Medicaid 
populations or services from a fee-for-service system to a managed care system. 

Accountable Care Organizations and Bundled Payment Initiatives 

An Accountable Care Organization (“ACO”) is a network of providers and suppliers that work together to invest in 
infrastructure  and  redesign  delivery  processes  to  attempt  to  achieve  high  quality  and  efficient  delivery  of  services. 
Promoting accountability and coordination of care, ACOs are intended to produce savings as a result of improved quality 
and operational efficiency. ACOs that achieve quality performance standards established by HHS are eligible to share in 
a  portion  of  the  amounts  saved  by  the  Medicare  program.  There  are  several  types  of  ACO  programs,  including  the 
Medicare Shared Savings Program. 

The CMS Innovation Center is responsible for establishing demonstration projects and other initiatives in order to 
identify, develop, test and encourage the adoption of new methods of delivering and paying for health care that create 
savings under the Medicare and Medicaid programs, while improving quality of care. For example, providers participating 
in bundled payment initiatives agree to receive one payment for services provided to Medicare patients for certain medical 
conditions  or  episodes  of  care,  accepting  accountability  for  costs  and  quality  of  care.  By  rewarding  providers  for 
increasing quality and reducing costs and penalizing providers if costs exceed a set amount, these models are intended to 
lead to higher quality, more coordinated care at a lower cost to the Medicare program. Hospitals may receive supplemental 
Medicare payments or owe repayments to CMS depending on whether overall CMS spending per episode exceeds or falls 
below a target specified by CMS and whether quality standards are met. The CMS Innovation Center has implemented 
bundled payment models, including the Bundled Payment Care Improvement Advanced (“BPCI Advanced”) program, 
which is voluntary and expected to run through December 2025. Participation in bundled payment programs is generally 

14
 

voluntary,  but  CMS  currently  requires  providers  in  selected  geographic  areas  to  participate  in  a  mandatory  bundled 
program for specified orthopedic procedures and a model for end-stage renal disease treatment. In addition, a mandatory 
radiation oncology model was expected to begin on January 1, 2023, but CMS has indefinitely delayed its implementation. 
CMS has indicated that it will provide six months’ notice before starting the model. 

In  a  strategic  report  issued  in  2021  and  updated  in  2022,  the  CMS  Innovation  Center  highlighted  the  need  to 
accelerate the movement to value-based care and drive broader system transformation. By 2030, the CMS Innovation 
Center aims to have all fee-for-service Medicare beneficiaries and most Medicaid beneficiaries in a care relationship with 
accountability for quality and total cost of care. CMS also indicated it will streamline its payment model portfolio and 
consider how to ensure broad provider participation, including by implementing more mandatory models. In the 2022 
updated report, the CMS Innovation Center indicated that it plans to focus on increased care coordination between primary 
care  physicians  and  specialists.  Moreover,  several  private  third-party  payers  are  increasingly  employing  alternative 
payment models, which may increasingly shift financial risk to providers. 
Disproportionate Share Hospital and Medicaid Supplemental Payments 

In addition to making payments for services provided directly to beneficiaries, Medicare makes additional payments 
to hospitals that treat a disproportionately large number of low-income patients (Medicaid and Medicare patients eligible 
to  receive  Supplemental  Security  Income).  Disproportionate  Share  Hospital  (“DSH”)  payment  adjustments  are 
determined annually based on certain statistical information required by HHS and are paid as a percentage addition to 
MS-DRG  payments.  Pending  litigation  challenging  the  payment  formula  for  prior  years  and  any  future  policies 
implemented by CMS may affect how CMS calculates DSH payments and may increase or decrease our payments in the 
future. CMS has previously proposed making changes to the calculation of Section 1115 Demonstrations in the Medicaid 
fraction of the DSH formula in a manner that would effectively lower DSH payments for many hospitals, and has indicated 
that  the  agency  will  return  to  the  issue  in  future  rulemaking.  These  changes  could  adversely  impact  our  results  of 
operations. CMS also distributes a payment to each DSH hospital that is allocated according to the hospital’s proportion 
of uncompensated care costs relative to the uncompensated care amount of other DSH hospitals. 

Some  states  make  additional  payments  to  providers  through  the  Medicaid  program  that  are  separate  from  base 
payments and not specifically tied to an individual’s care. These supplemental payments may be in the form of Medicaid 
DSH  payments,  which  are  intended  to  offset  hospital  uncompensated  care  costs.  The  federal  government  distributes 
federal Medicaid DSH funds to each state based on a statutory formula. The states then distribute the DSH funding among 
qualifying hospitals. States have broad discretion to define which hospitals qualify for Medicaid DSH payments and the 
amount of such payments. The Affordable Care Act and subsequent legislation provide for reductions to the Medicaid 
DSH hospital program, but Congress has delayed the implementation of these reductions until federal fiscal year 2024. 
Under current law, Medicaid DSH payments will be reduced by $8 billion in each of federal fiscal years 2024 through 
2027.  Supplemental payments may also be in the form of non-DSH payments, such as upper payment limit payments, 
which are intended to address the difference between Medicaid fee-for-service payments and Medicare reimbursement 
rates,  or  payments  under  other  programs  that  vary  by  state  under  Section  1115  waivers.  These  supplemental 
reimbursement programs are designed with input from CMS. The programs are generally authorized for a specified period 
of time and require CMS’s approval to be extended. CMS is considering changes to both DSH and non-DSH types of 
programs. 

TRICARE 

TRICARE  is  the Department  of  Defense’s health  care  program  for members  of  the  armed  forces.  For  inpatient 
services, TRICARE reimburses hospitals based on a DRG system modeled on the Medicare inpatient PPS. For outpatient 
services, TRICARE reimburses hospitals based on a PPS that is similar to that utilized for services furnished to Medicare 
beneficiaries. 

Annual Cost Reports 

All  hospitals,  home  health  agencies,  hospice  providers  and  other  institutional  providers  participating  in  the 
Medicare, Medicaid and TRICARE programs, whether paid on a reasonable cost basis or under a PPS, are required to 
meet certain financial reporting requirements. Federal and, where applicable, state regulations require the submission of 
annual cost reports covering the revenues, costs and expenses associated with the services provided by each provider type 
to Medicare beneficiaries and Medicaid recipients. 

Annual cost reports required under the Medicare and Medicaid programs are subject to routine audits, which may 
result in adjustments to the amounts ultimately determined to be due to us under these reimbursement programs. These 
audits often require several years to reach the final determination of amounts due to or from us under these programs. 
Providers also have rights of appeal, and it is common to contest issues raised in audits of cost reports. 

15
 

Managed Care and Other Discounted Plans 

Most  of  our  hospitals  offer  discounts  from  established  charges  to  certain  large  group  purchasers  of  health  care 
services, including managed care plans and private health insurers. Admissions reimbursed by commercial managed care 
and other insurers were 30%, 31% and 29% of our total admissions for the years ended December 31, 2022, 2021 and 
2020, respectively. Managed care contracts are typically negotiated for terms between one and three years. While we 
generally have received contracted annual increases to payment rates from managed care payers, there can be no assurance 
that we will continue to receive increases in the future. Price transparency initiatives may impact our relationships with 
payers and ability to obtain or maintain favorable contract terms. For example, hospitals are required to publish a list of 
their standard charges for all items and services, including gross charges, discounted cash prices and payer-specific and 
de-identified negotiated charges, in a publicly accessible online file. Further, CMS requires health insurers to publish 
online charges negotiated with providers for health care services. In addition, the No Surprises Act requires providers to 
send to a patient’s health plan a good faith estimate of the expected charges for furnishing scheduled items or services, 
including billing and diagnostic codes, prior to the scheduled date of the items or services. The estimate must cover any 
item or service that is reasonably expected to be provided in conjunction with the primary items or services, including 
those that may be delivered by another provider. However, HHS is deferring enforcement of certain requirements of the 
No Surprises Act related to the good faith estimates for insured patients until it issues additional regulations. It is not clear 
what impact, if any, these or future health reform efforts at the federal and state levels, consolidation within the third-
party payer industry and vertical integration among third-party payers and health care providers will have on our ability 
to negotiate reimbursement rates. 

Uninsured and Self-Pay Patients 

Self-pay revenues are derived from providing health care services to patients without health insurance coverage and 
from the patient responsibility portion of payments for our health care services that are not covered by an individual’s 
health plan. Collection of amounts due from individuals is typically more difficult than collection of amounts due from 
government health care programs or private third-party payers. Any increases in uninsured individuals, changes to the 
payer mix or greater adoption of health plan structures that result in higher patient responsibility amounts could increase 
amounts due from individuals. The No Surprises Act requires providers to provide uninsured and self-pay patients, in 
advance  of  the  scheduled  date  for  the  item  or  service  or  upon  request  of  the  individual,  a  good  faith  estimate  of  the 
expected charges for furnishing scheduled items or services, including billing and diagnostic codes. The estimate must 
cover any item or service that is reasonably expected to be provided in conjunction with the scheduled item or service or 
that is reasonably expected to be delivered by another provider. HHS is delaying enforcement with regard to good faith 
estimates  that  do  not  include  expected  charges  for  co-providers  or  co-facilities  until  the  agency  issues  additional 
regulations.  If  the  actual  charges  to  the  uninsured  or  self-pay  patient  are  substantially  higher  than  the  estimate  or  the 
provider furnishes an item or service that was not included in the good faith estimate, the patient can invoke a patient-
provider dispute resolution process to challenge the higher amount. 

A high percentage of our uninsured patients are initially admitted through our emergency rooms. For the year ended 
December 31, 2022, approximately 85% of our admissions of uninsured patients occurred through our emergency rooms. 
The Emergency Medical Treatment and Labor Act (“EMTALA”) requires any hospital that participates in the Medicare 
program  to  conduct  an  appropriate  medical  screening  examination  of  every  person  who  presents  to  the  hospital’s 
emergency room for treatment and, if the individual is suffering from an emergency medical condition, to either stabilize 
that condition or make an appropriate transfer of the individual to a facility that can handle the condition. The obligation 
to screen and stabilize emergency medical conditions exists regardless of an individual’s ability to pay for treatment. In 
addition, health insurers are required to reimburse hospitals for emergency services provided to enrollees without prior 
authorization and without regard to whether a participating provider contract is in place. 

16
 

Hospital Utilization 

We believe the most important factors relating to the overall utilization of a hospital are the quality and market 
position of the hospital and the number and quality of physicians and other health care professionals providing patient 
care within the facility. Generally, we believe the ability of a hospital to be a market leader is determined by its breadth 
of services, level of technology, quality and condition of the facilities, emphasis on quality of care and convenience for 
patients  and  physicians.  Other  factors  that  impact  utilization  include  the  growth  in  local  population,  local  economic 
conditions and market penetration of managed care programs. 

The following table sets forth certain operating statistics for our health care facilities. Health care facility operations 
are subject to certain seasonal fluctuations, including decreases in patient utilization during holiday periods and increases 
in the cold weather months. 

Number of hospitals at end of period
.................................................... 
Number of freestanding outpatient surgery centers at end of  period(a)
Number of licensed beds at end of period(b) 
Weighted average beds in service(c)
Admissions(d)
Equivalent admissions(e)
Average length of stay (days)(f)
Average daily census(g)
Occupancy rate(h)
Emergency room visits(i)
Outpatient surgeries(j)
Inpatient surgeries(k) 
Days revenues in accounts receivable(l)
Outpatient revenues as a % of patient revenues(m)

...... 
... 
...........................................
........................................................ 
 .......................................................................................... 
 ......................................................................... 
............................................................... 
........................................................................... 
 .................................................................................... 
......................................................................... 
.............................................................................. 
............................................................................... 
 .................................................. 
 ................................. 

2022 

182 
126 
49,281 
41,982 
2,075,459 
3,611,299 
5.1 
28,778 

72% 

8,971,951 
1,023,239 
522,151 
53 
38% 

2021 

182 
125 
48,803 
42,148 
2,089,975 
3,536,238 
5.2 
29,752 

74% 

8,475,345 
1,008,236 
522,069 
49 
37% 

2020 

185 
121 
49,265 
42,246 
2,009,909 
3,312,330 
5.1 
27,734 

69% 

7,450,307 
882,483 
522,385 
45 
35% 

(a)	  Excludes freestanding endoscopy centers (21 at December 31, 2022, 2021 and 2020). 
(b)	  Licensed beds are those beds for which a facility has been granted approval to operate from the applicable state 

licensing agency. 

(c)	  Represents the average number of beds in service, weighted based on periods owned. 
(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  revenue  and  gross  outpatient  revenue  and  then  dividing  the  resulting  amount  by  gross 
inpatient  revenue.  The  equivalent  admissions  computation  “equates”  outpatient  revenue  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 average number of admitted patients in our hospital beds each day. 
(h)	  Represents the percentage of hospital beds in service that are occupied by patients (admitted and observations). 

Both average daily census and occupancy rate provide measures of the utilization of inpatient rooms. 

(i)	  Represents the number of patients treated in our emergency rooms. 
(j)	  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. 

(k)	  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. 

(l)	  Revenues per day is calculated by dividing the revenues for the fourth quarter of each year by the days in the quarter. 
Days revenues in accounts receivable is then calculated as accounts receivable at the end of the period divided by 
revenues per day. 

(m)	  Represents the percentage of patient revenues related to patients who are not admitted to our hospitals. 

Competition 

Generally, other hospitals and facilities in the communities we serve provide services similar to those we offer. 
Additionally, the number of freestanding specialty hospitals, surgery centers, emergency departments, urgent care centers, 
diagnostic  and  imaging  centers  and  other  medical  facilities  in  the  geographic  areas  in  which  we  operate  continues  to 
increase. As a result, most of our hospitals and other facilities operate in a highly competitive environment. In some cases, 

17
 

 
 
competing facilities are more established than we are. Some competing facilities are physician-owned or are owned by 
tax-supported  government  agencies  and  many  others  are  owned  by  not-for-profit  entities  that  may  be  supported  by 
endowments, charitable contributions and/or tax revenues and are exempt from sales, property and income taxes. Such 
exemptions and support are not available to our facilities and may provide the tax-supported or not-for-profit entities an 
advantage  in  funding  capital  expenditures.  In  certain  localities  there  are  large  teaching  hospitals  that  provide  highly 
specialized facilities, equipment and services that may not be available at most of our hospitals. We also face competition 
from specialty hospitals and from both our own and unaffiliated freestanding ASCs for market share in certain high margin 
services. Psychiatric hospitals frequently attract patients from areas outside their immediate locale and, therefore, our 
psychiatric hospitals and units compete with both local and regional hospitals, including the psychiatric units of general, 
acute care hospitals. 

Trends toward clinical and pricing transparency may impact our competitive position, ability to obtain or maintain 
favorable contract terms and patient volumes in ways that may be difficult to predict. For example, hospitals are currently 
required to publish a list of their standard charges for all items and services, including discounted cash prices and payer-
specific and de-identified negotiated charges, in a publicly accessible online file. Hospitals are also required to publish a 
consumer-friendly list of standard charges for certain “shoppable” services (i.e., services that can be scheduled by a patient 
in advance) and associated ancillary services or, alternatively, maintain an online price estimator tool. CMS may impose 
civil monetary penalties for noncompliance with these price transparency requirements. Further, CMS requires health 
insurers  to  publish  online  charges  negotiated  with  providers  for  health  care  services.  Starting  January  1,  2023, health 
insurers must also provide online price comparison tools to help individuals get personalized cost estimates for covered 
items and services. In addition, the No Surprises Act imposes additional price transparency requirements, including the 
requirement that providers send uninsured and self-pay patients (in advance of the scheduled date for the item or service 
or upon request) and health plans of insured patients a good faith estimate of the expected charges and diagnostic codes. 
Until HHS issues additional regulations, the agency is deferring enforcement of certain requirements regarding providing 
good faith estimates for insured patients and for good faith estimates sent to uninsured or self-pay patients that do not 
include expected charges for co-providers or co-facilities. 

Our strategies are designed to ensure our hospitals and other facilities are competitive. We believe our hospitals and 
other facilities compete within local communities on the basis of many factors, including the quality of care, ability to 
attract and retain quality physicians, skilled clinical personnel and other health care professionals, location, breadth of 
services, technology offered and quality and condition of the facilities. We focus on operating outpatient services with 
accessibility and convenient service for patients and predictability and efficiency for physicians. 

Two of the most significant factors that impact the competitive position of a hospital are the number and quality of 
physicians affiliated with or employed by the hospital. Although physicians may at any time terminate their relationship 
with a hospital we operate, our hospitals seek to retain physicians with varied specialties on the hospitals’ medical staffs 
and to attract other qualified physicians. We believe physicians refer patients to a hospital on the basis of the quality and 
scope of services it renders to patients and physicians, the quality of physicians on the medical staff, the location of the 
hospital  and  the  quality  of  the  hospital’s  facilities,  technology,  equipment  and  employees.  Accordingly,  we  strive  to 
maintain and provide quality facilities, technology, equipment, employees and services for physicians and patients. Our 
hospitals face competition from competitors that are implementing physician alignment strategies, such as employing 
physicians, acquiring physician practice groups and participating in ACOs or other clinical integration models. 

Another  major  factor  in  the  competitive  position  of  our  hospitals  and  other  facilities  is  our  ability  to  negotiate 
service contracts with group purchasers of health care services. Managed care plans attempt to direct and control the use 
of  health  care  services  and  obtain  discounts  from  providers’  established  gross  charges.  Similarly,  employers  and 
traditional  health  insurers  continue  to  attempt  to  contain  costs  through  negotiations  with  providers  for  managed  care 
programs and discounts from established gross charges. Generally, hospitals compete for service contracts with group 
purchasers  of  health  care  services  on  the  basis  of  price,  market  reputation,  geographic  location,  quality  and  range  of 
services, quality of the medical staff and convenience. Our future success will depend, in part, on our ability to retain and 
renew our contracts with third-party payers and enter into new contracts on favorable terms. Other health care providers 
may impact our ability to enter into contracts with third-party payers or negotiate increases in our reimbursement and 
other favorable terms and conditions. For example, some of our competitors may negotiate exclusivity provisions with 
managed care plans or otherwise restrict the ability of managed care companies to contract with us. Price transparency 
initiatives and increasing vertical integration efforts involving third-party payers and health care providers, among other 
factors, may increase these challenges. Moreover, the trend toward consolidation among private third-party payers tends 
to increase payer bargaining power over fee structures. In addition, health reform efforts may lead to private third-party 
payers  increasingly  demanding  reduced  fees  or  being  unwilling  to  negotiate  reimbursement  increases.  Health  plans 
increasingly utilize narrow networks that restrict the number of participating providers or tiered networks that impose 
significantly  higher  cost  sharing  obligations  on  patients  that  obtain  services  from  providers  in  a  disfavored  tier.  The 
importance of obtaining contracts with group purchasers of health care services varies from community to community, 
depending on the market strength of such organizations. 

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State certificate of need (“CON”) laws, which place limitations on a health care facility’s ability to expand services 
and facilities, make capital expenditures and otherwise make changes in operations, may also have the effect of restricting 
competition. We currently operate health care facilities in a number of states with CON laws or that require other types 
of  approvals  for  the  establishment  or  expansion  of  certain  facility  types  or  services.  Before  issuing  a  CON  or  other 
approval, these states consider the need for additional, changes in, or expanded health care facilities or services. Removal 
of these requirements could reduce barriers to entry and increase competition in our service areas. In those states that do 
not  require  state  approval  or  that  set  relatively  high  levels  of  expenditures  before  they  become  reviewable  by  state 
authorities, competition in the form of new services, facilities and capital spending is more prevalent. Other federal and 
state laws and regulations may also adversely impact our ability to expand, such as a regulation commonly known as the 
“36  Month  Rule,”  which  restricts  the  assumption  of  Medicare  billing  privileges  for  certain  home  health  agencies.  In 
addition, changes in licensure or other laws or regulations and recognition of new provider types or payment models could 
impact our competitive position. See Item 1, “Business — Regulation and Other Factors.” 

We and the health care industry as a whole face the challenge of continuing to provide quality patient care while 
dealing  with  rising  costs  and  strong  competition  for  patients.  Changes  in  medical  technology,  existing  and  future 
legislation, regulations and interpretations and contracting for provider services by third-party payers remain ongoing 
challenges. 

Admissions, average lengths of stay and reimbursement amounts continue to be negatively affected by third-party 
payer pre-admission authorization requirements, utilization review and pressure to maximize outpatient and alternative 
health  care  delivery  services  for  less  acutely  ill  patients.  Increased  competition,  admission  constraints  and  third-party 
payer  pressures  are  expected  to  continue.  To  meet  these  challenges,  we  intend  to  expand  and  update  our  facilities  or 
acquire  or  construct  new  facilities  where  appropriate,  enhance  the  provision  of  a  comprehensive  array  of  outpatient 
services, offer market competitive pricing to group purchasers of health care services, upgrade facilities and equipment 
and offer new or expanded programs and services. 

Regulation and Other Factors 

Licensure, Certification and Accreditation 

Health care facility construction and operation are subject to numerous federal, state and local regulations relating 
to  the  adequacy  of  medical  care,  equipment,  personnel,  operating  policies  and  procedures,  maintenance  of  adequate 
records,  fire  prevention,  rate-setting,  building  codes  and  environmental  protection.  Facilities  are  subject  to  periodic 
inspection by governmental and other authorities to assure continued compliance with the various standards necessary for 
licensing, certification, and accreditation. We believe our health care facilities are properly licensed under applicable state 
laws. Each of our acute care hospitals located in the United States is eligible to participate in Medicare and Medicaid 
programs and is accredited by The Joint Commission. If any facility were to lose its Medicare or Medicaid certification, 
the facility would be unable to receive reimbursement from federal health care programs. From time to time, we may 
acquire a facility that is not accredited but for which we will seek accreditation. If any facility were to lose accreditation, 
the facility would be subject to state surveys, potentially be subject to increased scrutiny by CMS and likely lose payment 
from private third-party payers. 

The Controlled Substances Act and Drug Enforcement Administration (“DEA”) regulations require every person 
who dispenses controlled substances to be registered with the DEA at each principal place of business or professional 
practice where the person dispenses controlled substances, subject to limited exceptions. Each hospital or clinic must hold 
a  DEA  registration  at  each  location  and  may  be  subject  to  similar  state  registration  requirements.  In  addition,  we  are 
subject to a variety of federal and state statutes and regulations that govern operational issues related to pharmaceuticals 
and controlled substances, such as those related to packaging, storing, and dispensing of pharmaceutical drugs, inventory 
control and recordkeeping requirements for controlled substances, and other standards intended to prevent diversion of 
controlled substances. The DEA, the Department of Justice (“DOJ”), HHS, and state boards of pharmacy have broad 
enforcement  powers,  may  conduct  audits  and  investigations  and  can  impose  substantial  fines  and  other  penalties, 
including revocation of registration. 

Management believes our facilities are in substantial compliance with current applicable federal, state, local and 
independent review body regulations and standards. The requirements for licensure, certification and accreditation are 
subject to change, and, in order to remain qualified, it may become necessary for us to make changes in our facilities, 
equipment, personnel and services. The requirements for licensure, certification and accreditation also include notification 
or  approval  in  the  event  of  the  transfer  or  change  of  ownership  or  certain  other  changes.  Failure  to  provide  required 
notifications or obtain necessary approvals in these circumstances can result in the inability to complete an acquisition or 
change of ownership, loss of licensure, lapses in reimbursement or other penalties. 

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Certificates of Need 

In some states where we operate hospitals and other health care providers, the construction or expansion of health 
care  facilities,  the  acquisition  of  existing  facilities,  the  transfer  or  change  of  ownership,  capital  expenditures  and  the 
addition of new beds or services may be subject to review by and prior approval of, or notifications to, state regulatory 
agencies under a CON program. Such laws generally require the reviewing state agency to determine the public need for 
additional or expanded health care facilities and services or other change. Failure to provide required notifications or 
obtain necessary state approvals can result in the inability to expand facilities, complete an acquisition or expenditure or 
change ownership or other penalties. 

Federal Health Care Program Regulations 

Participation  in  any  federal  health  care  program,  including  the  Medicare  and  Medicaid  programs,  is  heavily 
regulated  by  statute  and  regulation.  If  a  hospital  or  other  provider  fails  to  substantially  comply  with  the  numerous 
conditions of participation in the Medicare and Medicaid programs or performs certain prohibited acts, the provider’s 
participation in the federal health care programs may be terminated, or civil and/or criminal penalties may be imposed. 
Civil monetary penalties are adjusted annually based on updates to the consumer price index. 

Anti-kickback Statute 
A section of the Social  Security Act known as the “Anti-kickback Statute”  prohibits providers and others from 
directly or indirectly soliciting, receiving, offering or paying any remuneration with the intent of generating referrals or 
orders for services or items covered by a federal health care program. Courts have interpreted this statute broadly and 
held that there is a violation of the Anti-kickback Statute if just one purpose of the remuneration is to generate referrals, 
even if there are other lawful purposes. Furthermore, knowledge of the law or the intent to violate the law is not required. 
Violations of the Anti-kickback Statute may be punished by criminal fines of up to $100,000 per violation, imprisonment, 
substantial civil monetary penalties per violation that are subject to annual adjustment based on updates to the consumer 
price index and damages of up to three times the total amount of the remuneration and/or exclusion from participation in 
federal health care programs, including Medicare and Medicaid. In addition, submission of a claim for services or items 
generated in violation of the Anti-kickback Statute may be subject to additional penalties under the federal False Claims 
Act (“FCA”) as a false or fraudulent claim. 

The HHS Office of Inspector General (the “OIG”), among other regulatory agencies, is responsible for identifying 
and  eliminating  fraud,  abuse  and  waste.  The  OIG  carries  out  this  mission  through  a  nationwide  program  of  audits, 
investigations and inspections. The OIG provides guidance to the industry through various methods, including advisory 
opinions and “Special Fraud Alerts.” These Special Fraud Alerts do not have the force of law, but identify features of 
arrangements or transactions that the government believes may cause the arrangements or transactions to violate the Anti-
kickback Statute or other federal health care laws. The OIG has identified several incentive arrangements that constitute 
suspect  practices,  including:  (a)  payment  of  any  incentive  by  a  hospital  each  time  a  physician  refers  a  patient  to  the 
hospital, (b) the use of free or significantly discounted office space or equipment in facilities usually located close to the 
hospital, (c) provision of free or significantly discounted billing, nursing or other staff services, (d) free training for a 
physician’s office staff in areas such as management techniques and laboratory techniques, (e) guarantees which provide, 
if the physician’s income fails to reach a predetermined level, the hospital will pay any portion of the remainder, (f) low-
interest or interest-free loans, or loans which may be forgiven if a physician refers patients to the hospital, (g) payment of 
the costs of a physician’s travel and expenses for conferences or payments to a physician for speaking engagements, (h) 
coverage on the hospital’s group health insurance plans at an inappropriately low cost to the physician, (i) payment for 
services (which may include consultations at the hospital) which require few, if any, substantive duties by the physician, 
(j)  purchasing  goods  or  services  from  physicians  at  prices  in  excess  of  their  fair  market  value,  (k)  rental  of  space  in 
physician offices, at other than fair market value terms, by persons or entities to which physicians refer, and (l) physician-
owned entities (frequently referred to as physician-owned distributorships or PODs) that derive revenue from selling, or 
arranging  for  the  sale  of,  implantable  medical  devices  ordered  by  their  physician-owners  for  use  on  procedures  that 
physician-owners  perform  on  their  own  patients  at  hospitals  or  ASCs.  The  OIG  has  encouraged  persons  having 
information about hospitals who offer the above types of incentives to physicians to report such information to the OIG. 
The OIG also issues “Special Advisory Bulletins” as a means of providing guidance to health care providers. These 
bulletins, along with the Special Fraud Alerts, have focused on certain arrangements that could be subject to heightened 
scrutiny  by  government  enforcement  authorities,  including:  (a)  contractual  joint  venture  arrangements  and  other  joint 
venture  arrangements  between  those  in  a  position  to  refer  business,  such  as  physicians,  and  those  providing  items  or 
services for which Medicare or Medicaid pays, and (b) certain “gainsharing” arrangements, i.e., the practice of giving 
physicians a share of any reduction in a hospital’s costs for patient care attributable in part to the physician’s efforts. 

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In addition to issuing Special Fraud Alerts and Special Advisory Bulletins, the OIG issues compliance program 
guidance for certain types of health care providers. The OIG guidance identifies a number of risk areas under federal fraud 
and abuse statutes and regulations. These areas of risk include compensation arrangements with physicians, recruitment 
arrangements with physicians and joint venture relationships with physicians. 

As  authorized  by  Congress,  the  OIG  has  published  safe  harbor  regulations  that  outline  categories  of  activities 
deemed protected from prosecution under the Anti-kickback Statute. Currently, there are statutory exceptions and safe 
harbors  for  various  activities,  including  the  following:  certain  investment  interests,  space  rental,  equipment  rental, 
practitioner  recruitment,  personnel  services  and  management  contracts,  sale  of  practice,  referral  services,  warranties, 
discounts,  employees,  group  purchasing  organizations,  waiver  of  beneficiary  coinsurance  and  deductible  amounts, 
managed  care  arrangements,  obstetrical  malpractice  insurance  subsidies,  investments  in  group  practices,  freestanding 
surgery  centers,  ambulance  replenishing,  referral  agreements  for  specialty  services,  care  coordination  arrangements, 
arrangements for patient engagement and support, CMS-sponsored model arrangements, cybersecurity technology and 
related services, and value-based arrangements. 

The fact that conduct or a business arrangement does not fall within a safe harbor or is identified in a Special Fraud 
Alert, Special Advisory Bulletin or other guidance does not necessarily render the conduct or business arrangement illegal 
under the Anti-kickback Statute. However, such conduct and business arrangements may lead to increased scrutiny by 
government enforcement authorities. 

We have a variety of financial relationships with physicians and others who either refer or influence the referral of 
patients to our hospitals, other health care facilities and employed physicians, including employment contracts, leases, 
medical director agreements and professional service agreements. We also have similar relationships with physicians and 
facilities to which patients are referred from our facilities and other providers. In addition, we provide financial incentives, 
including minimum revenue guarantees, to recruit physicians into the communities served by our hospitals. While we 
endeavor to comply with the applicable safe harbors, certain of our current arrangements, including joint ventures and 
financial relationships with physicians and other referral sources and persons and entities to which we refer patients, do 
not qualify for safe harbor protection. 

Although we believe our arrangements with physicians and other referral sources and referral recipients have been 
structured  to  comply  with  current  law  and  available  interpretations,  there  can  be  no  assurance  regulatory  authorities 
enforcing  these  laws  will  determine  these  financial  arrangements  comply  with  the  Anti-kickback  Statute  or  other 
applicable laws. An adverse determination could subject us to liabilities under the Social Security Act and other laws, 
including criminal penalties, civil monetary penalties and exclusion from participation in Medicare, Medicaid or other 
federal health care programs. 

Stark Law 
The Social Security Act also includes a provision commonly known as the “Stark Law.” The Stark Law prohibits 
physicians from referring Medicare and Medicaid patients to entities with which they or any of their immediate family 
members  have  a  financial  relationship,  if  these  entities  provide  certain  “designated  health  services”  reimbursable  by 
Medicare or Medicaid unless an exception applies. The Stark Law also prohibits entities that provide designated health 
services  reimbursable  by  Medicare  and  Medicaid  from  billing  the  Medicare  and  Medicaid  programs  for  any  items  or 
services that result from a prohibited referral and requires the entities to refund amounts received for items or services 
provided pursuant to the prohibited referral on a timely basis. “Designated health services” include inpatient and outpatient 
hospital services, clinical laboratory services, radiology and certain other imaging services, radiation therapy services and 
home health services. Sanctions for violating the Stark Law include denial of payment, substantial civil monetary penalties 
per claim submitted and exclusion from the federal health care programs. Failure to refund amounts received as a result 
of a prohibited referral on a timely basis may constitute a false or fraudulent claim and may result in civil penalties and 
additional penalties under the FCA. The statute also provides for a penalty for a circumvention scheme. These penalties 
are updated annually based on changes to the consumer price index. 

There  are  exceptions  to  the  self-referral  prohibition  for  many  of  the  customary  financial  arrangements  between 
physicians  and  providers,  including  employment  contracts,  leases,  recruitment  agreements  and  personal  service 
arrangements.  Unlike  safe  harbors  under  the  Anti-kickback  Statute  with  which  compliance  is  voluntary,  a  financial 
relationship must comply with every requirement of a Stark Law exception or the arrangement is in violation of the Stark 
Law. Although there is an exception for a physician’s ownership interest in an entire hospital, the Affordable Care Act 
prohibits physician-owned hospitals established after December 31, 2010 from billing for Medicare or Medicaid patients 
referred  by  their  physician  owners.  As  a  result,  the  law  effectively  prevents  the  formation  of  new  physician-owned 
hospitals that participate in Medicare or Medicaid. While the Affordable Care Act grandfathers existing physician-owned 
hospitals, it does not allow these hospitals to increase the percentage of physician ownership and significantly restricts 
their ability to expand services. 

21
 

Through  a  series  of  rulemakings,  CMS  has  issued  final  regulations  implementing  the  Stark  Law.  While  these 
regulations were intended to clarify the requirements of the exceptions to the Stark Law, it is unclear how the government 
will interpret many of these exceptions for enforcement purposes. Further, we do not always have the benefit of significant 
regulatory  or  judicial  interpretation  of  the  Stark  Law  and  its  implementing  regulations.  We  attempt  to  structure  our 
relationships to meet an exception to the Stark Law, but the regulations implementing the exceptions are detailed and 
complex, and are subject to continuing legal and regulatory change. We cannot assure that every relationship complies 
fully with the Stark Law. 

Other Fraud and Abuse Provisions 
Certain federal fraud and abuse laws apply to all health benefit programs and provide for criminal penalties. The 
Social Security Act also imposes criminal and civil penalties for making false claims and statements to Medicare and 
Medicaid.  False  claims  include,  but  are  not  limited  to,  billing  for  services  not  rendered  or  for  misrepresenting  actual 
services rendered in order to obtain higher reimbursement, billing for unnecessary goods and services and cost report 
fraud. Federal enforcement officials have the ability to exclude from Medicare and Medicaid any business entities and 
any investors, officers and managing employees associated with business entities that have committed health care fraud, 
even if the officer or managing employee had no knowledge of the fraud. Criminal and civil penalties may be imposed 
for  a  number  of  other  prohibited  activities,  including  failure  to  return  known  overpayments,  certain  gainsharing 
arrangements,  billing  Medicare  amounts  that  are  substantially  in  excess  of  a  provider’s  usual  charges,  offering 
remuneration to influence a Medicare or Medicaid beneficiary’s selection of a health care provider, contracting with an 
individual or entity known to be excluded from a federal health care program, making or accepting a payment to induce 
a physician to reduce or limit services, and soliciting or receiving any remuneration in return for referring an individual 
for an item or service payable by a federal health care program. Like the Anti-kickback Statute, these provisions are very 
broad. Civil penalties may be imposed for the failure to report and return an overpayment within 60 days of identifying 
the overpayment or by the date a corresponding cost report is due, whichever is later. To avoid liability, providers must, 
among  other  things,  carefully  and  accurately  code  claims  for  reimbursement,  promptly  return  overpayments  and 
accurately prepare cost reports. 

Some of these provisions, including the federal Civil Monetary Penalty Law, require a lower burden of proof than 
other fraud and abuse laws, including the Anti-kickback Statute. Substantial civil monetary penalties may be imposed 
under the federal Civil Monetary Penalty Law. These penalties will be updated annually based on changes to the consumer 
price index. In some cases, violations of the Civil Monetary Penalty Law may result in penalties of up to three times the 
remuneration offered, paid, solicited or received. In addition, a violator may be subject to exclusion from federal and state 
health care programs. Federal and state governments increasingly use the federal Civil Monetary Penalty Law, especially 
where they believe they cannot meet the higher burden of proof requirements under the Anti-kickback Statute. Further, 
individuals can receive up to $1,000 for providing information on Medicare fraud and abuse that leads to the recovery of 
at least $100 of Medicare funds under the Medicare Integrity Program. 

In  addition,  the  Eliminating  Kickbacks  in  Recovery  Act  of  2018  (“EKRA”)  establishes  criminal  penalties  for 
paying, receiving, soliciting or offering any remuneration in return for referring a patient to a laboratory, clinical treatment 
facility  or  recovery  home,  or  in  exchange  for  an  individual  using  the  services  of  one  of  these  entities.  The  EKRA 
prohibitions apply to services covered by government health care programs and by private health plans. There is limited 
guidance with respect to the application of EKRA. 

State Fraud and Abuse Laws 
Many states in which we operate also have laws intended to prevent fraud and abuse within the health care industry. 
Some of these laws are similar to the Anti-kickback Statute, prohibiting payments to physicians for patient referrals, and 
to the Stark Law, prohibiting certain self-referrals. These state laws often apply regardless of the source of payment for 
care, and little precedent exists for their interpretation or enforcement. These statutes typically provide for criminal and 
civil penalties, as well as loss of licensure. 

The Federal False Claims Act and Similar State Laws 

We are subject to state and federal laws that govern the submission of claims for reimbursement and prohibit the 
making of false claims or statements. One of the most prominent of these laws is the FCA, which may be enforced by the 
federal government directly or by a qui tam plaintiff, or whistleblower, on the government’s behalf. The government may 
use the FCA to prosecute Medicare and other government program fraud in areas such as coding errors, billing for services 
not  provided  and  submitting  false  cost  reports.  In  addition,  the  FCA  covers  payments  made  in  connection  with  the 
Exchanges created under the Affordable Care Act, if those payments include any federal funds. When a private party 
brings a qui tam action under the FCA, the defendant is not made aware of the lawsuit until the government commences 
its own investigation or makes a determination whether it will intervene. If a defendant is determined by a court of law to 

22
 

be liable under the FCA, the defendant may be required to pay three times the actual damages sustained by the government, 
plus substantial mandatory civil penalties for each separate false claim. These penalties are updated annually based on 
changes to the consumer price index. 

There are many potential bases for liability under the FCA. Liability often arises when an entity knowingly submits 
a  false  claim  for  reimbursement  to  the  federal  government.  The  FCA  defines  the  term  “knowingly”  broadly.  Though 
simple negligence will not give rise to liability under the FCA, submitting a claim with reckless disregard to its truth or 
falsity constitutes a “knowing” submission under the FCA and, therefore, may create liability. Submission of claims for 
services or items generated in violation of the Anti-kickback Statute constitutes a false or fraudulent claim under the FCA. 
Whistleblowers  and  the  federal  government  have  taken  the  position,  and  some  courts  have  held,  that  providers  who 
allegedly have violated other statutes, such as the Stark Law, have thereby submitted false claims under the FCA. False 
claims under the FCA also include the knowing and improper failure to report and refund amounts owed to the government 
in a timely manner following identification of an overpayment. An overpayment is deemed to be identified when a person 
has,  or  should  have  through  reasonable  diligence,  determined  that  an  overpayment  was  received  and  quantified  the 
overpayment. 

Every  entity  that  receives  at  least  $5  million  annually  in  Medicaid  payments  must  have  written  policies  for  all 
employees, contractors or agents, providing detailed information about false claims, false statements and whistleblower 
protections under certain federal laws, including the FCA, and similar state laws. In addition, federal law provides an 
incentive to states to enact false claims laws comparable to the FCA. A number of states in which we operate have adopted 
their own false claims provisions as well as their own whistleblower provisions under which a private party may file a 
civil lawsuit in state court. We have adopted and distributed policies pertaining to the FCA and relevant state laws. 

HIPAA Administrative Simplification and Privacy, Security and Interoperability Requirements 

The Administrative Simplification Provisions of the Health Insurance Portability and Accountability Act of 1996 
(“HIPAA”) and implementing regulations require the use of uniform electronic data transmission standards and code sets 
for certain health care claims and payment transactions submitted or received electronically. In addition, HIPAA requires 
each provider to use a National Provider Identifier. These provisions are intended to encourage electronic commerce in 
the health care industry. 

The privacy and security regulations promulgated pursuant to HIPAA extensively regulate the use and disclosure 
of individually identifiable health information, known as “protected health information,” and require covered entities, 
including health plans and most health care providers, to implement administrative, physical and technical safeguards to 
protect  the  security  of  such  information.  Certain  provisions  of  the  security  and  privacy  regulations  apply  to  business 
associates (entities that handle protected health information on behalf of covered entities), and business associates are 
subject to direct liability for violation of these provisions. In addition, a covered entity may be subject to penalties as a 
result of a business associate violating HIPAA, if the business associate is found to be an agent of the covered entity. 

Covered entities must report breaches of unsecured protected health information to affected individuals without 
unreasonable delay but not to exceed 60 days after discovery of the breach by a covered entity or its agents. Notification 
must also be made to HHS and, in certain situations involving large breaches, to the media. HHS is required to publish 
on its website a list of all covered entities that report a breach involving more than 500 individuals. All non-permitted 
uses or disclosures of unsecured protected health information are presumed to be breaches unless the covered entity or 
business associate establishes that there is a low probability the information has been compromised. Various state laws 
and regulations may also require us to notify affected individuals in the event of a data breach involving individually 
identifiable information. 

Violations of the HIPAA privacy and security regulations may result in criminal penalties and in substantial civil 
penalties per violation. These civil penalties are updated annually based on updates to the consumer price index. HHS 
enforces the regulations and performs compliance audits. In addition to enforcement by HHS, state attorneys general are 
authorized to bring civil actions seeking either injunction or damages in response to violations that threaten the privacy 
of  state  residents.  HHS  may  resolve  HIPAA violations  through  informal  means,  such  as  allowing  a  covered  entity  to 
implement a corrective action plan, but HHS has the discretion to move directly to impose monetary penalties and is 
required  to  impose  penalties  for  violations  resulting  from  willful  neglect.  We  enforce  compliance  in  accordance  with 
HIPAA privacy and security regulations. The Information Protection and Security Department monitors our compliance 
with the HIPAA privacy and security regulations. The HIPAA privacy regulations and security regulations have and will 
continue to impose significant costs on our facilities in order to comply with these standards. 

23
 

There are numerous other laws and legislative and regulatory initiatives at the federal and state levels addressing 
privacy and security concerns. Our facilities remain subject to federal or state privacy-related laws that are more restrictive 
than the privacy regulations issued under HIPAA. These laws vary and could impose additional penalties. For example, 
the Federal Trade Commission uses its consumer protection authority to initiate enforcement actions in response to data 
breaches.  The  California  Consumer  Privacy  Act  of  2018  (the  “CCPA”),  which  was  significantly  amended  by  the 
California Privacy Rights Act (“CPRA”), the Colorado Privacy Act, the Utah Privacy Act and the Virginia Consumer 
Data Protection Act each afford consumers expanded privacy protections. These provide for civil penalties for violations, 
and the CCPA and CPRA provide for a private right of action for data breaches. Additionally, several privacy bills have 
been proposed both at the federal and state level that may result in additional legal requirements that impact our business. 
The potential effects of these laws are far-reaching and may require us to modify our data processing practices and policies 
and  to  incur  substantial  costs  and  expenses  in  order  to  comply.  For  example,  residents  in  states  with  comprehensive 
privacy laws have expanded rights to access and require deletion and portability of their personal information, opt out of 
certain personal information sharing and receive detailed information about how their personal information is used. 

Many foreign data privacy regulations (including the UK Data Protection Legislation) are more stringent than those 
in the United States. In the case of non-compliance with these regulations, regulators may impose administrative fines 
which are based on a multi-factored approach. 

Health care providers and industry participants are also subject to a growing number of requirements intended to 
promote the interoperability and exchange of patient health information. For example, health care providers and certain 
other entities are subject to information blocking restrictions pursuant to the 21st Century Cures Act that prohibit practices 
that are likely to interfere with the access, exchange or use of electronic health information, except as required by law or 
specified by HHS as a reasonable and necessary activity. Violations may result in penalties or other disincentives. 

EMTALA 

All of our hospitals in the United States are subject to EMTALA. This federal law requires any hospital participating 
in the Medicare program to conduct an appropriate medical screening examination of every individual who presents to 
the hospital’s emergency room for treatment and, if the individual is suffering from an emergency medical condition, to 
either stabilize the condition or make an appropriate transfer of the individual to a facility able to handle the condition. 
The obligation to screen and stabilize emergency medical conditions exists regardless of an individual’s ability to pay for 
treatment. There are severe penalties under EMTALA if a hospital fails to screen or appropriately stabilize or transfer an 
individual or if the hospital delays appropriate treatment in order to first inquire about the individual’s ability to pay. 
Penalties for violations of EMTALA include exclusion from participation in the Medicare program and civil monetary 
penalties. These civil monetary penalties are adjusted annually based on updates to the consumer price index. In addition, 
an  injured  individual,  the  individual’s  family  or  a  medical  facility  that  suffers  a  financial  loss  as  a  direct  result  of  a 
hospital’s violation of the law can bring a civil suit against the hospital. 

The government broadly interprets EMTALA to cover situations in which individuals do not actually present to a 
hospital’s emergency room, but present for emergency examination or treatment to the hospital’s campus, generally, or 
to a hospital-based clinic that treats emergency medical conditions or are transported in a hospital-owned ambulance, 
subject to certain exceptions. At least one court has interpreted the law also to apply to a hospital that has been notified 
of  a  patient’s  pending  arrival  in  a  non-hospital  owned  ambulance.  In  recent  years,  the  government  has  undertaken 
enforcement actions in which it has broadly interpreted a hospital’s obligations with respect to screening and stabilizing 
patients  who  present  with  a  psychiatric  emergency.  EMTALA  does  not  generally  apply  to  individuals  admitted  for 
inpatient  services.  The  government  has  expressed  its  intent  to  investigate  and  enforce  EMTALA  violations  actively. 
Hospitals may face conflicting interpretations of EMTALA’s requirements with respect to state laws that limit access to 
abortion or other reproductive health services. For example, HHS has provided guidance regarding EMTALA obligations 
specific to patients who are pregnant or are experiencing pregnancy loss and the preemption of state law. This guidance 
is the subject of legal challenges, and a federal district court issued a preliminary injunction prohibiting enforcement of 
the guidance in Texas and against members of certain professional groups involved in the litigation. 

Corporate Practice of Medicine/Fee Splitting 

Some  of  the  states  in  which  we  operate  have  laws  prohibiting  corporations  and  other  entities  not  owned  by 
physicians  or  other  permitted  health  professionals  from  employing  physicians  or  certain  other  health  professionals, 
practicing  medicine  for  a  profit  and  making  certain  direct  and  indirect  payments  to,  or  entering  into  fee-splitting 
arrangements  with,  health  care  providers  designed  to  induce  or  encourage  the  referral  of  patients  to,  or  the 
recommendation  of,  particular  providers  for  medical  products  and  services.  Possible  sanctions  for  violation  of  these 
restrictions include loss of license and civil and criminal penalties. In addition, agreements between the corporation and 

24
 

the physician or other health professional may be considered void and unenforceable. These statutes vary from state to 
state, are often vague and have seldom been interpreted by the courts or regulatory agencies. 

Health Care Industry Investigations 

Significant media and public attention has focused in recent years on the hospital industry. This media and public 
attention, changes in government personnel and other factors have led to increased scrutiny of the health care industry. 
Except as may be disclosed in our SEC filings, we are not aware of any material investigations of the Company under 
federal or state health care laws or regulations. It is possible that governmental entities could initiate investigations or 
litigation in the future at facilities we operate and that such matters could result in significant penalties, as well as adverse 
publicity.  It  is  also  possible  that  our  executives  and  managers  could  be  included  in  governmental  investigations  or 
litigation or named as defendants in private litigation. 

Our substantial Medicare, Medicaid and other governmental billings result in heightened scrutiny of our operations. 
We continue to monitor all aspects of our business and have developed a comprehensive ethics and compliance program 
that is designed to meet or exceed applicable federal guidelines and industry standards. 

However, because the law in this area is complex and constantly evolving, governmental investigations or litigation 

may result in interpretations that are inconsistent with our practices or industry practices. 

In public statements surrounding current investigations, governmental authorities have taken positions on a number 
of issues, including some for which little official interpretation previously has been available, that appear to be inconsistent 
with practices that have been common within the industry and that previously have not been challenged in this manner. 
In some instances, government investigations that have in the past been conducted under the civil provisions of federal 
law may now be conducted as criminal investigations. 

Both federal and state government agencies have increased their focus on and coordination of civil and criminal 
enforcement efforts in the health care area. Through the national Health Care Fraud and Abuse Control Program, the OIG 
and the DOJ coordinate federal, state and local law enforcement activities with respect to health care fraud against both 
public and private health plans. The OIG and DOJ have, from time to time, established national enforcement initiatives 
that  target  all  hospital  providers,  focusing  on  specific  billing  practices  or  other  suspected  areas  of  abuse.  In  addition, 
governmental  agencies  and  their  agents,  such  as  MACs, fiscal  intermediaries  and  carriers,  may  conduct  audits  of  our 
health care operations. Private third-party payers may conduct similar post-payment audits, and we also perform internal 
audits and monitoring. 

In addition to national enforcement initiatives, federal and state investigations have addressed a wide variety of 
routine  health  care  operations  such  as:  cost  reporting  and  billing  practices,  including  for  Medicare  outliers;  financial 
arrangements with referral sources; physician recruitment activities; physician joint ventures; and hospital charges and 
collection practices for self-pay patients. We engage in many of these routine health care operations and other activities 
that could be the subject of governmental investigations or inquiries. For example, we have significant Medicare and 
Medicaid billings, numerous financial arrangements with physicians who are referral sources to our hospitals, and joint 
venture arrangements involving physician investors. Certain of our individual facilities have received, and other facilities 
may receive, government inquiries from, and may be subject to investigation by, federal and state agencies. Any additional 
investigations of the Company, our executives or managers could result in significant liabilities or penalties to us, as well 
as adverse publicity. 
Health Care Reform 

The  health  care  industry  is  subject  to  changing  political,  regulatory  and  other  influences,  along  with  various 
scientific  and  technological  initiatives  and  innovations.  In  recent  years,  the  U.S.  health  care  industry  has  undergone 
significant changes at the federal and state levels, many of which have been aimed at reducing costs and government 
spending and increasing access to health insurance. The most prominent of these efforts, the Affordable Care Act, affects 
how  health  care  services  are  covered,  delivered  and  reimbursed.  The  Affordable  Care  Act  increased  health  insurance 
coverage through a  combination of private sector health insurance requirements, public program  expansion  and other 
reforms. 

There is uncertainty regarding the ongoing net effect of the Affordable Care Act, particularly as it has been, and 
continues to be, subject to legislative  and regulatory changes  and court challenges. For example, effective January 1, 
2019,  the  penalty  associated  with  the  individual  mandate  to  maintain  health  insurance  was  effectively  eliminated. 
However, some states have imposed individual health insurance mandates, and other states have explored or offer public 
health insurance options. To increase access to health insurance during COVID-19, the ARPA enhanced subsidies for 
individuals eligible to purchase coverage through Affordable Care Act marketplaces. The Inflation Reduction Act, enacted 
in August 2022, extends these enhanced subsidies through 2025. In addition, in a final rule published in September 2021, 

25
 

HHS extended the annual open enrollment period for coverage through federal marketplaces and granted state exchanges 
flexibility to lengthen their open enrollment periods. These changes and initiatives may impact the number of individuals 
that elect to obtain public or private health insurance or the scope of such coverage, if purchased. 

The expansion in public program coverage under the Affordable Care Act has been driven primarily by expanding 
the categories of individuals eligible for Medicaid coverage and permitting individuals with relatively higher incomes to 
qualify. However, a number of states, including Texas and Florida, have opted out of the Medicaid expansion provisions. 
Some states use, or have applied to use, waivers granted by CMS to implement expansion, impose different eligibility or 
enrollment conditions, or otherwise implement programs that vary from federal standards. The Medicaid landscape is 
constantly evolving as the federal and state governments consider and test various models of delivery and payment system 
reform. 

In addition, there is uncertainty regarding the potential impact of other reform efforts at the federal and state levels. 
For example, some members of Congress have proposed measures that would expand government-sponsored coverage, 
including proposals to expand coverage of federally-funded insurance programs as an alternative to private insurance or 
establish  a  single-payer  system  (such  reforms  often  referred  to  as  “Medicare  for  All”).  Other  recent  initiatives  and 
proposals  include  those  aimed  at  price  transparency  and  out-of-network  charges,  which  may  impact  prices  and  the 
relationships between health care providers, insurers and patients. For example, the No Surprises Act imposes various 
requirements  on  providers  and  health  plans  intended  to  prevent  “surprise”  medical  bills,  and  several  states  have 
implemented similar laws intended to protect consumers. The No Surprises Act prohibits providers from charging patients 
an amount beyond the in-network cost sharing amount for items and services rendered by out-of-network providers (i.e., 
prohibits balance billing), subject to limited exceptions. The No Surprises Act also impacts the payment received by an 
out-of-network provider from a health plan for items and services to which the prohibitions on balance billing apply. For 
items and services for which balance billing is prohibited (even when no balance billing occurs), the No Surprises Act 
establishes an independent dispute resolution (“IDR”) process for providers and payers to handle payment disputes that 
cannot be resolved through direct negotiations. Regulations implementing the IDR provisions of the No Surprises Act 
provide that, when making a payment determination, the IDR must consider the qualifying payment amount, or QPA 
(which  is  generally  the  payer’s  median  contracted  rate  for  the  same  or  similar  service  in  an  area),  and  all  additional 
permissible information submitted by each party. The IDR entity must select the offer that best represents the value of the 
item  or  service  under  dispute.  However,  the  final  rule  establishing  the  IDR  process  is  currently  the  subject  of  legal 
challenges. On February 6, 2023, a federal judge vacated parts of the rule, including provisions related to consideration 
of the QPA. The No Surprises Act also requires providers to send an insured patient’s health plan a good faith estimate 
of expected charges, including billing and diagnostic codes, prior to when the patient is scheduled to receive the item or 
service. HHS is deferring enforcement of this requirement until it issues additional regulations. The No Surprises Act also 
requires providers to provide a good faith estimate of expected charges to uninsured or self-pay individuals in connection 
with scheduled items or services, in advance of the date of the scheduled item or service or upon request of the individual. 
HHS is delaying enforcement with regard to good faith estimates that do not include expected charges for co-providers 
or co-facilities until the agency issues additional regulations. If the actual charges to an uninsured or self-pay patient are 
substantially higher than the estimate or the provider furnishes an item or service that was not included in the good faith 
estimate, the patient may invoke a patient-provider dispute resolution process established by regulation to challenge the 
higher amount. 

Other  trends  toward  transparency  and  value-based  purchasing  may  impact  the  competitive  position  and  patient 
volumes  of  providers.  For  example,  the  CMS  Care  Compare  website  makes  available  to  the  public  certain  data  that 
hospitals, home health agencies, hospices, and other Medicare-certified providers submit in connection with Medicare 
reimbursement claims, including performance data on quality measures and patient satisfaction. Medicare reimbursement 
may  be  adjusted  based  on  quality  and  efficiency  measures  and/or  compliance  with  quality  reporting  requirements.  In 
addition, hospitals are required by federal regulation to publish online payer-specific negotiated charges and de-identified 
minimum and maximum charges. Some price transparency obligations apply only to payers. For example, CMS requires 
health  insurers  to  publish  online  charges  negotiated  with  providers  for  health  care  services.  Starting  January  1,  2023, 
health insurers must provide online price comparison tools to help individuals get personalized cost estimates for covered 
items and services. Other industry participants, such as private payers and large employer groups and their affiliates, may 
also introduce financial or delivery system reforms. For example, in recent years, there have been trends influenced by 
private and/or public payers toward enrollment in managed care programs, favoring outpatient care over inpatient care, 
and provider consolidation. These issues are further discussed in Item 1A, “Risk Factors.” 
General Economic and Demographic Factors 

The health care industry is impacted by changes in or uncertainty regarding the overall U.S. economy. COVID-19 
has adversely impacted, and may in the future adversely impact, economic conditions in the United States. In addition, 
outside of COVID-19-related stimulus and relief measures, budget deficits at the federal level and within some state and 
local government entities have had a negative impact on spending for many health and human service programs, including 

26
 

Medicare, Medicaid and similar programs, which represent significant payer sources for our hospitals and other providers. 
We anticipate that the federal deficit, the growing magnitude of Medicare and Medicaid expenditures and the aging of the 
U.S. population will continue to place pressure on government health care programs. Other risks we face during periods 
of economic weakness and high unemployment include potential declines in the population covered under managed care 
agreements,  increased  patient  decisions  to  postpone  or  cancel  elective  and  nonemergency  health  care  procedures 
(including delaying surgical procedures), potential increases in the uninsured and underinsured populations, increased 
adoption  of  health  plan  structures  that  shift  financial  responsibility  to  patients  and  increased  difficulties  in  collecting 
patient receivables for copayment and deductible amounts. 

Compliance Program 

We maintain a comprehensive ethics and compliance program that is designed to meet or exceed applicable federal 
guidelines and industry standards. The program is intended to monitor and raise awareness of various regulatory issues 
among employees and to emphasize the importance of complying with governmental laws and regulations. As part of the 
ethics and compliance program, we provide annual ethics and compliance training to our employees and encourage all 
employees to report any violations to their supervisor, an ethics and compliance officer or to the Company’s ethics line 
available 24 hours a day by phone and internet portal. 

Antitrust Laws 

The federal government and most states have enacted antitrust laws that prohibit certain types of conduct deemed 
to be anti-competitive. These laws prohibit price fixing, market allocation, bid-rigging, concerted refusal to deal, market 
monopolization, price discrimination, tying arrangements, acquisitions of competitors and other practices that have, or 
may have, an adverse effect on competition. Violations of federal or state antitrust laws can result in various sanctions, 
including criminal and civil penalties. Antitrust enforcement in the health care industry is currently a priority of the Federal 
Trade Commission and the DOJ, including with respect to hospital and physician practice acquisitions. We believe we 
are in compliance with such federal and state laws, but courts or regulatory authorities may reach a determination in the 
future that could adversely affect our operations and growth strategy. 

Environmental Matters 

We are subject to various federal, state and local statutes and ordinances regulating the discharge of materials into 
the environment. We do not believe that we will be required to expend any material amounts in order to comply with 
these laws and regulations as presently in effect. Regulations limiting greenhouse gas emissions and energy inputs may 
increase  in  coming  years,  which  may  increase  our  costs  associated  with  compliance,  disrupt  and  adversely  affect  our 
operations and could materially, adversely affect our financial performance. 

Our environmental strategy is designed to complement our mission of the care and improvement of human life, 
which extends to the environment. This strategy is centered on incorporating the following four pillars into our operations: 

•  Managing energy and water responsibly, 
•  Enhancing our climate resilience, 
•  Sourcing and consuming efficiently, and 
•  Managing the environmental impact of our capital programs. 

We are pursuing a plan to reduce our scope 1 and scope 2 greenhouse gas emissions by 2030 in line with the Paris 
Agreement 1.5℃ emissions reduction goal. Our initiatives contemplate operational changes intended to reduce energy 
consumption, including by accelerating related capital investments, new technology pilots, renewable energy contracting 
and investments, and medical gas initiatives. We have baselined our scope 1 and scope 2 greenhouse gas emissions for 
2021, and we are updating those calculations for 2022 activity to measure trends in our greenhouse gas emissions. We are 
exploring a process to measure scope 3 greenhouse gas emissions in the future. 

In 2022, we released our inaugural Task Force on Climate-related Financial Disclosure (“TCFD”) report to provide 
additional insight into our commitment to improving our environmental impact and strengthening our climate resilience 
to support the communities we serve. The report follows TCFD guidance and outlines the ways we are integrating climate-
related risks and opportunities into our governance structure, our risk management and strategy development processes, 
and how we establish and track climate-related metrics and targets. We plan to continue following established guidelines 
to assess and better understand the physical and transition risks from climate change that we believe most significantly 
impact  our  operations.  We  have  also  integrated  climate-related  risk  assessment  into  our  established  enterprise  risk 
management function. 

27
 

While  we  currently  believe  that  compliance  with  existing  environmental  laws  and  regulations  does  not  have  a 
material impact on our operations, changes in consumer preferences and additional legislation or regulatory requirements, 
including those associated with the transition to a low-carbon economy, may increase costs associated with compliance, 
the operation of our facilities and supplies. 

Insurance 

As is typical in the health care industry, we are subject to claims and legal actions by patients in the ordinary course 
of business. Subject, in most cases, to a $15 million per occurrence self-insured retention, our facilities are insured by our 
insurance subsidiary for losses up to $80 million per occurrence (effective January 1, 2023). The insurance subsidiary has 
obtained reinsurance for professional liability risks generally above a retention level of either $25 million or $35 million 
per occurrence, depending on the jurisdiction for the related claim. We also maintain professional liability insurance with 
unrelated commercial carriers for losses in excess of amounts insured by our insurance subsidiary. 

We  purchase,  from  unrelated  insurance  companies,  coverage  for cyber  security  incidents,  directors  and  officers 
liability  and  property  loss  in  amounts  we  believe  are  reasonable  and  subject  to  terms  of  coverage  we  believe  to  be 
reasonable. 

Human Capital Resources 

Our  workforce  is  comprised  of  approximately  294,000  employees  (as  of  December  31,  2022),  including 
approximately  87,000  part-time  and  PRN  employees  (references  herein  to  “employees”  refer  to  employees  of  our 
affiliates).  Our  Board  of  Directors  and  its  committees  oversee  human  capital  matters  through  regular  reporting  from 
management and advisors. 
Diversity, Equity and Inclusion 

We are committed to fostering a culture of inclusion that embraces and supports our patients, colleagues, partners, 
physicians and communities. Our workforce is comprised of approximately 78% women and 44% people of color. Our 
policies  prohibit  discrimination  on  the  basis  of  age,  gender,  disability,  race,  color,  ancestry,  citizenship,  religion, 
pregnancy, sexual orientation, gender identity or expression, national origin, medical condition, marital status, veteran 
status, payment source or ability, or any other basis prohibited by federal, state or local law. 

We are dedicated to being an employer of choice. We seek to recruit diverse candidates at all stages of their careers 
and through a variety of venues and programs. Our Chief Diversity Officer leads a team that is responsible for advancing 
diversity, equity and inclusion (“DEI”) and cultural competence initiatives across the Company. Our Executive Diversity 
Council, sponsored by our Chief Executive Officer and comprised of executive leaders from the Company, champions 
DEI across the Company and informs strategic decisions towards DEI goals and objectives. In addition to the Executive 
Diversity Council, we have implemented DEI Councils comprised of diversity leaders and facility representatives and 
added division-based DEI leaders to support local deployment of DEI strategies and programs across the enterprise. 

In  the  beginning  of  2020,  we  launched  a  DEI  strategy  based  on  internal  and  external  research  to  support  the 
advancement of people of color and women into leadership roles. We have since established nine employee resource 
groups to provide colleagues opportunities to convene around shared experiences, including groups for Black colleagues, 
women, young professionals, LGBTQ+, Hispanic/Latinx, and Asian colleagues, veterans, colleagues with disabilities, 
and a group focused on mental health and wellness – each with a senior leader serving as executive sponsor. In addition, 
the  Company  launched  a  sponsorship  program  in  2022  for  a  cohort  of  Black  colleagues  to  support  leadership  and 
advancement, which has since expanded to include a broader focus on Black, Asian, and Hispanic leaders. 

The Company’s Corporate Governance Guidelines reinforce its commitment to diversity by requiring the initial 
pool of candidates from which the Nominating and Corporate Governance Committee may recommend director nominees 
to  include  qualified  female  and  racially/ethnically  diverse  candidates  and  the  Nominating  and  Corporate  Governance 
Committee  to  request  that  any  third-party  search  firm  that  it  engages  to  identify  such  candidates  to  include  qualified 
female and racially/ethnically diverse candidates in such initial pool. 

We  encourage  you  to  review  the  “Diversity,  Equity  and  Inclusion”  section  of  our  website,  which  includes  our 
EEO-1  data,  as  well  as  our  2022  Impact  Report  (available  at  www.hcahealthcareimpact.com)  for  more  detailed 

28
 

information  regarding  our  DEI  and  pay  equity  programs  and  initiatives.  Nothing  on  our  website,  including  our  2022 
Impact Report or sections thereof, shall be deemed incorporated by reference into this annual report on Form 10-K. 

Compensation and Benefits 

To recruit and retain a highly qualified and diverse workforce, we design competitive compensation and benefits 
programs  to  attract,  retain,  recognize  and  reward  the  performance  of  our  employees.  These  programs  (which  vary  by 
location) include an Employee Stock Purchase Plan, a 401(k) Plan, health care and insurance benefits, flexible spending 
accounts, paid time off, family leave, family care resources, flexible work schedules, employee assistance and wellbeing 
programs, tuition and student loan payment assistance and on-site services, such as cafeterias and fitness centers, among 
many others. 

Recruitment and Workforce Development 

We continue to invest in numerous initiatives to attract and acquire the talent needed to deliver on our mission and 
business  objectives.  We  are  working  within  our  communities  to  expand  access  to  health  care  programs  and  careers, 
including  our  expansion  of  Galen  College  of  Nursing,  to  specifically  address  the  growing  nursing  shortage.  We  are 
broadening  our  access  to  talent  through  early  outreach  programs,  internships,  career  paths,  and  college  and  diversity 
recruitment efforts. 

Serving the Community 

We strive  to  provide not  only the  quality  health  care that  our patients  deserve, but  also to  address needs  in  the 
communities we serve. We provide opportunities for our colleagues to get involved and be a part of something bigger 
than our organization. By joining forces with other leading organizations, we believe our collective talents and work has 
an impact that is only possible when we work together. Through research, partnerships, leadership and investments, we 
are tackling problems in our communities and throughout the health care industry, from disaster relief to environmental 
sustainability to new innovations. We also support the HCA Healthcare Foundation, whose mission is to promote health 
and wellbeing and strive to make a positive impact in all the communities HCA Healthcare serves by providing leadership, 
service and financial support to effective non-profit organizations. 

Culture and Talent Development 

HCA Healthcare’s culture is  critical to our success. We seek to instill a culture across our system that includes 
making  a  positive  impact  on  our  patients,  communities  and  each  other,  and  nurture  that  culture  through  inclusion, 
compassion and respect. To assess and improve employee retention and engagement, we connect with our colleagues in 
several ways to listen  to and respond to their concerns, including  employee  rounding, employee  advisory groups and 
governance councils, and colleague surveys throughout the year. During 2022, we expanded our efforts to improve our 
colleagues’ engagement by focusing on the vital behavior of personal connection through care, support and growth to 
better respond to the needs of our colleagues. By providing education, training and opportunities to grow as clinicians and 
leaders, we seek to support our colleagues throughout their career journey. We also support our colleagues’ development 
through programs such as tuition assistance, student loan payment assistance, clinical training and certification. 

We are highly committed to developing leaders who support our culture, grow our business and lead the industry. 
We invest in award winning programs offered through the HCA Healthcare Leadership Institute where we develop the 
capabilities of our current leaders and build our pipeline for the future. These programs are designed to assess, develop 
and  advance  leaders  at  all  levels  from  supervisory  to  executive.  Our  commitment  to  leadership  development  and 
succession planning creates the platform for which we continue to deliver on our mission and grow our business. 

Health, Safety and Wellness 

We focus on supporting employees in ways that have a positive impact on their physical, mental and financial health 
so they can take care of themselves, their families, their patients and each other. We provide our employees and their 
families with access to a variety of health and wellness programs that can help with burnout, stress, depression, anxiety, 
and other health concerns as well as relationship issues, career development, work challenges, retirement planning and 
financial support. For 2022, this included the following touchpoints: 

Approximately 40,000 visits to the online Wellbeing Hub website; 

• 
•  More than 17,000 calls to the Nurse Care help line; and 
• 

Approximately 14,000 interactions with Optum Wellbeing Services. 

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Labor Matters
 

We are subject to various state and federal laws that regulate wages, hours, benefits and other terms and conditions 
relating to employment. At December 31, 2022, certain employees at 37 of our domestic hospitals are represented by 
various  labor  unions.  No  union  elections  occurred  at  any  of  our  domestic  facilities  in  2022.  While  no  elections  are 
scheduled in 2023, it is possible that employees at additional hospitals may unionize in the future, or employees currently 
represented by labor unions may choose to reject that representation. We have not experienced work stoppages that have 
materially, adversely affected our business or results of operations. However, it is possible that a material work stoppage 
at one or more of our hospitals may occur in the future. 

Physicians are an integral part of the success of our hospitals in delivering quality care to our patients. Our hospitals 
are staffed by licensed physicians, including both employed physicians and physicians who are not employees of our 
hospitals. Some physicians provide services in our hospitals under contracts, which generally describe a term of service, 
provide and establish the duties and obligations of such physicians, require the maintenance of certain performance criteria 
and set compensation for such services. Any licensed physician may apply to be accepted to the medical staff of any of 
our hospitals, but the hospital’s medical staff and the appropriate governing board of the hospital, in accordance with 
established credentialing criteria, must approve acceptance to the staff. Members of the medical staffs of our hospitals 
often also serve on the medical staffs of other hospitals and may terminate their affiliation with one of our hospitals at 
any time. 

Our facilities, like most health care facilities, have experienced rising labor costs and turnover. In some markets, 
nurse and medical support personnel availability and retention have become significant operating issues for health care 
providers, including the Company. These challenges have been exacerbated by the effects that COVID-19 has had on 
health care personnel. Nurse and medical support shortages have resulted in a number of adverse impacts to our business, 
including capacity and growth constraints, reduced patient satisfaction, reduced physician satisfaction, impact on services 
offered and increased costs, among others. To address this challenge, we have implemented several initiatives to improve 
retention, recruiting, compensation programs and productivity. 

We may be required to continue to enhance wages and benefits to recruit and retain nurses and other medical support 
personnel and to utilize more expensive temporary or contract personnel. As a result, our labor costs could continue to 
increase at rates in excess of historical levels. We also depend on the available labor pool of employees in each of the 
markets in which we operate to fill other necessary positions. If there is additional union organizing activity or a significant 
portion  of  our  employee  base  unionizes,  our  costs  could  increase.  In  addition,  we  operate  in  several  states  that  have 
adopted mandatory nurse-staffing ratios, mandate staffing committees to develop staffing plans or require public reporting 
of nurse staffing levels. If these states reduce mandatory nurse to patient ratios or additional states in which we operate 
adopt mandatory nurse to patient ratios, such changes could significantly affect labor costs and have an adverse impact 
on revenues if we are required to limit patient admissions in order to meet the required ratios. 

The inability to attract, retain and utilize sufficient, quality clinical and non-clinical personnel could impair our 

capacity, ability to grow and our results of operations. 

30
 

Information about our Executive Officers 

As of February 1, 2023, our executive officers were as follows: 

Name 
Samuel N. Hazen
Erol R. Akdamar
Jennifer L. Berres 
Phillip G. Billington 
Jeff E. Cohen 
Michael S. Cuffe, M.D. 
Jon M. Foster
Richard A. Hammett
Michael A. Marks
Michael R. McAlevey 
Timothy M. McManus.
Sammie S. Mosier 
P. Martin Paslick 
Deborah M. Reiner 
William B. Rutherford
Joseph A. Sowell, III 
Kathryn A. Torres
Kathleen M. Whalen
Christopher F. Wyatt 

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Age  Position(s) 
62  Chief Executive Officer and Director
  
55  President — American Group
  
52  Senior Vice President and Chief Human Resources Officer
 
55  Senior Vice President — Internal Audit Services
  
51  Senior Vice President — Government Relations
  
57  Executive Vice President and Chief Clinical Officer
 
61  Executive Vice President and Chief Operating Officer
  
53  President — Atlantic Group
  
53  Senior Vice President — Finance
 
59  Senior Vice President and Chief Legal Officer
  
51  President — National Group
 
48  Senior Vice President and Chief Nurse Executive
 
63  Senior Vice President and Chief Information Officer
  
61  Senior Vice President — Marketing and Communications
 
59  Executive Vice President and Chief Financial Officer
  
66  Senior Vice President and Chief Development Officer
 
59  Senior Vice President — Payer Contracting and Alignment
 
59  Senior Vice President and Chief Ethics and Compliance Officer
 
45  Senior Vice President and Controller
 

Samuel N. Hazen has served as Chief Executive Officer since January 2019 and was appointed as a director in 
September 2018. From November 2016 through December 2018, Mr. Hazen served as the Company’s President and Chief 
Operating Officer. Prior to that, he served as Chief Operating Officer of the Company from January 2015 to November 
2016 and as President — Operations of the Company from 2011 to 2015. He also served as President — Western Group 
from 2001 to 2011 and as Chief Financial Officer — Western Group of the Company from 1995 to 2001. Prior to that 
time, Mr. Hazen served in various hospital, regional and division Chief Financial Officer positions with the Company, 
Humana Inc. and Galen Health Care, Inc. 

Erol R. Akdamar was appointed President – American Group effective January 1, 2023. Mr. Akdamar previously 
served as President of the North Texas Division from October 2013 to December 2022. Prior to that, he served as CEO 
of Medical City Dallas Hospital in Dallas, Texas from 2010 to 2013 and CEO of St. David’s South Austin Medical Center 
in Austin, Texas from 2004 to 2010. Mr. Akdamar began his career with HCA in 1993 with Rapides Regional Medical 
Center. 

Jennifer L. Berres was appointed Senior Vice President and Chief Human Resources Officer effective November 
1,  2019.  Ms.  Berres  joined  HCA  in  1993  and  served  in  various  capacities,  including  as  Vice  President  —  Human 
Resources from April 2013 through October 2019. 

Phillip G. Billington was appointed Senior Vice President — Internal Audit Services effective January 1, 2019. Mr. 
Billington previously served as Vice President — Corporate Internal Audit from June 2005 to December 2018. Prior to 
joining HCA, Mr. Billington worked as a managing director for FTI Consulting, Inc., a director for KPMG LLP and was 
a senior manager at Arthur Andersen LLP. 

Jeff E. Cohen was appointed Senior Vice President — Government Relations effective October 1, 2019. Prior to 
joining HCA, Mr. Cohen spent 20 years with the Federation of American Hospitals, most recently as Executive Vice 
President of Public Affairs, where he managed all advocacy, public affairs and communications for the association. 

Michael S. Cuffe, M.D. was appointed Executive Vice President and Chief Clinical Officer effective January 1, 
2022. He previously served as President — Physician Services Group from October 2011 through December 2021. From 
October 2011 to January 2015, Dr. Cuffe also served as a Vice President of the Company. Prior to that time, Dr. Cuffe 
served Duke University Health System as Vice President for Ambulatory Services and Chief Medical Officer from March 
2011 to October 2011 and Vice President Medical Affairs from June 2005 to March 2011. He also served Duke University 
School of Medicine as Vice Dean for Medical Affairs from June 2008 to March 2011, Deputy Chair of the Department 
of Medicine from August 2009 to August 2010 and Associate Professor of Medicine from March 2005 to October 2011. 
Prior that time, Dr. Cuffe served in various leadership roles with the Duke Clinical Research Institute, Duke University 
Medical Center and Duke University School of Medicine. 

31
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Jon M. Foster was appointed Executive Vice President and Chief Operating Officer effective January 1, 2023. Prior 
to that time, he served as President — American Group from January 2013 to December 2022, President — Southwest 
Group from February 2011 to January 2013 and Division President for the Central and West Texas Division from January 
2006 to February 2011. Mr. Foster joined HCA in March 2001 as President and CEO of St. David’s HealthCare in Austin, 
Texas  and  served  in  that  position  until  February  2011.  Prior  to  joining  the  Company,  Mr.  Foster  served  in  various 
executive capacities within the Baptist Health System in Knoxville, Tennessee and The Methodist Hospital System in 
Houston, Texas. 

Richard A. Hammett was appointed President — Atlantic Group effective January 1, 2023. Mr. Hammett previously 
served as President of the North Florida Division from June 2020 to December 2022. Prior to that, he served as President 
and CEO of Swedish Medical Center in Englewood, Colorado from 2015 to 2020. Prior to that time, Mr. Hammett held 
numerous leadership positions within HCA Healthcare, including serving as president and chief executive officer of The 
Medical Center of Aurora in Aurora, Colorado and chief operating officer and interim CEO of St. David's Medical Center 
in Austin, Texas. 

Michael A. Marks was appointed Senior Vice President — Finance effective January 1, 2023. Mr. Marks previously 
served as Vice President — Financial Operations Support from March 2021 to December 2022. Prior to that time, he 
served as CFO of the National Group from December 2008 to February 2021 and CFO of the West Florida Division from 
January 2006 to November 2008. Mr. Marks joined HCA Healthcare in 1996. 

Michael R. McAlevey was appointed Senior Vice President and Chief Legal Officer in January 2022. Prior to joining 
HCA,  Mr.  McAlevey  served  in  senior  legal  and  executive  roles  at  General  Electric,  most  recently  as  Vice  President, 
General Counsel and Business Development Leader for GE Healthcare since 2018. Prior to that, he served as General 
Counsel  and  Business  Development  Leader  for  GE  Aviation  from  2011  to  2018  and  Chief  Corporate,  Securities  and 
Finance Counsel for GE from 2003 to 2011. Before joining GE, Mr. McAlevey served as Deputy Director of the United 
States Securities and Exchange Commission’s Division of Corporation Finance from 1998 to 2002. 

Timothy  M.  McManus  was  appointed  President  —  National  Group  effective  January  1,  2023.  Mr.  McManus 
previously served as President of the Capital Division from August 2016 to December 2022. Mr. McManus joined HCA 
Healthcare in 2007 and served as CEO of Chippenham and Johnston-Willis Medical Center in Richmond, Virginia from 
June 2012 to July 2016, CEO of Reston Medical Center in Reston, Virginia from June 2010 to June 2012 and CEO of 
Garden Park Medical Center in Gulfport, Mississippi from September 2007 to May 2010. 

Sammie S. Mosier was appointed Senior Vice President and Chief Nurse Executive effective December 1, 2021. 
Dr. Mosier joined HCA in 1992 as a medical-surgical bedside nurse at Frankfort Regional Medical Center and has held 
progressive  leadership  roles,  including  as  Vice  President  and  Assistant  Chief  Nursing  Executive  —  Clinical  Services 
Group from 2019 to 2021. 

P. Martin Paslick was appointed Senior Vice President and Chief Information Officer in June 2012. Prior to that 
time, he served as Vice President and Chief Operating Officer of Information Technology & Services from March 2010 
to  May  2012  and  Vice  President  —  Information  Technology  &  Services  Field  Operations  from  September  2006  to 
February  2010.  From  January  1998  to  September  2006,  he  served  in  various  Vice  President  roles  in  the  Company’s 
Information Technology & Services department. Mr. Paslick joined the Company in 1985. 

Deborah M. Reiner was appointed Senior Vice President — Marketing and Communications in October 2017. Prior 
to that time, she served as Vice President of Marketing and Customer Relationship Management from August 2017 to 
October 2017 and Vice President of Customer Relationship Management from January 2012 to August 2017. Ms. Reiner 
joined the Company in 2000 and served in various roles with the Company’s Mountain Division from 2000 to 2012. 

William B. Rutherford has served as Executive Vice President and Chief Financial Officer since January 2014. Mr. 
Rutherford previously served as Chief Operating Officer of the Company’s Clinical and Physician Services Group from 
January 2011 to January 2014 and Chief Financial Officer of the Company’s Outpatient Services Group from November 
2008 to January 2011. Prior to that time, Mr. Rutherford was employed by Summit Consulting Group of Tennessee from 
July 2007 to November 2008 and was Chief Operating Officer of Psychiatric Solutions, Inc. from March 2006 to June 
2007. Mr. Rutherford also previously served in various positions with the Company from 1986 to 2005, including Chief 
Financial Officer of what was then the Company’s Eastern Group, Director of Internal Audit and Director of Operations 
Support. 

Joseph A. Sowell, III was appointed as Senior Vice President and Chief Development Officer in December 2009. 
From 1987 to 1996 and again from 1999 to 2009, Mr. Sowell was a partner at the law firm of Waller Lansden Dortch & 
Davis  where  he  specialized  in  the  areas  of  health  care  law,  mergers  and  acquisitions,  joint  ventures,  private  equity 

32
 

financing,  tax  law  and  general  corporate  law.  He  also  co-managed  the  firm’s  corporate  and  commercial  transactions 
practice. From 1996 to 1999, Mr. Sowell served as the head of development, and later as the Chief Operating Officer of 
Arcon Healthcare. 

Kathryn A. Torres was appointed Senior Vice President — Payer Contracting and Alignment (formerly Senior Vice 
President  —  Employer  and  Payer  Engagement)  in  July  2016.  Ms.  Torres  joined  HCA  in  1993  and  served  in  various 
capacities, including as Vice President of Employer and Payer Engagement and Vice President — Strategy. 

Kathleen  M.  Whalen  was  appointed  Senior  Vice  President  and  Chief  Ethics  and  Compliance  Officer  effective 
January 1, 2019. Prior to that time, Ms. Whalen served as Vice President — Ethics and Compliance from August 2013 
through December 2018 and Assistant Vice President — Ethics and Compliance Program Development from March 2000 
through July 2013. Prior to joining HCA in January 1998, Ms. Whalen served as Associate Counsel to President Clinton 
with responsibility for the White House’s ethics program. She began her government service in the ethics division of the 
General Counsel’s Office at the U.S. Commerce Department. Prior to that, she practiced labor and employment law in 
Dayton, Ohio. 

Christopher F. Wyatt was appointed Senior Vice President and Controller in April 2016. Prior to that time, Mr. 
Wyatt served the Company as Vice President and Chief Financial Officer — IT&S from January 2013 to April 2016 and 
Chief Financial Officer — Clinical Services Group from October 2010 until January 2013. From 2000 to 2010, Mr. Wyatt 
served in various capacities with Ernst & Young LLP. 

Item 1A. Risk Factors 

If any of the events discussed in the following risk factors were to occur, our business, financial position, results of 
operations,  cash  flows  or  prospects  could  be  materially,  adversely  affected.  Additional  risks  and  uncertainties  not 
presently known to us or that we currently deem immaterial may also affect us. COVID-19 amplifies and exacerbates 
many of the risks we face in our business operations, including those discussed below. Our business is subject to the 
following material risks and uncertainties. 

Risks related to COVID-19 and other potential pandemics: 
COVID-19 has affected, and may continue to affect, our operations. Further, COVID-19 could negatively impact our 
business,  financial  condition,  and  cash  flows,  particularly  if  it  causes  public  health  conditions  and/or  economic 
conditions to deteriorate. 

As a front-line provider of health care services, we have been and continue to be affected by the health and economic 
effects of COVID-19. Although vaccines and booster shots for the virus causing COVID-19 are widely available in the 
United States, COVID-19 has continued to result in a significant number of hospitalizations. COVID-19 continues to 
evolve, including as a result of mutations of the virus. Due to the concentration of our hospitals in Florida and Texas, we 
may  be  particularly  sensitive  to  increases  in  COVID-19  cases  in  those  states,  where  COVID-19  could  have  a 
disproportionate effect on our business. The extent to which COVID-19 will continue to impact our business, results of 
operations,  financial  condition  and  liquidity  will  depend  on  future  developments  that  are  uncertain  and  cannot  be 
accurately predicted. We are unable to predict the severity or duration of impacts related to COVID-19, including direct 
or indirect impacts on macroeconomic conditions. 

We continue to work with federal, state and local health authorities to respond to COVID-19 cases in the markets 
we serve and continue to take and support measures to try to limit the spread of the virus and to mitigate the burden on 
the health care system. We expect to continue to incur additional costs, which may be significant, as a result of operational 
changes  in  response  to  COVID-19.  Further,  our  response  to  COVID-19  has  required  and  may  continue  to  require  a 
substantial investment of management’s time and resources across our enterprise, which may affect our ability to properly 
prioritize and successfully execute on the Company’s strategic initiatives. 

We have implemented considerable safety measures within our hospitals and other facilities in response to COVID-
19. Nonetheless, treatment of COVID-19 patients has associated risks, which may include the manner in which patients 
and  our  physicians  and  clinical  staff  perceive  and  respond  to  such  risks.  These  risks  may  result  in  reduced  operating 
capacity, impaired employee morale and increased exposure to workforce disruptions. Furthermore, we have experienced 
and  may  continue  to  experience  supply  chain  disruptions,  including  delays  and  price  increases  in  equipment, 
pharmaceuticals and medical supplies and supply shortages. Continued constraints on staffing and equipment, laboratory 
resources and pharmaceutical and medical supplies shortages may impact our ability to schedule, admit and treat patients. 
In addition, we may be subject to claims from patients, employees and others exposed to COVID-19 at our facilities. Such 
actions may involve large demands, as well as substantial defense costs. Our insurance, a portion of which is provided 
through our insurance subsidiaries, may not cover all claims against us. 

33
 

Our  operations  and  financial  performance  have  been,  and  may  continue  to  be,  affected  by  actions  taken  by 
governmental authorities in response to COVID-19. Some of these measures, such as restrictions on elective procedures, 
reduced, and may in the future reduce, the volume of procedures performed at our facilities, as well as the volume of 
emergency room and physician office visits unrelated to COVID-19. Moreover, we believe that some individuals have 
elected to postpone medical care for an undetermined period of time as a result of COVID-19, impacting patient volumes 
in  comparison  to  pre-pandemic levels.  While  patient  volumes  began  rebounding in  the second  quarter  of 2021 as the 
effects of COVID-19 moderated and pandemic-related restrictions and policies were eased, we experienced a resurgence 
in COVID-19 cases in the latter half of 2021 and early 2022, further impacting the return to pre-pandemic levels. We 
cannot provide assurances as to the continued recovery and stability of pre-pandemic patient volumes or the ultimate 
impact on demand. Further, our patient volumes may be adversely impacted by the expanded use of telehealth services 
from other providers as a result of reduced regulatory barriers on the use and reimbursement of telehealth services and 
individuals becoming more comfortable with receiving remote care. The Company may not be able to timely innovate its 
strategies and technologies to meet changing consumer demands as a result of COVID-19. It is possible that COVID-19 
could continue to impact patient behavior in future periods. 

Beginning in 2020 and continuing through 2022, we experienced increased patient acuity as a result of COVID-19 
cases at our hospitals, which led to increased reimbursements. However, the impacts of COVID-19, including patient 
acuity  levels,  in  future  periods  may  vary,  and  could  exert  unpredictable  and  potentially  negative  effects  on  clinical 
performance metrics that impact reimbursement levels and could adversely affect our results of operations. 

Developments  related  to  COVID-19,  including  broad  economic  factors  related  to  COVID-19  and  public  health 
conditions, may have a material, adverse effect on our business, results of operations, financial position and cash flows. 
The ongoing impact of COVID-19 on our business will depend on, among other factors, the duration and severity of any 
severe or widespread outbreaks of COVID-19; the impact of COVID-19 on economic conditions; the volume of canceled 
or rescheduled procedures at our facilities; the volume of COVID-19 patients cared for across our health systems; the 
availability,  acceptance  of,  and  need  for  effective  vaccines  and  medical  treatments;  the  spread  of  potentially  more 
contagious and/or virulent forms of the virus; and the impact of government actions on the health care industry and broader 
economy.  COVID-19  continues  to  evolve,  and  we  may  not  be  able  to  predict  or  effectively  respond  to  future 
developments. 

The foregoing and other continued disruptions to our business as a result of COVID-19 could heighten the risks in 
certain of the other risk factors described in this annual report on Form 10-K, any of which could have a material, adverse 
effect on our results of operations and financial position. 

We are unable to predict the ultimate impact of the CARES Act and other stimulus and relief legislation or the effect 
that such legislation and other governmental responses intended to assist providers in responding to COVID-19 may 
have on our business, financial condition, results of operations or cash flows. 

In  response  to  COVID-19,  federal  and  state  governments  have  passed  legislation,  promulgated  regulations  and 
taken  other  administrative  actions  intended  to  assist  health  care  providers  in  providing  care  to  COVID-19  and  other 
patients  and  to  provide  financial  relief  to  health  care  providers.  Together,  the  CARES  Act,  the  Paycheck  Protection 
Program and Health Care Enhancement (“PPPHCE”) Act, the Consolidated Appropriations Act, 2021 (“CAA”) and the 
ARPA authorized over $186 billion in funding to be distributed to hospitals and other health care providers through the 
Public Health and Social Services Emergency Fund (“PHSSEF”), also known as the Provider Relief Fund, and expanded 
the Medicare Accelerated and Advance Payment Program. Funds from the Provider Relief Fund are intended to reimburse 
eligible providers and suppliers for health care-related expenses or lost revenues attributable to COVID-19 and are not 
required to be repaid, provided that recipients attest to and comply with certain terms and conditions. In addition, a portion 
of the available funding was distributed to reimburse health care providers that submitted claims requests for COVID-19-
related treatment, testing and vaccine administration for uninsured patients at Medicare rates. Recipients of these claims 
reimbursements  must  attest  to  and  comply  with  certain  terms  and  conditions,  including  confirming  that  patients  are 
uninsured,  limitations  on  balance  billings  and  not  using  funds  to  reimburse  expenses  or  losses  that  other  sources  are 
obligated to reimburse. We received general and targeted distributions from the Provider Relief Fund in 2020, but during 
the fourth quarter of 2020, we returned or repaid early approximately $6.1 billion of our share of the Provider Relief Fund 
distributions and all Medicare accelerated payments. 

The CARES Act and related legislation have also made other forms of financial assistance available to health care 
providers. For example, CMS has increased payment under the hospital inpatient PPS by 20% for discharges of individuals 
diagnosed with COVID-19 and provides an add-on payment for eligible inpatient cases that use certain new products to 
treat COVID-19. 

The CARES Act and related legislation temporarily suspended the Medicare sequestration payment adjustment, 
which would have otherwise reduced payments to Medicare providers by 2% as required by the BCA. The sequestration 

34
 

adjustment was phased back in with a 1% reduction beginning April 1, 2022, and returned to 2% on July 1, 2022. The 
BCA sequestration has been extended through the first six months of 2032. The APRA, in addition to providing funding 
for health care providers, increased the federal budget deficit in a manner that triggers an additional statutorily mandated 
sequestration under the PAYGO Act. As a result, an additional Medicare payment reduction of up to 4% was required to 
take effect in January 2022. However, Congress has delayed implementation of this payment reduction until 2025. 

Beyond financial assistance, federal and state governments have enacted legislation, established regulations and 
issued waivers intended to expand access to and payment for telehealth services, increase access to medical supplies and 
equipment, prioritize review of drug applications to help with shortages of emergency drugs, and ease various legal and 
regulatory burdens on health care providers. HHS and CMS have announced other flexibilities for health care providers 
in response to COVID-19, such as temporary modifications of certain value-based care programs, implementing special 
scoring and payment policies intended to mitigate negative effects of the PHE on providers participating in some of these 
programs. It is unclear how these changes will affect our financial condition. 

COVID-19  continues  to  evolve,  and  there  is  uncertainty  regarding  the  ultimate  impact  to  our  business  of 
governmental efforts to assist health care providers responding to and otherwise affected by COVID-19. As the United 
States has experienced a moderation of infection and related hospitalization rates in comparison to earlier periods, federal 
and state governments have shifted to reducing or terminating certain temporary measures that were implemented earlier 
in the COVID-19 PHE. Many of the measures allowing for flexibility in delivery of care and various financial supports 
for health care providers are available only until funds expire or for the duration of the PHE. The current PHE declared 
by HHS expires May 11, 2023. The presidential administration has indicated that the public health emergency will not be 
extended. Termination of the PHE may impact our operations and financial results. Further, there can be no assurance 
that the terms and conditions of relief programs will not change or be interpreted in ways that affect our ability to comply 
with such terms and conditions, including in cases where our partners have retained such assistance. We continue to assess 
the  potential  impact  of  COVID-19  and  government  responses  to  COVID-19  on  our  business,  results  of  operations, 
financial condition and cash flows. 

The emergence and effects related to a potential future pandemic, epidemic or outbreak of an infectious disease could 
adversely affect our operations. 

If a pandemic, epidemic, outbreak of an infectious disease or other public health crisis were to occur in an area in 
which we operate, our operations could be adversely affected. Such a crisis could diminish the public trust in health care 
facilities, especially hospitals that fail to accurately or timely diagnose, or are treating (or have treated) patients affected 
by infectious diseases. If any of our facilities were involved, or perceived as being involved, in treating patients from such 
an  infectious  disease,  patients  might  cancel  elective  procedures  or  fail  to  seek  needed  care  at  our  facilities,  and  our 
reputation may be negatively affected. Patient volumes may decline or volumes of uninsured and underinsured patients 
may  increase,  depending  on  the  economic  circumstances  surrounding  the  pandemic,  epidemic  or  outbreak.  Further,  a 
pandemic, epidemic or outbreak might adversely affect our operations by causing a temporary shutdown or diversion of 
patients, disrupting or delaying production and delivery of materials and products in the supply chain or causing staffing 
shortages in our facilities. We have disaster plans in place and operate pursuant to infectious disease protocols, but the 
potential emergence of a pandemic, epidemic or outbreak, as well as the public’s and the government’s response to the 
pandemic, epidemic or outbreak, is difficult to predict and could adversely affect our operations. 

Risks related to our indebtedness: 
Our substantial leverage could adversely affect our ability to raise additional capital to fund our operations, limit our 
ability to react to changes in the economy or our industry, expose us to interest rate risk to the extent of our variable 
rate debt and prevent us from meeting our obligations. 

We are highly leveraged. As of December 31, 2022, our total indebtedness was $38.084 billion. As of December 
31, 2022, we had availability of $1.935 billion under our senior secured cash flow credit facility and $1.600 billion under 
our  senior  secured  asset-based  revolving  credit  facility,  after  giving  effect  to  letters  of  credit  and  borrowing  base 
limitations. Our high degree of leverage could have important consequences, some of which may be exacerbated by the 
impact of COVID-19, including: 

•	 

•	 

increasing our vulnerability to downturns or adverse changes in general economic, industry or competitive 
conditions and adverse changes in government regulations; 
requiring a substantial portion of cash flows from operations to be dedicated to the payment of principal and 
interest on our indebtedness, therefore reducing our ability to use our cash flows to fund our operations, 
capital expenditures and future business opportunities; 

35
 

•	 

•	 
•	 

•	 

exposing us to the risk of increased interest rates on our existing borrowings that are at variable rates of 
interest or refinancing our debt in a rising rate environment; 
limiting our ability to make strategic acquisitions or causing us to make nonstrategic divestitures; 
limiting  our  ability  to  obtain  additional  financing  for  working  capital,  capital  expenditures,  share 
repurchases, dividends, product or service line development, debt service requirements, acquisitions and 
general corporate or other purposes; and 
limiting our ability to adjust to changing market conditions and placing us at a competitive disadvantage 
compared to our competitors who are less highly leveraged. 

We and our subsidiaries have the ability to incur additional indebtedness in the future, subject to the restrictions 
contained in our senior secured credit facilities and the indentures governing our outstanding notes. If new indebtedness 
is added to our current debt levels, interest rates and the related risks that we now face could intensify. 

We may not be able to generate sufficient cash to service all of our indebtedness and may not be able to refinance our 
indebtedness  on  favorable  terms.  If  we  are  unable  to  do  so,  we  may  be  forced  to  take  other  actions  to  satisfy  our 
obligations under our indebtedness, which may not be successful. 

Our ability to make scheduled payments on or to refinance our debt obligations depends on our financial condition 
and operating performance, which are subject to prevailing economic and competitive conditions, including the impact 
of COVID-19, and to certain financial, business and other factors beyond our control. We cannot assure you we will 
maintain a level of cash flows from operating activities sufficient to permit us to pay the principal, premium, if any, and 
interest on our indebtedness. 

In addition, we conduct our operations through our subsidiaries. Accordingly, repayment of our indebtedness is 
dependent  on  the  generation  of  cash  flows  by  our  subsidiaries  and  their  ability  to  make  such  cash  available  to  us  by 
dividend, debt repayment or otherwise. Our subsidiaries may not be able to, or may not be permitted to, make distributions 
to enable us to make payments in respect of our indebtedness. Each subsidiary is a distinct legal entity, and, under certain 
circumstances, legal and contractual restrictions may limit our ability to obtain cash from our subsidiaries. 

We may find it necessary or prudent to refinance our outstanding indebtedness, the terms of which may not be 
favorable to us. Our ability to refinance our indebtedness on favorable terms, or at all, is directly affected by the then 
current global economic and financial conditions which affect the availability of debt financing and the rates at which 
such financing is available. In addition, our ability to incur secured indebtedness depends in part on the value of our assets, 
which depends, in turn, on the strength of our cash flows and results of operations, and on economic and market conditions 
and other factors. 

If our cash flows and capital resources are insufficient to fund our debt service obligations or we are unable to 
refinance our indebtedness, we may be forced to reduce or delay investments and capital expenditures, or to sell assets, 
seek additional capital or restructure our indebtedness. These alternative measures may not be successful and may not 
permit us to meet our scheduled debt service obligations. If our operating results and available cash are insufficient to 
meet  our  debt  service  obligations,  we  could  face  substantial  liquidity  problems  and  might  be  required  to  dispose  of 
material assets or operations to meet our debt service and other obligations. We may not be able to consummate those 
dispositions, or the proceeds from the dispositions may not be adequate to meet any debt service obligations then due. 

Our debt agreements contain restrictions that limit our flexibility in operating our business. 

Our senior secured credit facilities and, to a lesser extent, the indentures governing our outstanding notes contain 
various covenants that limit our ability to engage in specified types of transactions. These covenants limit our and certain 
of our subsidiaries’ ability to, among other things: 

•	 
•	 

incur additional indebtedness or issue certain preferred shares; 
pay dividends on, repurchase or make distributions in respect of our capital stock or make other restricted 
payments; 

•	  make certain investments; 
sell or transfer assets; 
•	 
create liens; 
•	 
consolidate, merge, sell or otherwise dispose of all or substantially all of our assets; and 
•	 
enter into certain transactions with our affiliates. 
•	 

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Under our asset-based revolving credit facility, borrowing availability is subject to a borrowing base of 85% of 
eligible accounts receivable less customary reserves, with any reduction in the borrowing base commensurately reducing 
our ability to access this facility as a source of liquidity. In addition, under the asset-based revolving credit facility, when 
(and for as long as) the combined availability under our asset-based revolving credit facility and the revolving facility 
under  our  senior  secured  cash  flow  credit  facility  is  less  than  a  specified  amount  for  a  certain  period  of  time  or,  if  a 
payment  or  bankruptcy  event  of  default  has  occurred  and  is  continuing,  funds  deposited  into  any  of  our  depository 
accounts will be transferred on a daily basis into a blocked account with the administrative agent and applied to prepay 
loans under the asset-based revolving credit facility and to collateralize letters of credit issued thereunder. 

Under our senior secured credit facilities, we are required to satisfy and maintain specified financial ratios. Our 
ability to meet those financial ratios may be affected by events beyond our control, and there can be no assurance we will 
continue to meet those ratios. A breach of any of these covenants could result in a default under both the cash flow credit 
facility and the asset-based revolving credit facility. Upon the occurrence of an event of default under these senior secured 
credit  facilities,  the  lenders  thereunder  could  elect  to  declare  all  amounts  outstanding  under  the  senior  secured  credit 
facilities to be immediately due and payable and terminate all commitments to extend further credit, which would also 
result in an event of default under a significant portion of our other outstanding indebtedness. If we were unable to repay 
those amounts, the lenders under the senior secured credit facilities could proceed against the collateral granted to them 
to secure such indebtedness. We have pledged a significant portion of our assets under our senior secured credit facilities. 
If any of the lenders under the senior secured credit facilities accelerate the repayment of borrowings, there can be no 
assurance there will be sufficient assets to repay the senior secured credit facilities and our other indebtedness. 

Risks related to human capital: 
Our results of operations may be adversely affected by competition for staffing, the shortage of experienced nurses 
and other health care professionals and labor union activity. 

Our  operations  are  dependent  on  the  efforts,  abilities  and  experience  of  our  management  and  medical  support 
personnel, such as nurses, pharmacists and lab technicians, as well as our physicians. We compete with other health care 
providers in recruiting and retaining qualified management and personnel responsible for the daily operations of each of 
our hospitals and other facilities, including nurses and other nonphysician health care professionals. In some markets, the 
availability of nurses and other medical support personnel has been a significant operating issue to health care providers, 
including at certain of our facilities. The impact of labor shortages across the health care industry may result in other 
health care facilities, such as nursing homes, limiting admissions, which may constrain our ability to discharge patients 
to such facilities and further exacerbate the demand on our resources, supplies and staffing. 

COVID-19 has exacerbated workforce competition, shortages and capacity restraints, including due to the impact 
of vaccine mandates on our workforce, and may continue to exacerbate workforce competition, shortages and capacity 
constraints beyond the duration of COVID-19. We may be required to continue to enhance wages and benefits to recruit 
and retain nurses and other medical support personnel and to hire more expensive temporary or contract personnel. As a 
result of shortages, competition and inflationary pressures, our labor costs could continue to increase and/or our capacity 
could be negatively impacted. We also depend on the available labor pool of employees in each of the markets in which 
we operate to fill other necessary positions. If there is continued competition for these employees or additional union 
organizing activity or a significant portion of our employee base unionizes, it is possible our labor costs could increase. 
When negotiating collective bargaining agreements with unions, whether such agreements are renewals or first contracts, 
there is the possibility that strikes could occur during the negotiation process, and our continued operation during any 
strikes could increase our labor costs. The unavailability of staff, or the inability of the Company to control labor costs, 
could have a material, adverse effect on our capacity, growth prospects and results of operations. 

In addition, federal and state laws and regulations may increase our costs of maintaining qualified nurses and other 
medical  support  personnel.  We  operate  in  several  states  that  have  adopted  mandatory  nurse-staffing  ratios,  mandate 
staffing committees to develop staffing plans, or require public reporting of nurse staffing levels. If these states reduce, 
or if additional states in which we operate adopt, mandatory nurse-staffing ratios or related measures, such changes could 
significantly affect labor costs and have an adverse impact on revenues if we are required to limit admissions in order to 
meet the required ratios. If our labor costs continue to increase, we may not be able to offset these increased costs as a 
significant percentage of our revenues consists of fixed, prospective payments. 

We may be unable to attract, hire and retain a highly qualified and diverse workforce, including key management. 

The  talents  and  efforts  of  our  employees,  particularly  our  key  management,  are  vital  to  our  success.  Our 
management  team  has  significant  industry  experience  and  would  be  difficult  to  replace.  In  addition,  institutional 
knowledge may be lost in any potential managerial transition. We may be unable to retain them or to attract other highly 
qualified  employees,  particularly  if  we  do  not  offer  employment  terms  that  are  competitive  with  the  rest  of  the  labor 
market. Our management is focused on mitigating the impact of COVID-19, which has required and will continue to 

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require a substantial investment of time and resources across our enterprise. Failure to attract, hire, develop, motivate, and 
retain highly qualified and diverse employee talent, or failure to develop and implement an adequate succession plan for 
the management team, could disrupt our operations and adversely affect our business and our future success. 

Our performance depends on our ability to recruit and retain quality physicians. 

The success of our hospitals depends in part on the number and quality of the physicians on the medical staffs of 
our hospitals, the admitting and utilization practices of those physicians, maintaining good relations with those physicians 
and controlling costs related to the employment of physicians. Although we employ some physicians, physicians are often 
not  employees  of  the  hospitals  at  which  they  practice,  and,  in  many  of  the  markets  we  serve,  physicians  may  have 
admitting privileges at other hospitals in addition to our hospitals. We continue to face increasing competition to recruit 
and retain quality physicians, as well as increasing cost to contract with hospital-based physicians. Such physicians may 
terminate their affiliation with our hospitals at any time. We anticipate facing increased challenges in this area as the 
physician population reaches retirement age, especially if there is a shortage of physicians willing and able to provide 
comparable services. If we are unable to recruit and retain quality physicians to affiliate with our hospitals or adequately 
contract with hospital-based physicians, our admissions may decrease, our operating performance may decline, and our 
capacity  and  growth  prospects  may  be  materially  adversely  affected.  If  we  are  unable  to  provide  adequate  support 
personnel or technologically advanced equipment and hospital facilities that meet the needs of those physicians and their 
patients, they may be discouraged from referring patients to our facilities, admissions may decrease and our operating 
performance may decline. 

Risks related to technology, data privacy and cybersecurity: 

A cybersecurity incident or other form of data breach could result in the compromise of our facilities, confidential 
data or critical data systems. A cybersecurity incident or other form of data breach could also give rise to potential 
harm to patients; remediation and other expenses; and exposure to liability under HIPAA, consumer protection laws, 
common  law  theories  or  other  laws.  Such  incidents  could  subject  us  to  litigation  and  foreign,  federal  and  state 
governmental inquiries, damage our reputation, and otherwise be disruptive to our business. 

We, directly and through our vendors and other third parties, collect and store on our networks and devices and 
third-party technology platforms sensitive information, including intellectual property, proprietary business information 
and  personally  identifiable  information  of  our  patients  and  employees.  We  have  made  significant  investments  in 
technology to adopt and meaningfully use EHR and in the use of medical devices that store sensitive data and are integral 
to the provision of patient care and to protect our systems, software, equipment, devices and data from cybersecurity risks. 
In addition, medical devices manufactured by third parties that are used within our facilities are increasingly connected 
to the internet, hospital networks and other medical devices. The secure maintenance of this information and technology 
is  critical  to  our  business  operations.  We  have  implemented  multiple  layers  of  security  measures  to  protect  the 
confidentiality, integrity and availability of this data and the systems and devices that store and transmit such data. We 
embed security measures into software and system development processes and utilize current security technologies, and 
our defenses are monitored and routinely tested internally and by external parties. We vet the security and integrity of 
third-party  technology  platforms  hosting  infrastructure,  applications,  and  data  supporting  our  operations,  and  set 
contractual terms holding them to our security standards. 

Despite these efforts, even the most advanced internal control environment is vulnerable to compromise. Threats 
from  malicious  persons  and  groups,  new  vulnerabilities  and  advanced  new  attacks  against  information  systems  and 
devices against us or our vendors and other third parties create risk of cybersecurity incidents, including ransomware, 
malware and phishing incidents. We have seen, and believe we will continue to see, widely spread vulnerabilities that 
could  affect  our  or  other  parties’  systems.  Mitigation  and  remediation  recommendations  continue  to  evolve,  and 
addressing this and other critical vulnerabilities is a priority for us. The volume and intensity of cyberattacks on hospitals, 
health systems and other health care entities continue to increase. We are regularly the target of attempted cybersecurity 
and other threats that could have a security impact, including those by third parties to access, misappropriate or manipulate 
our information or disrupt our operations, and we expect to continue to experience an increase in cybersecurity threats in 
the future. While we are periodically exposed to such threats and expect them to continue, we have not experienced any 
material losses or other material consequences relating to technology failure, cyberattacks or other information or security 
incidents, whether directed at us or third parties. Internal access management failures could result in the compromise or 
unauthorized  exposure  of  confidential  data.  Moreover,  hardware,  software  or  applications  we  use  may  have  inherent 
vulnerabilities or defects of design, manufacture or operations or could be inadvertently or intentionally implemented or 
used in a manner that could compromise information security. There can be no assurance that we or our vendors and other 
third parties will not be subject to cybersecurity threats and incidents that bypass our or their security measures, impact 
the integrity, availability or privacy of personal health information or other data subject to privacy laws or disrupt our or 
their information systems, devices or business, including our ability to provide various health care services. In such an 

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event, we may incur substantial costs, including but not limited to, costs associated with remediating the effects of the 
cybersecurity incident, costs for security measures to guard against similar future incidents and costs to recover data. 
Further, consumer confidence in the integrity and security of personal information and critical operations data in the health 
care  industry  generally  could  be  shaken  to  the  extent  there  are  successful  cyberattacks  at  other  health  care  services 
companies, which could have a material, adverse effect on our business, financial position or results of operations. 

As  a  result,  cybersecurity,  privacy,  physical  security  and  the  continued  development  and  enhancement  of  our 
controls, processes and practices designed to protect our facilities, information systems and data from attack, damage or 
unauthorized access remain a priority for us. Our Audit and Compliance Committee includes the topic of cybersecurity 
risk and information security as one of its standing agenda items, and is frequently updated on management’s ongoing 
actions to monitor, identify, assess and mitigate significant cybersecurity matters. Committee meetings regularly include 
a report from our Chief Security Officer to provide an update on (i) activities within our internal cybersecurity defense 
center to monitor and respond to both internal and third-party cyber events, (ii) ongoing threats that are being monitored 
and  (iii)  the  current  threat  level  assessment  for  the  Company.  As  cyber  threats  continue  to  evolve,  along  with  their 
increased volume and sophistication, we may be required to expend significant additional resources to continue to modify 
or  enhance  our  protective  measures  or  to  investigate  and  remediate  any  cybersecurity  vulnerabilities  or  incidents. 
Although to date no cyberattack or other information or security breach, whether experienced by us or a third party, has 
resulted in material losses or other material consequences to us, there can be no assurance that our controls and procedures 
in place to monitor and mitigate the risks of cyber threats, including the remediation of critical information security and 
software vulnerabilities, will be sufficient and/or timely and that we will not suffer material losses or consequences in the 
future. Additionally, while we have in place insurance coverage designed to address certain aspects of cyber risks, such 
insurance coverage may be insufficient to cover all losses or all types of claims that may arise. The occurrence of any of 
these events could result in (i) harm to patients; (ii) business interruptions and delays; (iii) the loss, misappropriation, 
corruption or unauthorized access of data; (iv) litigation and potential liability under privacy, security, breach notification 
and consumer protection laws, common law theories or other applicable laws; (v) reputational damage; and (vi) foreign, 
federal and state governmental inquiries, any of which could have a material, adverse effect on our financial position and 
results of operations and harm our business reputation. 

Our operations could be impaired by a failure of our information systems. 

The performance of our information systems is critical to our business operations. In addition to our shared services 

initiatives, our information systems are essential to a number of critical areas of our operations, including: 

accounting and financial reporting; 
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billing and collecting accounts; 
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coding and compliance; 
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admissions, provision of care and care coordination; 
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clinical systems and medical devices; 
•	  medical records and document storage; 
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•	  monitoring quality of care and collecting data on quality measures necessary for full Medicare payment 

inventory management; 
negotiating, pricing and administering managed care contracts and supply contracts; and 

updates. 

Information  systems  may  be  vulnerable  to  damage  from  a  variety  of  sources,  including  telecommunications  or 
network  failures,  human  acts  such  as  inadvertent  or  intentional  misuse  by  employees  and  cyberattacks,  including 
ransomware and data theft, and natural disasters. Moreover, we rely on various third-party technology platforms, which 
are increasingly important to our business and continue to grow in complexity and scope. Failure to adequately manage 
implementations of new technology, updates or enhancements of such platforms or interfaces between platforms could 
place us at a competitive disadvantage, disrupt our operations, and have a material, adverse impact on our business and 
results of operations. 

We have taken precautionary measures to prevent unanticipated problems that could affect our information systems. 
Nevertheless, we or our vendors and other third parties that we rely upon may experience system failures and disruptions. 
The occurrence of any system failure could result in interruptions, delays, the loss or corruption of data and cessations or 
interruptions in the availability of systems, any of which could have a material, adverse effect on our financial position 
and results of operations and harm our business reputation. 

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Health  care  technology  initiatives,  particularly  those  related  to  sharing  patient  data  and  interoperability,  may 
adversely affect our operations. 

The federal government is working to promote the adoption of health information technology and the promotion of 
nationwide  health  information  exchange  to  improve  health  care.  For  example,  HHS  incentivizes  the  adoption  and 
meaningful  use  of  certified  EHR  technology  through  its  Promoting  Interoperability  Programs.  Eligible  hospitals  and 
eligible  professionals,  including  our  hospitals  and  employed  professionals,  are  subject  to  reduced  payments  from 
Medicare if they fail to demonstrate meaningful use of certified EHR technology. As these technologies have become 
widespread, the focus has shifted to increasing patient access to health care data and interoperability. The 21st  Century 
Cures Act and its implementing regulations promote information sharing by prohibiting information blocking by health 
care providers and certain other entities. Information blocking is defined as engaging in activities likely to interfere with 
the access, exchange or use of electronic health information, except as required by law or specified by HHS as a reasonable 
and necessary activity. Current and future initiatives related to health care technology, data sharing and interoperability 
may  require  changes  to  our  operations,  impose  new  and  complex  compliance  obligations  and  require  investments  in 
infrastructure.  We  may  be  subject  to  financial  penalties  or  other  disincentives  or  experience  reputational  damage  for 
failure to comply. It is difficult to predict how these initiatives will affect our relationships with providers and vendors, 
participation in health care information exchanges or networks, the exchange of patient data and patient engagement. 

We may not be reimbursed for the cost of expensive, new technology. 

As  health  care  technology  continues  to  advance,  the  price  of  purchasing  such  new  technology  has  significantly 
increased  for  providers.  Some  payers  have  not  adapted  their  payment  systems  to  adequately  cover  the  cost  of  these 
technologies for providers and patients. If payers do not adequately reimburse us for these new technologies, we may be 
unable to acquire such technologies or we may nevertheless determine to acquire or utilize these technologies in order to 
treat our patients. In either case, our results of operations and financial position could be adversely affected. 

Risks related to governmental regulation and other legal matters: 
Our  business  and  results  of  operations  may  be  adversely  affected  by  health  care  reform  efforts.  We  are  unable  to 
predict whether, what, and when additional health reform measures will be adopted or implemented, and the effects 
and  ultimate  impact  of  any  such  measures  are  uncertain  and  may  adversely  affect  our  business  and  results  of 
operations. 

In recent years, the U.S. health care industry has undergone significant changes at the federal and state levels, many 
of which have been aimed at reducing costs and government spending and increasing access to health insurance. The most 
prominent  of  these  legislative  reform  efforts  is  the  Affordable  Care  Act,  which  affects  how  health  care  services  are 
covered, delivered and reimbursed, and expanded health insurance coverage through a combination of public program 
expansion and private sector health insurance reforms. The Affordable Care Act has been, and continues to be, subject to 
legislative and regulatory changes and court challenges. For example, effective January 1, 2019, the penalty associated 
with the individual mandate to maintain health insurance was effectively eliminated. However, some states have imposed 
individual health insurance mandates, and other states have explored or offer public health insurance options. To increase 
access to health insurance during COVID-19, the ARPA enhanced subsidies for individuals eligible to purchase coverage 
through Affordable Care Act marketplaces as part of the APRA. The Inflation Reduction Act, enacted in August 2022, 
extends these enhanced subsidies through 2025. These changes and initiatives may impact the number of individuals that 
elect to obtain public or private health insurance or the scope of such coverage, if purchased. 

There is uncertainty regarding whether, when and how the Affordable Care Act may be further changed, and how 
the  law  will  be  interpreted  and  implemented.  Changes  by  Congress  or  government  agencies  could  eliminate  or  alter 
provisions  beneficial  to  us,  while  leaving  in  place  provisions  reducing  our  reimbursement  or  otherwise  negatively 
impacting our business. 

There is also uncertainty regarding whether, when, and what other health reform initiatives will be adopted and the 
impact of such efforts on providers and other health care industry participants. Some members of Congress have proposed 
measures  that  would  expand  government-sponsored  coverage,  including  proposals  to  expand  coverage  of  federally-
funded insurance programs as an alternative to private insurance or establish a single-payer system (such reforms often 
referred to as “Medicare for All”). CMS administrators may grant states additional flexibility in the administration of state 
Medicaid programs and make changes to Medicaid payment models. Other recent health reform initiatives and proposals 
at the federal and state levels include those focused on price transparency and out-of-network charges, which may impact 
prices,  our  relationships  with  patients,  payers  or  ancillary  providers  (such  as  anesthesiologists,  radiologists  and 
pathologists) and our competitive position. For example, among other consumer protections, the No Surprises Act imposes 
various requirements on providers and health plans intended to prevent “surprise” medical bills. It also establishes an IDR 
process for providers and payers to handle payment disputes that cannot be resolved through direct negotiations. Trends 
toward transparency and value-based pricing may impact our competitive position and patient volumes. For example, the 

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CMS  Care  Compare  website  makes  publicly  available  certain  data  on  performance  of  hospitals  and  other  Medicare-
certified  providers  on  quality  measures  and  patient  satisfaction,  and  our  patient  volumes  could  decline  if  any  of  our 
facilities achieve poor results. Further, Medicare reimbursement for hospitals is adjusted based on quality and efficiency 
measures. Other industry participants, such as private payers and large employer groups and their affiliates, may also 
introduce financial or delivery system reforms. We are unable to predict the nature and success of such initiatives. Health 
care reform initiatives, including changes to the Affordable Care Act, may have an adverse effect on our business, results 
of operations, cash flow, capital resources and liquidity. 

Changes in government health care programs may adversely affect our revenues. 

A significant portion of our patient volume is derived from government health care programs, principally Medicare 
and  Medicaid.  Specifically,  we  derived  43.6%  of  our  revenues  from  the  Medicare  and  Medicaid  programs  in  2022. 
Changes in government health care programs, including as a result of health reform efforts, may reduce the reimbursement 
we receive and could adversely affect our business and results of operations. In addition, in some cases, private third-
party payers rely on all or portions of Medicare payment systems to determine payment rates. Changes to government 
health care programs that reduce payments under these programs may negatively impact payments from private third-
party payers. 

In recent years, legislative and regulatory changes have resulted in limitations on and, in some cases, reductions in 
levels  of  payments  to  health  care  providers  for  certain  services  under  the  Medicare  program.  For  example,  Congress 
established automatic spending reductions under the BCA, resulting in a 2% reduction in Medicare payments beginning 
in 2013. The CARES Act and related legislation temporarily suspended these reductions through March 31, 2022, and 
reduced the sequestration adjustment from 2% to 1% from April 1 through June 30, 2022. The full 2% reduction resumed 
on July 1, 2022. The BCA sequestration has been extended through the first six months of 2032. In addition, as a result 
of the ARPA, an additional Medicare payment reduction of up to 4% was required to take effect in January 2022; however, 
Congress has delayed implementation of this reduction until 2025. These reductions are in addition to reductions mandated 
by the Affordable Care Act and other laws. It is difficult to predict whether, when or what other deficit reduction initiatives 
may be proposed by Congress, but future legislation may include additional Medicare spending reductions. 

From  time to  time, CMS revises  the  reimbursement systems  used to  reimburse  health care  providers,  including 
changes to the inpatient hospital MS-DRG system and other payment systems, which may result in reduced Medicare 
payments.  For  example,  under  a  site  neutrality  policy,  clinic  visit  services  provided  by  off-campus  provider-based 
departments that were formerly paid under the outpatient PPS are now paid under the Physician Fee Schedule. Further, 
due to changes to the 340B Drug Pricing Program in prior years and resulting litigation, hospitals that do not participate 
in the 340B program (including our hospitals) will receive decreased reimbursement going forward for outpatient drugs 
and  services,  and  may  be  required  to  repay  previously  received  payments.  As  another  example,  CMS  has  previously 
implemented and proposed changes to DSH payment formulas, some of which are the subject of court challenges, and 
has indicated that the agency will return to DSH payment formulas in future rulemaking. Future changes to these payment 
policies may adversely impact our results of operations, and any potential legal challenges to changes may take years to 
resolve. Additionally, as required under the IMPACT Act, HHS and the Medicare Payment Advisory Commission are 
working toward a unified post-acute care payment model that would include home health agencies and IRFs. A unified 
post-acute care payment system would pay post-acute care providers under a single framework according to a patient’s 
characteristics, rather than based on the post-acute care setting where the patient receives treatment. In a July 2022 report, 
CMS acknowledged that universal implementation of such a system would require congressional approval. Under the 
IMPACT Act, the Medicare Payment Advisory Commission must submit a report to Congress by June 2023. Payment 
policies for different types of providers and for various items and services continue to evolve. Congress and/or CMS may 
implement further changes to reimbursement for items or services that result in payment reductions for other items or 
services or that otherwise affect our business and operations. 

Because  most  states  must  operate  with  balanced  budgets  and  the  Medicaid  program  is  often  a  state’s  largest 
program, some states have enacted or may consider enacting legislation designed to reduce their Medicaid expenditures. 
Further,  many  states  have  also  adopted,  or  are  considering,  legislation  designed  to  reduce  coverage,  enroll  Medicaid 
recipients in managed care programs, and/or impose additional taxes on hospitals to help finance or expand the states’ 
Medicaid  systems.  Periods  of  economic  weakness  may  increase  the  budgetary  pressures  on  many  states,  and  these 
budgetary pressures may result in decreased spending, or decreased spending growth, for Medicaid programs and the 
Children’s  Health  Insurance  Program  in  many  states.  Some  states  that  provide  Medicaid  supplemental  payments  are 
reviewing these programs or have filed waiver requests with CMS to replace these programs, and CMS has performed 
and continues to perform compliance reviews of some states’ programs and is considering changes to the requirements 
for  such  programs,  which  could  result  in  Medicaid  supplemental  payments  being  reduced  or  eliminated.  Further, 
legislation  and  administrative  actions  at  the  federal  level  may  impact  the  funding  for,  or  structure  of,  the  Medicaid 
program, and may shape the administration of the Medicaid program at the state level. Federal Medicaid policies are 
subject  to  change,  including  as  a  result  of  changes  in  the  presidential  administration.  For  example,  where  states  had 

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previously been permitted to condition Medicaid enrollment on work or other community engagement, the approvals of 
waivers permitting these conditions have been rescinded. However, a federal court is permitting Georgia to impose work 
and community engagement requirements under a Medicaid demonstration program that is expected to launch in mid-
2023. The federal government is also reexamining block grant funding structures. 

Current  or  future  health  care  reform  and  deficit  reduction  efforts,  changes  in  laws  or  regulations  regarding 
government health care programs, other changes in the administration of government health care programs and changes 
by private third-party payers in response to health care reform and other changes to government health care programs 
could have a material, adverse effect on our financial position and results of operations. 

If we fail to comply with extensive laws and government regulations, we could suffer penalties or be required to make 
significant changes to our operations. 

The health care industry is required to comply with extensive and complex laws and regulations at the federal, state 

and local government levels relating to, among other things: 

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billing and coding for services and properly handling overpayments; 
appropriateness and classification of level and setting of care provided, including proper classification of 
inpatient admissions, observation services and outpatient care; 
certifications of patient eligibility for home health and hospice services; 
relationships with physicians and other referral sources and referral recipients; 
necessity and adequacy of medical care; 
quality of medical equipment and services; 
qualifications of medical and support personnel; 
the  confidentiality,  maintenance,  interoperability,  exchange,  data  breach,  identity  theft  and  security  of 
health-related and personal information and medical records; 
screening, stabilization and transfer of individuals who have emergency medical conditions; 
restrictions on the provision of medical care, including reproductive care; 
licensure, certification and enrollment with government programs; 
the distribution, maintenance and dispensing of pharmaceuticals and controlled substances; 
debt collection, limits or prohibitions on balance billing and billing for out of network services; 
communications with patients and consumers; 
preparing and filing of cost reports;
 
operating policies and procedures;
 
activities regarding competitors; 
addition of facilities and services; and 
environmental protection. 

Among these laws are the federal Anti-kickback Statute, EKRA, the federal Stark Law, the FCA, the No Surprises 
Act and similar state laws. We have a variety of financial relationships with physicians and others who either refer or 
influence the referral of patients to our hospitals, other health care facilities, laboratories and employed physicians or who 
are the recipients of referrals, and these laws govern those relationships. The OIG has enacted safe harbor regulations that 
outline practices deemed protected from prosecution under the Anti-kickback Statute. While we endeavor to comply with 
the applicable safe harbors, certain of our current arrangements, including joint ventures and financial relationships with 
physicians and other referral sources and persons and entities to which we refer patients, do not qualify for safe harbor 
protection.  Failure  to  qualify  for  a  safe  harbor  does  not  mean  the  arrangement  necessarily  violates  the  Anti-kickback 
Statute but may subject the arrangement to greater scrutiny. However, we cannot offer assurance that practices outside of 
a safe harbor will not be found to violate the Anti-kickback Statute. Allegations of violations of the Anti-kickback Statute 

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may be brought under the federal Civil Monetary Penalty Law, which requires a lower burden of proof than other fraud 
and abuse laws, including the Anti-kickback Statute. 

Our financial relationships with referring physicians and their immediate family members must comply with the 
Stark Law by meeting an exception. We attempt to structure our relationships to meet an exception to the Stark Law, but 
the regulations implementing the exceptions are detailed and complex and are subject to continuing legal and regulatory 
change. Thus, we cannot provide assurance that every relationship complies fully with the Stark Law. Unlike the Anti-
kickback Statute, failure to meet an exception under the Stark Law results in a violation of the Stark Law, even if such 
violation is technical in nature. 

Additionally, if we violate the Anti-kickback Statute or Stark Law, or if we improperly bill for our services, we 
may be found to violate the FCA, either under a suit brought by the government or by a private person under a qui tam, 
or “whistleblower,” suit. See Item 1, “Business — Regulation and Other Factors.” 

We  develop  software  programs  utilizing  machine  learning/artificial  intelligence  for  use  within  our  network  to 
improve care. In some cases, software can be considered a medical device under the federal Food, Drug, and Cosmetic 
Act (“FDCA”). Medical devices are subject to extensive regulation by the Food and Drug Administration (“FDA”) under 
the FDCA. In September 2022, FDA issued non-binding final guidance that describes the types of clinical decision support 
software that FDA will regulate as a medical device, potentially including software programs that were not previously 
treated as medical devices. Application of the new guidance may result in our current and/or future software programs 
providing clinical decision support being subject to FDA regulation. If FDA determines that any of our software programs 
are  medical  devices  under  the  FDCA,  the  distribution  and/or  use  of  those  software  programs  may  require  premarket 
approval or clearance, and we may be required to cease distribution and/or use of such programs until we obtain any 
required premarket approval or clearance, which could adversely affect our operations. Failure to seek FDA approval or 
clearance  or  noncompliance  with  other  applicable  FDA  requirements  could  adversely  affect  our  business,  financial 
condition or results of operations. 

We also operate health care facilities in the United Kingdom and have operations and commercial relationships 
with companies in other foreign jurisdictions and, as a result, are subject to certain U.S. and foreign laws applicable to 
businesses generally, including anti-corruption and anti-bribery laws. The Foreign Corrupt Practices Act regulates U.S. 
companies in their dealings with foreign officials, prohibiting bribes and similar practices, and requires that they maintain 
records that fairly and accurately reflect transactions and appropriate internal accounting controls. In addition, the United 
Kingdom Bribery Act has wide jurisdiction over certain activities that affect the United Kingdom. 

A variety of state, national, foreign and international laws and regulations apply to the collection, use, retention, 
protection, security, disclosure, transfer and other processing of personal data. For example, the CCPA, which affords 
consumers expanded privacy protections such as the right to know what personal information is collected and how it is 
used, went into effect on January 1, 2020, and was recently significantly amended by the CPRA. California residents also 
have the right to request that a business delete their personal information unless it is necessary for the business to maintain 
for certain purposes, to direct a business to correct errors in their personal information, and to restrict the use and disclosure 
of sensitive information. They have the right to know if their personal information is being sold or shared and the right to 
opt out of the sale or disclosure. Beginning in 2023, under the CPRA’s amendments, as well as comprehensive privacy 
legislation passed in other states, including Colorado, Utah and Virginia, residents of those states will have additional 
rights with respect to their personal information, such as a right to opt out of certain processing activities for sensitive 
data  and  a  right  to  a  portable  copy  of  their  personal  information.  The  CPRA  creates  a  new  regulator  responsible  for 
enforcement of the CPRA, and enforcement priorities of the regulatory bodies responsible for enforcing new state privacy 
laws have yet to be determined or may change in the future. These new state privacy laws provide for civil penalties for 
violations, and the CCPA and CPRA provide a private right of action for data breaches that may increase data breach 
litigation. Failure to comply with these and any other comprehensive privacy laws passed at the state or federal level may 
result in regulatory enforcement action and damage to our reputation. The potential effects of such legislation are far-
reaching  and  may  require  us  to  modify  our  data  processing  practices  and  policies  and  to  incur  substantial  costs  and 
expenses to comply. Moreover, several privacy bills have been proposed both at the federal and state level that may result 
in additional legal requirements that impact our business. With the United Kingdom’s departure from the European Union 
(“Brexit”),  our  United  Kingdom  operations  are  no  longer  subject  to  the  European  Union’s  General  Data  Protection 
Regulation (“GDPR”) but are subject to the UK Data Protection Legislation, which has been amended in connection with 
Brexit to be functionally similar to the GDPR and which contains stricter privacy restrictions than laws and regulations 
in the United States and provides for significant fines in the event of violations. These administrative fines are based on 
a multi-factored approach. Moreover, rules for data transfers outside of the United Kingdom and European Economic 
Area have changed significantly with Brexit and a recent Court of European Justice decision, and are subject to further 
revision and updated regulator guidance, making necessary compliance measures challenging to ascertain and implement 

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with respect to our United Kingdom operations. We expect that there will continue to be new laws, regulations, regulatory 
guidance, and industry standards concerning privacy, data protection and information security proposed and enacted in 
various jurisdictions, which could impact our operations and cause us to incur substantial costs. 

We send short message service, or SMS, text messages to patients. While we obtain consent from these individuals 
to send text messages, federal or state regulatory authorities or private litigants may claim that the notices and disclosures 
we  provide,  form  of  consents  we  obtain  or  our  SMS  texting  practices  are  not  adequate  or  violate  applicable  law.  In 
addition,  we  must  ensure  that  our  SMS  texting  practices  comply  with  regulations  and  agency  guidance  under  the 
Telephone Consumer Protection Act (the “TCPA”), a federal statute that protects consumers from unwanted telephone 
calls, faxes and text messages. While we strive to adhere to strict policies and procedures that comply with the TCPA, the 
Federal Communications Commission, as the agency that implements and enforces the TCPA, may disagree with our 
interpretation of the TCPA and subject us to penalties and other consequences for noncompliance. Determination by a 
court or regulatory agency that our SMS texting practices violate the TCPA could subject us to civil penalties and could 
require us to change some portions of our business. Even an unsuccessful challenge by patients or regulatory authorities 
of our activities could result in adverse publicity and could require a costly response from and defense by us. Moreover, 
if wireless carriers or their trade associations, which issue guidelines for texting programs, determine that we have violated 
their guidelines, our ability to engage in texting programs may be curtailed or revoked, which could impact our operations 
and cause us to incur costs related to implementing a workaround solution. 

We engage in consumer debt collection for HCA-affiliated hospitals and certain non-affiliated hospitals. We also 
engage in credit reporting for certain non-affiliated hospitals. The federal Fair Debt Collection Practices Act, the Fair 
Credit  Reporting  Act  and  the  TCPA  restrict  the  methods  that  companies  may  use  to  contact  and  seek  payment  from 
consumer debtors regarding past due accounts and to report to consumer reporting agencies on the status of those accounts. 
Many  states  impose  additional  requirements  on  debt  collection  and  credit  reporting  practices,  and  some  of  those 
requirements may be more stringent than the federal requirements. 

Finally,  we  are  subject  to  various  federal,  state  and  local  statutes  and  ordinances  regulating  the  discharge  of 
materials into the environment. For example, our health care operations generate medical waste, such as pharmaceuticals, 
biological materials and disposable medical instruments, that must be handled, stored, transported, treated and disposed 
of in compliance with federal, state and local environmental laws and regulations. Environmental regulations also may 
apply when we build new facilities or renovate existing facilities. If we are found not to be in compliance with such laws 
and regulations, we may be liable for significant investigation and clean-up costs or be subject to enforcement actions by 
governmental  authorities  or  lawsuits  by  private  plaintiffs.  Moreover,  any  changes  in  the  environmental  regulatory 
framework (including legislative or regulatory efforts designed to address climate change) could have a material, adverse 
effect on our business. 

If we fail to comply with these or other applicable laws and regulations, which are subject to change, we could be 
subject to liabilities, including civil penalties, money damages, lapses in reimbursement, the loss of our licenses to operate 
one or more facilities, exclusion of one or more facilities from participation in the Medicare, Medicaid and other federal 
and state health care programs, civil lawsuits and criminal penalties. In addition, different interpretations or enforcement 
of, or amendments to, these and other laws and regulations in the future could subject our current or past practices to 
allegations  of  impropriety  or  illegality  or  could  require  us  to  make  changes  in  our  facilities,  equipment,  personnel, 
services,  capital  expenditure  programs  and  operating  expenses.  The  costs  of  compliance  with,  and  the  other  burdens 
imposed by, these and other laws or regulatory actions may increase our operational costs, result in interruptions or delays 
in the availability of systems and/or result in a patient volume decline. We may also face audits or investigations by one 
or more domestic or foreign government agencies relating to our compliance with these regulations. An adverse outcome 
under any such investigation or audit, a determination that we have violated these or other laws or a public announcement 
that we are being investigated for possible violations could result in liability, result in adverse publicity, and adversely 
affect our business, financial condition, results of operations or prospects. 

State efforts to regulate the construction or expansion of health care facilities could impair our ability to operate and 
expand our operations. 

Some states, particularly in the eastern part of the country, require health care providers to obtain prior approval, 
often  known  as  a  CON,  for  the  purchase,  construction  or  expansion  of  health  care  facilities,  to  make  certain  capital 
expenditures  or  to  make  changes  in  services  or  bed  capacity.  In  giving  approval,  these  states  consider  the  need  for 
additional or expanded health care facilities or services. We currently operate health care facilities in a number of states 
with CON laws or that require other types of approvals for the establishment or expansion of certain facility types or 
services. The failure to obtain any required CON or other required approval could impair our ability to operate or expand 
operations. Any such failure could, in turn, adversely affect our ability to attract patients and physicians to our facilities 
and grow our revenues, which would have an adverse effect on our results of operations. 

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We may incur additional tax liabilities. 

We are subject to tax in the United States as well as those states and foreign jurisdictions in which we do business. 
Changes in tax laws, including increases in tax rates, or interpretations of tax laws by taxing authorities or other standard 
setting bodies could increase our tax obligations and have a material, adverse impact on our results of operations. 

We  are  also subject to  examination  by federal,  state and  foreign  taxing  authorities.  Management believes  HCA 
Healthcare, Inc., its predecessors, subsidiaries and affiliates properly reported taxable income and paid taxes in accordance 
with  applicable  laws  and  agreements  established  with  the  Internal  Revenue  Service  (“IRS”),  state  and  foreign  taxing 
authorities and final resolution of any disputes will not have a material, adverse effect on our results of operations or 
financial position. However, if payments due upon final resolution of any issues exceed our recorded estimates, such 
resolutions could have a material, adverse effect on our results of operations or financial position. 

We have been and could become the subject of government investigations, claims and litigation. 

Health care companies are subject to numerous investigations by various government agencies. Further, under the 
FCA, private parties have the right to bring qui tam, or “whistleblower,” suits against companies that submit false claims 
for  payments  to,  or  improperly  retain  overpayments  from,  the  government.  Some  states  have  adopted  similar  state 
whistleblower and false claims provisions. Certain of our individual facilities and/or affiliates have received, and other 
facilities and/or affiliates may receive, government inquiries from, and may be subject to investigation by, federal and 
state  agencies.  Depending  on  whether  the  underlying  conduct  in  these  or  future  inquiries  or  investigations  could  be 
considered systemic, their resolution could have a material, adverse effect on our financial position, results of operations 
and liquidity. 

Government agencies and their agents, such as the MACs, fiscal intermediaries and carriers, as well as the OIG, 
CMS  and  state  Medicaid  programs,  conduct  audits  of  our  health  care  operations.  CMS  and  state  Medicaid  agencies 
contract  with  RACs  and  other  contractors  on  a  contingency  fee  basis  to  conduct  post-payment  reviews  to  detect  and 
correct improper payments in the Medicare program, including managed Medicare plans, and the Medicaid programs. 
RAC denials are appealable; however, in recent years, there have been significant delays in the Medicare appeals process. 
HHS has taken steps to streamline the process and improve efficiency, and has significantly reduced a years-long backlog. 
Nevertheless,  we  may  experience  delays  in  appealing  RAC  payment  denials.  Private  third-party  payers  may  conduct 
similar post-payment audits, and we also perform internal audits and monitoring. Depending on the nature of the conduct 
found in such audits and whether the underlying conduct could be considered systemic, the resolution of these audits 
could have a material, adverse effect on our financial position, results of operations and liquidity. 

Should we be found out of compliance with applicable laws, regulations or programs, depending on the nature of 

the findings, our business, our financial position and our results of operations could be negatively impacted. 

We may be subject to liabilities from claims brought against our facilities, which are costly to defend and may require 
us to pay significant damages if not covered by insurance. 

We are subject to litigation relating to our business practices, including claims and legal actions by patients and 
others in the ordinary course of business alleging malpractice, product liability or other legal theories. Many of these 
actions  seek  large  sums  of  money  as  damages  and  involve  significant  defense  costs.  We  insure  a  portion  of  our 
professional liability risks through our insurance subsidiary. Management believes our reserves for self-insured retentions 
and insurance coverage are sufficient to cover insured claims arising out of the operation of our facilities, although some 
claims may exceed the scope or amount of the coverage limits of our insurance policies. Our insurance subsidiary has 
entered into certain reinsurance contracts; however, the subsidiary remains liable to the extent that the reinsurers do not 
meet their obligations under the reinsurance contracts. If payments for claims exceed actuarially determined estimates, 
are not covered by insurance, or reinsurers, if any, fail to meet their obligations, our results of operations and financial 
position could be adversely affected. 

Risks related to operations, strategy, demand and competition: 
Our hospitals and other facilities face competition for patients from other hospitals and health care providers. 

The health care business is highly competitive, and competition among hospitals and other health care providers 
for patients has intensified in recent years. Generally, other hospitals and health care facilities in the communities we 
serve provide services similar to those we offer. Trends toward transparency and value-based purchasing may have an 
impact on our competitive position, ability to obtain and maintain favorable contract terms, and patient volumes in ways 
that are difficult to predict. CMS publicizes on its Care Compare website performance data related to quality measures 
and data on patient satisfaction surveys that hospitals, home health agencies, hospices and various other types of Medicare-
certified  facilities  submit  in  connection  with  their  Medicare  reimbursement.  The  Care  Compare  website  provides  an 
overall  rating  that  synthesizes  various  quality  measures  into  a  star  rating  for  each  hospital,  home  health  agency  and 

45
 

hospice. If any of our hospitals or other provider types achieve poor results (or results that are lower than our competitors) 
on quality measures or on patient satisfaction surveys, our competitive position could be negatively affected. Further, 
hospitals are required to publish online a list of their standard charges for all items and services, including discounted 
cash prices and payer-specific and de-identified negotiated charges, and must also publish a consumer-friendly list of 
standard  charges  for  certain  “shoppable”  services  or,  alternatively,  maintain  an  online  price  estimator  tool  for  the 
shoppable services. HHS also requires health insurers to publish online charges negotiated with providers for health care 
services, and starting January 1, 2023, health insurers must provide online price comparison tools to help individuals get 
personalized cost estimates for covered items and services. The No Surprises Act imposes additional price transparency 
requirements, including requiring providers to send uninsured or self-pay patients (in advance of the date of the scheduled 
item or service or upon request) and health plans (prior to the scheduled date of the item or service) of insured patients a 
good faith estimate of the expected charges and diagnostic codes. HHS is deferring enforcement of certain requirements 
of the No Surprises Act applicable to providing estimates for insured individuals, and is also deferring enforcement with 
regard to good faith estimates sent to uninsured or self-pay patients that do not include expected charges for co-providers 
or  co-facilities.  It  is  not  entirely  clear  how  price  transparency  requirements  will  affect  consumer  behavior,  our 
relationships  with  payers,  or  our  ability  to  set  and  negotiate  prices,  but  our  competitive  position  could  be  negatively 
affected if our standard charges are higher or are perceived to be higher than the charges of our competitors. 

The number of freestanding specialty hospitals, surgery centers, emergency departments, urgent care centers and 
diagnostic and imaging centers in the geographic areas in which we operate has increased. Many individuals are seeking 
a broader range of services at outpatient facilities as a result of the growing availability of stand-alone outpatient health 
care facilities, the increase in payer reimbursement policies that restrict inpatient coverage and the increase in the services 
that can be provided on an outpatient basis, including high margin services. Consequently, most of our hospitals operate 
in a highly competitive environment, which may put pressure on our pricing, ability to contract with third-party payers 
and strategy for volume growth. Some of the facilities that compete with our hospitals are physician-owned or are owned 
by governmental agencies or not-for-profit corporations supported by endowments, charitable contributions and/or tax 
revenues and can finance capital expenditures and operations on a tax-exempt basis. Recent consolidations of not-for-
profit hospital entities may intensify this competitive pressure. There is also increasing consolidation in the third-party 
payer industry, including vertical integration efforts among third-party payers and health care providers, and increasing 
efforts by payers to influence or direct the patient’s choice of provider by the use of narrow networks or other strategies. 
Health  care  industry  participants  are  increasingly  implementing  physician  alignment  strategies,  such  as  employing 
physicians,  acquiring  physician  practice  groups  and  participating  in  ACOs  or  other  clinical  integration  models.  Other 
industry participants, such as large employer groups and their affiliates and large retail chains, may intensify competitive 
pressure and affect the industry in ways that are difficult to predict. 

Our hospitals compete with specialty hospitals and with both our own and unaffiliated freestanding ASCs and other 
outpatient providers for market share in certain high margin services and for quality physicians and personnel. If ASCs 
and  other  outpatient  providers  are  better  able  to  compete  in  this  environment  than  our  hospitals,  our  hospitals  may 
experience  a  decline  in  patient  volume,  and  we  may  experience  a  decrease  in  margin,  even  if  those  patients  use  our 
providers. In states that do not require a CON or other type of approval for the purchase, construction or expansion of 
health care facilities or services, competition in the form of new services, facilities and capital spending is more prevalent. 
Some states that have historically imposed CON or similar prior approval requirements have removed or are considering 
removing these requirements, which may reduce barriers to entry and increase competition in our service areas. Changes 
in  licensure  or  other  regulations  and  recognition  of  new  provider  types  or  payment  models  could  also  impact  our 
competitive position. If our competitors are better able to attract patients, make capital expenditures and maintain modern 
and technologically upgraded facilities and equipment, recruit physicians, expand services or obtain favorable third-party 
payer contracts at their facilities than our hospitals and other providers, we may experience an overall decline in patient 
volume. See Item 1, “Business — Competition.” 

Any increase in the volume of uninsured patients or deterioration in the collectability of uninsured and patient due 
accounts could adversely affect our results of operations. 

The primary collection risks for our accounts receivable relate to the uninsured patient accounts and patient accounts 
for  which  the  primary  third-party  payer  has  paid  the  amounts  covered  by  the  applicable  agreement,  but  patient 
responsibility amounts (exclusions, deductibles and copayments) remain outstanding. At December 31, 2022, estimated 
implicit  price  concessions  of  $6.780  billion  had  been  recorded  to  adjust  our  revenues  and  accounts  receivable  to  the 
estimated amounts we expect to collect. The estimated cost of total uncompensated care was $3.491 billion for 2022, 
$3.350 billion for 2021 and $3.483 billion for 2020. 

Any  increase  in  the  volume  of  uninsured  patients  or  deterioration  in  the  collectability  of  uninsured  accounts 
receivable could adversely affect our cash flows and results of operations. Our facilities may experience growth in total 
uncompensated  care  as  a  result  of  a  number  of  factors,  including  conditions  impacting  the  overall  economy  and 
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unemployment levels. In addition, legislative and regulatory changes, such as the effective elimination of the financial 
penalty associated with the Affordable Care Act’s individual mandate, may impact the number of individuals that elect to 
obtain public or private health insurance or the scope of such coverage, if purchased. We are unable to predict what, if 
any, and when such changes will be made in the future. 

We provide uninsured discounts and charity care for individuals, including for those residing in states that choose 
not to implement the Medicaid expansion or that modify the terms of the program, for undocumented aliens who are not 
permitted to enroll in an Exchange or government health care programs and for certain others who may not have insurance. 
Some  patients  may  choose  to  enroll  in  lower  cost  Medicaid  plans  or  other  health  insurance  plans  with  lower 
reimbursement levels. We may also be adversely affected by the growth in patient responsibility accounts as a result of 
increases in the adoption of health plan structures that shift greater payment responsibility for care to individuals through 
greater exclusions and copayment and deductible amounts. Further, our ability to collect patient responsibility accounts 
may be limited by statutory, regulatory and investigatory initiatives, including private lawsuits directed at hospital charges 
and collection practices for uninsured and underinsured patients. For example, the No Surprises Act requires providers to 
send uninsured and self-pay patients a good faith estimate of expected charges for items and services. The estimate must 
cover items and services that are reasonably expected to be provided together with the primary item or services, including 
those that may be provided by other providers. If the uninsured or self-pay patient receives a bill that is substantially 
greater than the expected charges in the good faith estimate or the provider furnishes an item or service that was not 
included  in  the  good  faith  estimate,  they  may  initiate  a  patient-provider  dispute  resolution  process  established  by 
regulation. 

If our volume of patients with private health insurance coverage declines or we are unable to retain and negotiate 
favorable contracts with private third-party payers, including managed care plans, our revenues may be adversely 
affected. 

Broad  economic  factors,  including  inflationary  pressures,  supply  chain  disruptions,  labor  shortages,  increased 
unemployment and underemployment rates and reduced consumer spending and confidence, the continued shift of care 
to an outpatient setting and the aging population may impact our revenue mix. Private third-party payers, including HMOs, 
PPOs and other managed care plans, typically reimburse health care providers at a higher rate than Medicare, Medicaid 
or  other  government  health  care  programs.  Reimbursement  rates  are  set  forth  by  contract  when  our  facilities  are  in-
network, and payers utilize plan structures to encourage or require the use of in-network providers. Revenues derived 
from private third-party payers (domestic only) accounted for 48.3%, 51.6% and 51.5% of our revenues for 2022, 2021 
and 2020, respectively. As a result, our ability to maintain or increase patient volumes covered by private third-party 
payers and to maintain and obtain favorable contracts with private third-party payers significantly affects the revenues 
and operating results of our facilities. 

Private third-party payers, including managed care plans, continue to demand discounted fee structures, and the 
ongoing trend toward consolidation among payers tends to increase their bargaining power over fee structures. Payers 
may utilize plan structures such as narrow networks and tiered networks that limit beneficiary provider choices, impose 
significantly higher cost sharing obligations when care is obtained from providers in a disfavored tier or otherwise shift 
greater financial responsibility for care to individuals. 

Other health care providers may impact our ability to enter into managed care contracts or negotiate increases in 
our  reimbursement  and  other  favorable  terms  and  conditions.  For  example,  some  of  our  competitors  may  negotiate 
exclusivity provisions with managed care plans or otherwise restrict the ability of managed care plans to contract with us. 
In addition to increasing negotiating leverage of private third-party payers, alignment efforts between third-party payers 
and health care providers may result in other competitive advantages, such as greater access to performance and pricing 
data. Our future success will depend, in part, on our ability to retain and renew our third-party payer contracts and enter 
into new contracts on terms favorable to us, which may be impacted by price transparency initiatives. For example, the 
No Surprises Act requires providers to send health plans of insured patients a good faith estimate of the expected charges 
and diagnostic codes prior to the scheduled date of the service or item. Further, hospitals are required to publish online 
payer-specific negotiated charges and de-identified minimum and maximum charges. In addition, starting January 1, 2023, 
health insurers must provide online price comparison tools to help individuals get personalized cost estimates for covered 
items and services. Cost-reduction strategies by large employer groups and their affiliates, such as directly contracting 
with a limited number of providers, may also limit our ability to negotiate favorable terms in our contracts and otherwise 
intensify competitive pressure. It is not clear what impact, if any, these and future health reform efforts will have on our 
ability to negotiate reimbursement increases and participate in third-party payer networks on favorable terms. If we are 
unable to retain and negotiate favorable contracts with third-party payers or experience reductions in payment increases 
or amounts received from third-party payers, our revenues may be reduced. 

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Under early COVID-related legislation, states that maintain continuous Medicaid enrollment until the end of the 
month in which the PHE ends are eligible for a temporary increase in federal funds for state Medicaid expenditures. Under 
recent legislation, the continuous coverage requirement was decoupled from the PHE timeline and will now expire as of 
April 1, 2023, and the increase in federal funding will be phased out through calendar year 2023. The resumption of 
redeterminations  for  Medicaid  enrollees  may  lead  to  coverage  disruptions  and  dis-enrollments  of  current  Medicaid 
enrollees. Furthermore, the number and identity of states that choose to expand or otherwise modify Medicaid programs 
and the terms of expansion and other program modifications continue to evolve. Some states have imposed individual 
health insurance mandates with financial penalties for noncompliance. Other states have explored or offer public health 
insurance options. These variables, among others, make it difficult to predict the number of uninsured individuals. 

Changes to physician utilization practices and treatment methodologies, third-party payer controls designed to reduce 
inpatient services or surgical procedures and other factors outside our control that impact demand for medical services 
may reduce our revenues. 

Controls imposed by Medicare, managed Medicare, Medicaid, managed Medicaid and private third-party payers 
designed to reduce admissions, intensity of services, surgical volumes and lengths of stay, in some instances referred to 
as “utilization review,” have affected and are expected to increasingly affect our facilities. Utilization review entails the 
review of the admission and course of treatment of a patient by third-party payers, and may involve prior authorization 
requirements. The Medicare program also issues national or local coverage determinations that restrict the circumstances 
under which Medicare pays for certain services. Inpatient utilization, average lengths of stay and occupancy rates continue 
to be negatively affected by third-party payers’ preadmission authorization requirements, coverage restrictions, utilization 
review and by pressure to maximize outpatient and alternative health care delivery services for less acutely ill patients. 
Efforts  to  impose  more  stringent  cost  controls  are  expected  to  continue.  Additionally,  trends  in  physician  treatment 
protocols and health plan design, such as health plans that shift increased costs and accountability for care to patients, 
could reduce our surgical volumes and admissions in favor of lower intensity and lower cost treatment methodologies or 
result in patients seeking care from other providers. 

Volume, admission and case-mix trends may be impacted by other factors beyond our control, such as changes in 
volume  of  certain  high  acuity  services,  variations  in  the  prevalence  and  severity  of  outbreaks  of  influenza  and  other 
illnesses,  such  as  COVID-19,  and  medical  conditions,  seasonal  and  severe  weather  conditions,  changes  in  treatment 
regimens and medical technology and other advances. Further, our operations may be impacted by expansion of in-home 
acute care models, and our inpatient volumes may decline if various inpatient hospital procedures become eligible for 
reimbursement by Medicare when performed in outpatient settings. These factors may reduce the demand for services we 
offer and decrease the reimbursement that we receive. Significant limits on the scope of services reimbursed, cost controls, 
changes  to  physician  utilization  practices,  treatment  methodologies,  reimbursement  rates  and  fees  and  other  factors 
beyond our control could have a material, adverse effect on our business, financial position and results of operations. 

We may encounter difficulty acquiring hospitals and other health care businesses, encounter challenges integrating 
the operations of acquired hospitals and other health care businesses and/or become liable for unknown or contingent 
liabilities as a result of acquisitions. 

A component of our business strategy is acquiring hospitals and other health care businesses. We may encounter 
difficulty acquiring new facilities or other businesses as a result of competition from other purchasers that may be willing 
to pay purchase prices that are higher than we believe are reasonable. Antitrust enforcement in the health care industry is 
currently  a  priority  of  the  Federal  Trade  Commission  and  the  DOJ,  including  with  respect  to  hospital  and  physician 
practice acquisitions. Some states require CONs in order to acquire a hospital or other facility, or to expand facilities or 
services. In addition, the acquisition of health care facilities often involves licensure approvals or reviews and complex 
change of ownership processes for Medicare and other payers. Further, many states have laws that restrict the conversion 
or  sale  of  not-for-profit  hospitals  to  for-profit  entities.  These  laws  may  require  prior  approval  from  the  state  attorney 
general, advance notification of the attorney general or other regulators and community involvement. Attorneys general 
in states without specific requirements may exercise broad discretionary authority over transactions involving the sale of 
not-for-profits under their general obligations to protect the use of charitable assets. These legislative and administrative 
efforts often focus on the appropriate valuation of the assets divested and the use of the proceeds of the sale by the non-
profit seller and may include consideration of commitments for capital improvements and charity care by the purchaser. 
Also, the increasingly challenging regulatory and enforcement environment may negatively impact our ability to acquire 
health care businesses if they are found to have material unresolved compliance issues, such as repayment obligations. 
Resolving compliance issues as well as completion of oversight, review or approval processes could seriously delay or 
even prevent our ability to acquire hospitals or other businesses and increase our acquisition costs. 

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We  may  be  unable  to  timely  and  effectively  integrate  hospitals  and  other  businesses  that  we  acquire  with  our 
ongoing operations, or we may experience delays implementing operating procedures and systems. Hospitals and other 
health  care  businesses  that  we  acquire  may  have  unknown  or  contingent  liabilities,  including  liabilities  for  failure  to 
comply  with  health  care  and  other  laws  and  regulations,  medical  and  general  professional  liabilities,  workers’ 
compensation  liabilities  and  tax  liabilities.  Although  we  typically  exclude  significant  liabilities  from  our  acquisition 
transactions and seek indemnification from the sellers for these matters, we could experience difficulty enforcing those 
obligations, experience liability in excess of any indemnification obtained or otherwise incur material liabilities for the 
pre-acquisition conduct of acquired businesses. Such liabilities and related legal or other costs could harm our business 
and results of operations. 

Our facilities are heavily concentrated in Florida and Texas, which makes us sensitive to regulatory, economic, public 
health, environmental and competitive conditions and changes in those states. 

We operated 182 hospitals at December 31, 2022, and 91 of those hospitals are located in Florida and Texas. Our 
Florida  and  Texas  facilities’  combined  revenues  represented  50%  of  our  consolidated  revenues  for  the  year  ended 
December 31, 2022. This geographic concentration makes us particularly sensitive to regulatory, economic, public health, 
environmental  and  competitive  conditions  in  those  states.  Any  material  change  in  the  current  payment  programs  or 
regulatory, economic, public health, environmental or competitive conditions in those states could have a disproportionate 
effect on our overall business results. 

In addition, our hospitals and other facilities in Florida, Texas and other coastal states are located in hurricane-prone 
areas. In the past, hurricanes have had a disruptive effect on the operations of our hospitals and other facilities in Florida, 
Texas and other coastal states and the patient populations in those states. Global climate change could also increase the 
intensity or frequency of hurricanes or other natural disasters. Our business activities could be harmed by a particularly 
active hurricane season or even a single storm, and the property insurance we obtain may not be adequate to cover losses 
from future hurricanes or other natural disasters. 

Our business and operations are subject to risks related to climate change. 

Global climate change  presents  both  immediate  and  long-term  physical risks (such as potential  increases  in  the 
intensity or frequency of hurricanes, extreme weather conditions or other natural disasters) and risks associated with the 
transition  to  a  low-carbon  economy  (such  as  regulatory  or  technology  changes).  These  changes  could  result  in,  for 
example, temporary declines in the number of patients seeking our services, closures of our hospitals and related facilities, 
and supply chain disruptions, as well as increased costs of products, commodities and energy (including utilities), and 
disruptions in our information systems, which in turn could negatively impact our business and results of operations. In 
addition, certain of our operations and facilities are located in regions that may be disproportionately impacted by the 
physical  risks  of  climate  change  (resulting  in  potential  increases  in  the  intensity  or  frequency  of  hurricanes,  extreme 
weather conditions or other natural disasters), and we face the risk of losses incurred as a result of physical damage to our 
hospitals and related facilities and business interruptions caused by such events. We maintain property insurance coverage 
to address the impact of physical damage to our facilities and for business interruption losses. However, such insurance 
coverage  may  be  insufficient  to  cover  all  losses  and  we  may  experience  a  material,  adverse  effect  on  our  results  of 
operations that is not recoverable through our insurance policies. Additionally, if we experience a significant increase in 
climate-related  events  that  result  in  material  losses  we  may  be  unable  to  obtain  similar  levels  of  property  insurance 
coverage  in  the  future.  In  addition,  changes  in  consumer  preferences  and  additional  legislation  and  regulatory 
requirements, including those associated with the transition to a low-carbon economy, may increase costs associated with 
compliance, the operation of our facilities and supplies. Regulations limiting greenhouse gas emissions and energy inputs 
may also increase in coming years, which may adversely impact us through increased compliance costs for us and our 
suppliers and vendors. Our response to climate change, our climate change strategies, policies, goals, commitments and 
disclosure,  and/or  our  ability  to  achieve  our  climate-related  goals  and  commitments  (which  are  subject  to  risks  and 
uncertainties, many of which are outside of our control) could result in reputational harm as a result of negative public 
sentiment, regulatory scrutiny, litigation and reduced investor and stakeholder confidence. 

We may be adversely affected if we are not able to achieve our environmental, social and governance (“ESG”) goals 
or otherwise meet the expectations of our stakeholders with respect to ESG matters. 

We strive to deliver shared value through our business, and our diverse stakeholders expect us to make significant 
progress  with  respect  to  certain  ESG-related  matters.  From  time  to  time,  we  announce  certain  aspirations  and  goals 
relevant  to  our  priority  ESG  matters.  We  periodically  publish  information  about  our  ESG  priorities,  strategies,  goals, 
targets and progress on our corporate website and update our ESG reporting from time to time. Achievement of these 
aspirations, targets, plans and goals is subject to risks and uncertainties, many of which are outside of our control, and it 
is possible that we may not achieve, or be perceived to have not achieved, our ESG goals or certain of our stakeholders 

49
 

might not be satisfied with our efforts, which could result in reputational harm as a result of negative public sentiment, 
regulatory  scrutiny,  litigation  and  reduced  investor  and  stakeholder  confidence.  Certain  challenges  we  face  in  the 
achievement of our ESG objectives are also captured within our ESG reporting, which is not incorporated by reference 
into and does not form any part of this Annual Report on Form 10-K or our other filings with the SEC. Standards for 
tracking and reporting ESG matters continue to evolve. Our selection of voluntary disclosure frameworks and standards, 
and the interpretation or application of those frameworks and standards, may change from time to time or differ from 
those of others. This may result in a lack of consistent or meaningful comparative data from period to period or between 
us and other companies in the same industry. In addition, our processes and controls may not always comply with evolving 
standards for identifying, measuring and reporting ESG metrics, including ESG-related disclosures that may be required 
of public companies by the SEC, and such standards may change over time, which could result in significant revisions to 
our current goals, reported progress in achieving such goals, or ability to achieve such goals in the future. A delay or 
inability  to  meet  our  goals  and  aspirations,  comply  with  federal,  state  or  international  environmental,  social  and 
governance laws and regulations, or meet evolving and varied stakeholder expectations and standards could adversely 
affect public perception of our business, employee morale or patient or shareholder support, expend corporate resources, 
result in substantial costs and expenses, result in legal or regulatory proceedings against the Company and negatively 
impact our financial condition and results of operations. 

The industry trend toward value-based purchasing may negatively impact our revenues. 

There is a trend in the health care industry toward value-based purchasing of health care services. These value-
based purchasing programs include both public reporting of quality data and preventable adverse events tied to the quality 
and  efficiency  of  care  provided  by  facilities.  Governmental  programs  including  Medicare  currently  require  hospitals, 
ASCs, home health agencies, hospices and other providers to report certain quality data to receive full reimbursement 
updates. In addition, Medicare does not reimburse for care related to certain preventable adverse events (also called “never 
events”), and federal law prohibits the use of federal funds under the Medicaid program to reimburse providers for medical 
assistance  provided  to  treat  HACs.  The  25%  of  hospitals  with  the  worst  risk-adjusted  HAC  scores  in  the  designated 
performance period receive a 1% reduction in their inpatient PPS Medicare payments the following year. 

Hospitals with excess readmission rates for conditions designated by CMS receive a reduction in their inpatient 
PPS operating Medicare payments for all Medicare inpatient discharges, not just discharges relating to the conditions 
subject to the excess readmission standard. The reduction in payments to hospitals with excess readmissions can be up to 
3% of a hospital’s base payments. 

CMS  has  implemented  a  value-based  purchasing  program  for  inpatient  hospital  services  that  reduces  inpatient 
hospital  payments  for  all  discharges  by  2%  in  each  federal  fiscal  year.  CMS  pools  the  amount  collected  from  these 
reductions to fund payments to reward hospitals that meet or exceed certain quality performance standards established by 
CMS.  CMS  scores  each  hospital  based  on  achievement  (relative  to  other  hospitals)  and  improvement  (relative  to  the 
hospital’s own past performance). Hospitals that meet or exceed the quality performance standards will receive greater 
reimbursement under the value-based purchasing program than they would have otherwise. In response to COVID-19, 
CMS has paused or refined several measures across various hospital quality measurement and value-based purchasing 
programs.  These  policies  are  intended  to  ensure  that  these  programs  neither  reward  nor  penalize  hospitals  based  on 
circumstances caused by the PHE that the measures were not designed to accommodate. 

In January 2022, CMS began implementing a nationwide expansion of the HHVBP Model. Under the model, home 
health agencies will receive increases or reductions to their Medicare fee-for-service payments of up to 5%, based on 
performance against specific quality measures relative to the performance of other home health providers. Calendar year 
2023 is the first performance year under the expanded HHVBP Model, and data collected in 2023 will impact payments 
in calendar year 2025. 

CMS has developed several alternative payment models that are intended to reduce costs and improve quality of 
care for Medicare beneficiaries and has signaled its intent to have states apply similar strategies in the Medicaid context. 
Examples of alternative payment models include bundled payment models in which, depending on whether overall CMS 
spending per episode exceeds or falls below a target specified by CMS and whether quality standards are met, hospitals 
may receive supplemental Medicare payments or owe repayments to CMS. Generally, participation in bundled payment 
programs  is  voluntary,  but  CMS  currently  requires  hospitals  in  selected  markets  to  participate  in  a  bundled  payment 
initiative  for  specified  orthopedic  procedures  and  in  a  model  for  end-stage  renal  disease  treatment.  In  addition,  a 
mandatory  radiation  oncology  model  was  expected  to  begin  January  1,  2023,  but  CMS  has  indefinitely  delayed  its 
implementation.  CMS  has  indicated  that  it  is  developing  more  voluntary  and  mandatory  bundled  payment  models. 
Participation in mandatory or voluntary demonstration projects, particularly demonstrations with the potential to affect 
payment, may negatively impact our results of operations. 

50
 

In  a  strategic  report  issued  in  2021  and  updated  in  2022,  the  CMS  Innovation  Center  highlighted  the  need  to 
accelerate the movement to value-based care and drive broader system transformation. By 2030, the CMS Innovation 
Center  aims  to  have  all  fee-for-service  Medicare  beneficiaries  and  the  vast  majority  of  Medicaid  beneficiaries  in  an 
accountable care relationship with providers who are responsible for quality and total medical costs. The CMS Innovation 
Center signaled its intent to streamline its payment models and to increase provider participation through implementation 
of more mandatory models. 

There  are  also  several  state-driven  value-based  care  initiatives.  For  example,  some  states  have  aligned  quality 
metrics  across  payers  through  legislation  or  regulation.  Some  private  third-party  payers  are  also  transitioning  toward 
alternative payment models or implementing other value-based care strategies. For example, many large private third-
party payers currently require hospitals to report quality data, and several private third-party payers do not reimburse 
hospitals for certain preventable adverse events. Further, we have implemented a policy pursuant to which we do not bill 
patients or third-party payers for fees or expenses incurred due to certain preventable adverse events. 

We expect value-based purchasing programs, including programs that condition reimbursement on patient outcome 
measures, to become more common and to involve a higher percentage of reimbursement amounts. It is unclear whether 
these  and  other  alternative  payment  models  will  successfully  coordinate  care  and  reduce  costs  or  whether  they  will 
decrease aggregate reimbursement. We are unable to predict our future payments or whether we will be subject to payment 
reductions under these programs or how this trend will affect our results of operations. If we are unable to meet or exceed 
the quality performance standards under any applicable value-based purchasing program, perform at a level below the 
outcomes demonstrated by our competitors, or otherwise fail to effectively provide or coordinate the efficient delivery of 
quality  health  care  services,  our  reputation  in  the  industry  may  be  negatively  impacted,  we  may  receive  reduced 
reimbursement amounts and we may owe repayments to payers, causing our revenues to decline. 

Risks related to macroeconomic conditions: 
Our overall business results may suffer during periods of general economic weakness. 

COVID-19 has adversely impacted, and may in the future adversely impact, economic conditions in the United 
States. Outside of the governmental response to COVID-19, budget deficits at the federal level and within some state and 
local government entities have had a negative impact on spending, and may continue to negatively impact spending for 
health  and  human  service  programs,  including  Medicare,  Medicaid  and  similar  programs,  which  represent  significant 
third-party payer sources for our hospitals. We anticipate that the federal deficit, the growing magnitude of Medicare and 
Medicaid expenditures and the aging of the U.S. population will continue to place pressure on government health care 
programs, and it is possible that future deficit reduction legislation will mandate additional Medicare spending reductions. 
Other  risks  we  face  during  periods  of  economic  weakness  and  high  unemployment  include  potential  declines  in  the 
population  covered  under  managed  care  agreements,  increased  patient  decisions  to  postpone  or  cancel  elective  and 
nonemergency  health  care  procedures  (including  delaying  surgical  procedures),  which  may  lead  to  poorer  health  and 
higher  acuity  interventions,  potential  increases  in  the  uninsured  and  underinsured  populations,  increased  adoption  of 
health plan structures that shift financial responsibility to patients and further difficulties in collecting patient receivables 
for copayment and deductible receivables. Further, inflationary pressures may increase operating expenses faster than 
reflected in updates to the reimbursement systems of governmental and private payers. If general economic conditions, 
including inflation, deteriorate or remain volatile or uncertain for an extended period of time, our results of operations, 
liquidity and ability to repay our outstanding debt may be harmed and the trading price of our common stock could decline. 
These factors may affect the availability, terms or timing on which we may obtain any additional funding and our ability 
to access our cash. There can be no assurance that we will be able to raise additional funds on terms acceptable to us, if 
at all. 

We are exposed to market risk related to changes in the market values of securities and interest rates. 

We are exposed to market risk related to changes in market values of securities. COVID-19 has increased volatility 
of the capital and credit markets and has adversely impacted economic conditions. The investment securities held by our 
insurance subsidiaries were $473 million at December 31, 2022. These investments are carried at fair value, with changes 
in unrealized gains and losses related to factors other than credit loss allowances being recorded as adjustments to other 
comprehensive income. At December 31, 2022, we had unrealized losses of $38 million on the insurance subsidiaries’ 
investment securities. 

We are exposed to market risk related to market illiquidity. Investment securities of our insurance subsidiaries could 
be impaired by the inability to access the capital markets. Should the insurance subsidiaries require significant amounts 
of cash in excess of normal cash requirements to pay claims and other expenses on short notice, we may have difficulty 
selling these investments in a timely manner or be forced to sell them at a price less than what we might otherwise have 

51
 

been able to in a normal market environment. We may be required to recognize credit-related impairments on long-term 
investments  in  future  periods  should  issuers  default  on  interest  payments  or  should  the  fair  market  valuations  of  the 
securities deteriorate due to ratings downgrades or other issue specific factors. 

We are also exposed to market risk related to changes in interest rates that impact the amount of the interest expense 
we incur with respect to our floating rate obligations as well as the value of certain investments. We periodically enter 
into interest rate swap agreements to manage our exposure to these fluctuations. These interest rate swap agreements 
involve  the  exchange  of  fixed  and  variable  rate  interest  payments  between  two  parties,  based  on  common  notional 
principal amounts and maturity dates. 

Risks related to ownership of our common stock: 
There can be no assurance that we will continue to pay dividends. 

In 2018, the Board of Directors initiated a cash dividend program under which the Company commenced a regular 
quarterly cash dividend. During 2022, the Board of Directors declared four quarterly dividends of $0.56 per share, or 
$2.24 per share in the aggregate, on our common stock. On January 26, 2023, our Board of Directors declared a quarterly 
dividend of $0.60 per share on our common stock payable on March 31, 2023 to stockholders of record at the close of 
business on March 17, 2023. 

The declaration, amount and timing of such dividends are subject to capital availability and determinations by our 
Board of Directors that cash dividends are in the best interest of our stockholders and are in compliance with all respective 
laws and our agreements applicable to the declaration and payment of cash dividends. Our ability to pay dividends will 
depend  upon,  among  other  factors,  our  cash  flows  from  operations,  our  available  capital  and  potential  future  capital 
requirements for strategic transactions, including acquisitions, debt service requirements, share repurchases and investing 
in our existing markets as well as our results of operations, financial condition and other factors beyond our control that 
our Board of Directors may deem relevant. A reduction in or suspension or elimination of our dividend payments could 
have a negative effect on our stock price. 

Certain of our investors may continue to have influence over us. 

On November 17, 2006, HCA Inc. was acquired by a private investor group, including affiliates of HCA founder, 
Dr. Thomas F. Frist, Jr. and certain other investors. Through their investment in Hercules Holding II and other holdings, 
certain  of  the  Frist-affiliated  investors  continue  to  hold  a  significant  interest  in  our  outstanding  common  stock 
(approximately  25%  as  of  January  31,  2023).  In  addition,  pursuant  to  a  shareholders  agreement  we  entered  into  with 
Hercules Holding II and the Frist-affiliated investors, certain representatives of these investors have the continued right 
to nominate certain of the members of our Board of Directors. As a result, certain of these investors potentially have the 
ability to influence our decisions to enter into corporate transactions (and the terms thereof) and prevent changes in the 
composition of our Board of Directors or any transaction that requires stockholder approval. 

Item 1B. 
None. 

Unresolved Staff Comments 

52
 

Item 2. 

Properties 

The  following  table  lists,  by  state,  the  number  of  hospitals  (general,  acute  care,  psychiatric  and  rehabilitation) 

directly or indirectly owned and operated by us as of December 31, 2022: 

State 
Alaska............................... 
California 
......................... 
Colorado
........................... 
.............................. 
Florida 
............................. 
Georgia
................................. 
Idaho
.............................. 
Indiana
.............................. 
Kansas 
.......................... 
Kentucky 
Louisiana
.......................... 
Missouri 
........................... 
Nevada 
............................. 
New Hampshire
................ 
North Carolina
.................. 
South Carolina
.................. 
Tennessee 
......................... 
Texas 
................................ 
Utah
.................................. 
Virginia 
............................ 

International 
England 

............................ 

Hospitals 

1 
5 
7 
46 
5 
2 
1 
4 
2 
3 
5 
3 
3 
7 
3 
14 
45 
8 
11 

Beds 

250 
1,883 
2,471 
12,988 
1,487 
442 
278 
1,400 
384 
923 
1,072 
1,524 
432 
1,181 
989 
2,742 
13,609 
1,038 
3,300 

7 
182 

888 
49,281 

In  addition  to  the  hospitals  listed  in  the  above  table,  we  directly  or  indirectly  operate  126  freestanding  surgery 
centers and 21 freestanding endoscopy centers. We also operate medical office buildings in conjunction with some of our 
hospitals.  These  office  buildings  are  primarily  occupied  by  physicians  who  practice  at  our  hospitals.  Twelve  of  our 
general, acute care hospitals and five of our other properties have been mortgaged to support our obligations under our 
senior secured cash flow credit facility. 

We maintain our headquarters in approximately 2,031,000 square feet of space in the Nashville, Tennessee area. In 
addition to the headquarters in Nashville, we maintain regional service centers related to our shared services initiatives. 
These service centers are located in markets in which we operate hospitals. 

We believe our headquarters, hospitals and other facilities are suitable for their respective uses and are, in general, 
adequate  for  our  present  needs.  Our  properties  are  subject  to  various  federal,  state  and  local  statutes  and  ordinances 
regulating their operation. Management does not believe that compliance with such statutes and ordinances will materially 
affect our financial position or results of operations. 

Item 3. 

Legal Proceedings 

The  information  set  forth  in  Note  10  –  Contingencies  in  the  notes  to  the  consolidated  financial  statements  is 

incorporated herein by reference. 

Item 4. 

Mine Safety Disclosures 

None. 

53
 

PART II
 

Item 5.	 

Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity 
Securities 

During February 2021, January 2022 and January 2023, our Board of Directors authorized $6 billion, $8 billion and 
$3  billion,  respectively,  for  share  repurchases  of  the  Company’s  outstanding  common  stock.  The  February  2021 
authorization  was  completed  during  2022,  and  at  December  31,  2022,  there  was  $1.586  billion  of  share  repurchase 
authorization  that  remained  available  under  the  January  2022  authorization.  All  repurchases  made  during  the  fourth 
quarter of 2022, as detailed below, were made pursuant to the January 2022 share repurchase authorization and were made 
in the open market. 

The following table provides certain information with respect to our repurchases of common stock from October 1, 

2022 through December 31, 2022 (dollars in billions, except per share amounts). 

Period 
October 2022 ........................... 
....................... 
November 2022 
........................ 
December 2022
.. 
Total for Fourth Quarter 2022 

Total Number 
of Shares 
Purchased 

Average Price 
Paid per Share 
205.58 
222.84 
239.71 
224.09 

1,753,666  $ 
2,733,018  $ 
2,294,497  $ 
6,781,181  $ 

Total Number 
of Shares 
Purchased as 
Part of 
Publicly 
Announced 
Plans or 
Programs 

Approximate 
Dollar Value of 
Shares That 
May Yet Be 
Purchased 
Under Publicly 
Announced 
Plans or 
Programs 

1,753,666  $ 
2,733,018  $ 
2,294,497  $ 
6,781,181  $ 

2.745 
2.136 
1.586 
1.586 

Our  common  stock  is  traded  on  the  New  York  Stock  Exchange  (“NYSE”)  (symbol  “HCA”).  During  2022,  our 
Board  of  Directors  declared  four  quarterly  dividends  of  $0.56  per  share,  or  $2.24  per  share  in  the  aggregate,  on  our 
common stock. On January 26, 2023, our Board of Directors declared a quarterly dividend of $0.60 per share on our 
common stock payable on March 31, 2023 to stockholders of record at the close of business on March 17, 2023. Future 
declarations  of  quarterly  dividends  and  the  establishment  of  future  record  and  payment  dates  are  subject  to  the  final 
determination of our Board of Directors. Our ability to declare future dividends may also from time to time be limited by 
the terms of our debt agreements. At the close of business on February 1, 2023, there were approximately 400 holders of 
record of our common stock. 

54
 

STOCK PERFORMANCE GRAPH
 
COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN
 
Among HCA Healthcare, Inc., the S&P 500 Index and the S&P Health Care Index 

HCA Healthcare, Inc.
S&P 500
S&P Health Care

 ............. 
.................................... 
..................... 

12/31/2017 
$ 

100.00  $ 
100.00 
100.00 

12/31/2018 

12/31/2019 

12/31/2020 

12/31/2021 

143.38  $ 
95.62 
106.47 

172.41  $ 
125.72 
128.64 

192.49 $ 
148.85
145.93 

303.33  $ 
191.58 
184.07 

12/31/2022 
286.20 
156.89 
180.47 

The graph shows the cumulative total return to our stockholders for the five-year period ended December 31, 2022, 
in comparison to the cumulative returns of the S&P 500 Index and the S&P Health Care Index. The graph assumes $100 
invested on December 31, 2017 in our common stock and in each index with the subsequent reinvestment of dividends. 
The stock performance shown on the graph represents historical stock performance and is not necessarily indicative of 
future stock price performance. 

Item 6. 

[Reserved] 

55
 

 
 
HCA HEALTHCARE, INC.
 

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
 
AND RESULTS OF OPERATIONS
 

Item 7. 

Management’s Discussion and Analysis of Financial Condition and Results of Operations 

The  accompanying  consolidated  financial  statements  present  certain  information  with  respect  to  the  financial 
position,  results  of  operations  and  cash  flows  of  HCA  Healthcare,  Inc.  which  should  be  read  in  conjunction  with  the 
following discussion and analysis. The terms “HCA,” “Company,” “we,” “our,” or “us,” as used herein, refer to HCA 
Healthcare, Inc. and its affiliates. The term “affiliates” means direct and indirect subsidiaries of HCA Healthcare, Inc. and 
partnerships and joint ventures in which such subsidiaries are partners. 

Forward-Looking Statements 

This  annual  report  on  Form  10-K  includes  certain  disclosures  that  contain  “forward-looking  statements,”  within  the 
meaning of the federal securities laws, which involve risks and uncertainties. Forward-looking statements include statements 
regarding  expected  share-based  compensation  expense,  expected  capital  expenditures,  expected  dividends,  expected  share 
repurchases, expected net claim payments, expected inflationary pressures and all other statements that do not relate solely to 
historical or current facts, and can be identified by the use of words like “may,” “believe,” “will,” “expect,” “project,” “estimate,” 
“anticipate,”  “plan,”  “initiative”  or  “continue.”  These  forward-looking  statements  are  based  on  our  current  plans  and 
expectations and are subject to a number of known and unknown uncertainties and risks, many of which are beyond our control, 
which could significantly affect current plans and expectations and our future financial position and results of operations. These 
factors include, but are not limited to, (1) developments related to COVID-19, including, without limitation, the length and 
severity  of  its  impact  and  the  spread  of  virus  strains  with  new  epidemiological  characteristics;  the  volume  of  canceled  or 
rescheduled procedures and the volume and acuity of COVID-19 patients cared for across our health systems; measures we are 
taking to respond to COVID-19; the impact and terms (including the termination or expiration) of government and administrative 
regulation  and  stimulus  and  relief  measures  (including  the  Families  First  Coronavirus  Response  Act,  the  Coronavirus  Aid, 
Relief,  and  Economic  Security  (“CARES”)  Act,  the  Paycheck  Protection  Program  and  Health  Care  Enhancement  Act,  the 
Consolidated  Appropriations  Act,  2021,  the  American  Rescue  Plan  Act  of  2021  (“ARPA”)  and  other  enacted  and  potential 
future legislation) and whether various stimulus and relief programs continue or new similar programs are enacted in the future; 
changes in revenues due to declining patient volumes, changes in payer mix, deteriorating macroeconomic conditions (including 
increases in uninsured and underinsured patients) and capacity constraints; potential increased expenses related to inflation or 
labor, supply chain or other expenditures; supply shortages and disruptions; and the timing, availability and adoption of effective 
medical treatments and vaccines (including boosters), (2) the impact of our substantial indebtedness and the ability to refinance 
such indebtedness on acceptable terms, (3) the impact of current and future federal and state health reform initiatives and possible 
changes to other federal, state or local laws and regulations affecting the health care industry, including but not limited to, the 
Patient  Protection  and  Affordable  Care  Act,  as  amended  by  the  Health  Care  and  Education  Reconciliation  Act  of  2010 
(collectively, the “Affordable Care Act”), additional changes to the Affordable Care Act, its implementation, or interpretation 
(including  through  executive  orders  and  court  challenges),  and  proposals  to  expand  coverage  of  federally-funded  insurance 
programs as an alternative to private insurance or establish a single-payer system (such reforms often referred to as “Medicare 
for All”), (4) the effects related to the implementation of sequestration spending reductions required under the Budget Control 
Act of 2011, related legislation extending these reductions and those required under the Pay-As-You-Go Act of 2010 (“PAYGO 
Act”) as a result of the federal budget deficit impact of the ARPA, and the potential for future deficit reduction legislation that 
may alter these spending reductions, which include cuts to Medicare payments, or create additional spending reductions, (5) 
increases in the amount and risk of collectability of uninsured accounts and deductibles and copayment amounts for insured 
accounts, (6) the ability to achieve operating and financial targets, and attain expected levels of patient volumes and control the 
costs  of  providing  services,  (7)  possible  changes  in  Medicare,  Medicaid  and  other  state  programs,  including  Medicaid 
supplemental payment programs or Medicaid waiver programs, that may impact reimbursements to health care providers and 
insurers and the size of the uninsured or underinsured population, (8) personnel related capacity constraints; increases in wages 
and the ability to attract, utilize and retain qualified management and other personnel, including affiliated physicians, nurses 
and medical and technical support personnel; and workforce disruptions, (9) the highly competitive nature of the health care 
business, (10) changes in service mix, revenue mix and surgical volumes, including potential declines in the population covered 
under third-party payer agreements, the ability to enter into and renew third-party payer provider agreements on acceptable 
terms and the impact of consumer-driven health plans and physician utilization trends and practices, (11) the efforts of health 
insurers, health care providers, large employer groups and others to contain health care costs, (12) the outcome of our continuing 
efforts to monitor, maintain and comply with appropriate laws, regulations, policies and procedures, (13) the availability and 
terms of capital to fund the expansion of our business and improvements to our existing facilities, (14) changes in accounting 
practices,  (15)  changes  in  general  economic  conditions  nationally  and  regionally  in  our  markets,  including  inflation  and 
economic and business conditions (and the impact thereof on the economy and financial markets), (16) the emergence of and 
effects related to pandemics, epidemics and infectious diseases, (17) future divestitures which may result in charges and possible 
impairments of long-lived assets, (18) changes in business strategy or development plans, (19) delays in receiving payments for 

56
 

HCA HEALTHCARE, INC.
 

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
 
AND RESULTS OF OPERATIONS (Continued)
 

Forward-Looking Statements (continued) 
services provided, (20) the outcome of pending and any future tax audits, disputes and litigation associated with our tax positions, 
(21) potential adverse impact of known and unknown government investigations, litigation and other claims that may be made 
against us, (22) the impact of potential cybersecurity incidents or security breaches, (23) our ongoing ability to demonstrate 
meaningful use of certified electronic health record (“EHR”) technology and the impact of interoperability requirements, (24) 
the impact of natural disasters, such as hurricanes and floods, physical risks from climate change or similar events beyond our 
control, (25) changes in U.S. federal, state, or foreign tax laws including interpretive guidance that may be issued by taxing 
authorities  or  other  standard  setting  bodies,  and  (26)  other  risk  factors  described  in  this  annual  report  on  Form  10-K.  As  a 
consequence, current plans, anticipated actions and future financial position and results of operations may differ from those 
expressed  in  any  forward-looking  statements  made  by  or  on  behalf  of  HCA.  You  are  cautioned  not  to  unduly  rely  on  such 
forward-looking statements when evaluating the information presented in this report, which forward-looking statements reflect 
management’s views only as of the date of this report. We undertake no obligation to revise or update any forward-looking 
statements, whether as a result of new information, future events or otherwise. 
COVID-19 

We believe the extent of COVID-19’s impact on our operating results and financial condition has been and could 
continue to be driven by many factors, most of which are beyond our control and ability to forecast. Because of these 
uncertainties, we cannot estimate how long or to what extent COVID-19 will impact our operations. 
2022 Operations Summary 

Net  income  attributable  to  HCA  Healthcare,  Inc.  totaled  $5.643  billion,  or  $19.15  per  diluted  share,  for  2022, 
compared to $6.956 billion, or $21.16 per diluted share, for 2021. The 2022 results include gains on sales of facilities of 
$1.301 billion, or $2.46 per diluted share, and losses on retirement of debt of $78 million, or $0.20 per diluted share. The 
2021 results include gains on sales of facilities of $1.620 billion, or $3.69 per diluted share, and losses on retirement of 
debt of $12 million, or $0.03 per diluted share. Our provisions for income taxes for 2022 and 2021 include tax benefits of 
$77 million, or $0.26 per diluted share, and $119 million, or $0.36 per diluted share, respectively, related to employee 
equity award settlements. All “per diluted share” disclosures are based upon amounts net of the applicable income taxes. 
Shares used for diluted earnings per share were 294.666 million shares and 328.752 million shares for the years ended 
December 31, 2022 and 2021, respectively. During 2022 and 2021, we repurchased 30.747 million and 37.812 million 
shares, respectively, of our common stock. 

Revenues increased to $60.233 billion for 2022 from $58.752 billion for 2021. Revenues increased 2.5% and 3.2%, 
respectively, on a consolidated basis and on a same facility basis for 2022, compared to 2021. The consolidated revenues 
increase can be attributed to the combined impact of a 0.4% increase in revenue per equivalent admission and a 2.1% 
increase in equivalent admissions. The same facility revenues increase resulted from the net impact of a 3.3% increase in 
equivalent admissions and a 0.1% decline in revenue per equivalent admission. 

During 2022, consolidated admissions declined 0.7% and same facility admissions increased 0.5%, compared to 
2021. Inpatient surgical volumes were flat on a consolidated basis and increased 0.9% on a same facility basis during 
2022, compared to 2021. Outpatient surgical volumes increased 1.5% on a consolidated basis and increased 1.8% on a 
same facility basis during 2022, compared to 2021. Emergency room visits increased 5.9% on a consolidated basis and 
increased 7.6% on a same facility basis during 2022, compared to 2021. 

The estimated cost of total uncompensated care increased $141 million for 2022, compared to 2021. Consolidated 
and  same  facility  uninsured  admissions  declined  6.0%  and  4.6%,  respectively,  and  consolidated  and  same  facility 
uninsured emergency room visits increased 4.4% and 6.6%, respectively, for 2022, compared to 2021. 

Interest expense totaled $1.741 billion for 2022, compared to $1.566 billion for 2021. The $175 million increase in 
interest expense for 2022 was primarily due to an increase in the average debt balance, which was partially offset by a 
decline in the average effective interest rate. 

Cash flows from operating activities declined $437 million, from $8.959 billion for 2021 to $8.522 billion for 2022. 
The decline in cash flows from operating activities was related primarily to a negative change in working capital items of 
$649  million,  mainly  from  a  decline  in  accounts  payable  and  accrued  expenses,  and  a  decline  in  net  income  of  $687 
million, excluding gains on sales of facilities and losses on retirement of debt, offset by a decline in cash payments for 
interest and income taxes of $847 million for 2022 compared to 2021. 

57
 

HCA HEALTHCARE, INC.
 

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
 
AND RESULTS OF OPERATIONS (Continued)
 

Business Strategy
 

We are committed to providing the communities we serve with high quality, convenient and cost-effective health 
care while growing our business and creating long-term value for our stockholders. We strive to be the health care system 
of choice in the communities we serve by developing comprehensive networks locally and supporting these networks 
with  enterprise  expertise  and  economies  of  scale.  Our  strategy  is  organized  around  a  framework  that  seeks  to  drive 
sustained  growth  by  delivering  operational  excellence,  attracting  exceptional  physicians  and  other  health  care 
professionals,  developing  comprehensive  services,  creating  greater  access,  and  coordinating  higher  quality  care  for 
patients. To achieve these objectives, we align our efforts around the following growth agenda: 

Grow Our Presence in Existing Markets. We believe we are well positioned in a number of large and growing 
markets that will allow us the opportunity to generate long-term, attractive growth through the expansion of our presence 
in  these  markets.  We  plan  to  continue  recruiting  and  strategically  collaborating  with  the  physician  community  and 
developing  comprehensive  service  lines  such  as  cardiology,  neurology,  oncology,  orthopedics  and  women’s  services. 
Additional  components  of  our  growth  strategy  include  providing  access  and  convenience  through  developing  various 
outpatient  facilities,  including,  but  not  limited  to  surgery  centers,  urgent  care  clinics,  freestanding  emergency  care 
facilities, imaging centers and home health and hospice services, as well as seeking to improve coordination of care and 
patient retention across our markets. 

Achieve Industry-Leading Performance in Clinical, Operational and Satisfaction Measures. Achieving high levels 
of patient safety, patient satisfaction and clinical quality are central goals of our business. To achieve these goals, we have 
implemented  a  number  of  initiatives  including  infection  reduction  initiatives,  hospitalist  programs,  advanced  health 
information  technology  and  evidence-based  medicine  programs.  We  routinely  analyze  operational  practices  from  our 
best-performing  hospitals  to  identify  ways  to  implement  organization-wide  performance  improvements  and  reduce 
clinical variation. We believe these initiatives will continue to improve patient care, help us achieve cost efficiencies and 
favorably  position  us  in  an  environment  where  our  constituents  are  increasingly  focused  on  quality,  efficacy  and 
efficiency. 

Recruit and Retain Physicians and Other Health Care Professionals to Meet the Need for High Quality Health 
Services. We depend on the quality and dedication of the health care providers and other team members who serve at our 
facilities. We believe a critical component of our growth strategy is our ability to successfully recruit and strategically 
collaborate  with  physicians  and  other  health  care  professionals  to  provide  high  quality  care.  We  attract  and  retain 
physicians and other health care professionals by providing high quality, convenient facilities with advanced technology, 
by expanding our specialty services and by building our outpatient operations. We believe our continued investment in 
the employment, recruitment and retention of physicians and other health care professionals will improve the quality of 
care at our facilities. 

Continue  to  Utilize  Economies  of  Scale  to  Grow  the  Company.  We  believe  there  is  significant  opportunity  to 
continue  to  grow  our  company  by  fully  utilizing  the  scale  and  scope  of  our  organization.  We  continue  to  invest  in 
initiatives such as care navigators, clinical data exchange and centralized patient transfer operations, which will enable us 
to improve coordination of care and patient retention across our markets. We believe our centrally managed business 
processes and ability to leverage cost-saving practices across our extensive network will enable us to continue to manage 
costs  effectively.  We  continue  to  invest  in  our  Parallon  subsidiary  group  to  deploy  key  components  of  our  support 
infrastructure, including revenue cycle management, health care group purchasing, supply chain management and staffing 
functions. 

Pursue a Disciplined Development Strategy. We continue to believe there are significant growth opportunities in 
our  markets.  We  will  continue  to  provide  financial  and  operational  resources  to  analyze  and  develop  our  in-market 
opportunities. To complement our in-market growth agenda and achieve cost savings and other benefits for the patients 
and communities we serve, we intend to focus on selectively developing and acquiring new hospitals, outpatient facilities 
and other health care service providers. 

Our strategy also emphasizes investments that advance our clinical systems and digital capabilities, transform care 
models  with  innovative  care  solutions,  expand  our  workforce  development  programs  and  enhance  our  health  care 
networks and partnerships. 

58
 

HCA HEALTHCARE, INC.
 

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
 
AND RESULTS OF OPERATIONS (Continued)
 

Critical Accounting Policies and Estimates
 

The preparation of our consolidated financial statements requires management to make estimates and assumptions 
that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities and the reported amounts 
of revenues and expenses. Our estimates are based on historical experience and various other assumptions we believe are 
reasonable under the circumstances. We evaluate our estimates on an ongoing basis and make changes to the estimates 
and related disclosures as experience develops or new information becomes known. Actual results may differ from these 
estimates. 

We believe the following critical accounting policies affect our more significant judgments and estimates used in 

the preparation of our consolidated financial statements. 

Revenues 

Revenues are recorded during the period the health care services are provided, based upon the estimated amounts 
due from payers. Estimates of contractual allowances under managed care health plans are based upon the payment terms 
specified in the related contractual agreements. Laws and regulations governing the Medicare and Medicaid programs are 
complex and subject to interpretation. The estimated reimbursement amounts are made on a payer-specific basis and are 
recorded  based  on  the  best  information  available  regarding  management’s  interpretation  of  the  applicable  laws, 
regulations  and  contract  terms.  Management  continually  reviews  the  contractual  estimation  process  to  consider  and 
incorporate updates to laws and regulations and the frequent changes in managed care contractual terms resulting from 
contract renegotiations and renewals. We have invested significant resources to refine and improve our billing systems 
and  the  information  system  data  used  to  make  contractual  allowance  estimates.  We  have  developed  standardized 
calculation processes and related employee training programs to improve the utility of our patient accounting systems. 

Patients treated at hospitals for non-elective care, who have income at or below 400% of the federal poverty level, 
are eligible for charity care, and we limit the patient responsibility amounts for these patients to a percentage of their 
annual household income, computed on a sliding scale based upon their annual income and the applicable percentage of 
the federal poverty level. Patients treated at hospitals for non-elective care, who have income above 400% of the federal 
poverty level, are eligible for certain other discounts which limit the patient responsibility amounts for these patients to a 
percentage  of  their  annual  household  income,  computed  on  a  sliding  scale  based  upon  their  annual  income  and  the 
applicable percentage of the federal poverty level. We apply additional discounts to limit patient responsibility for certain 
emergency services. The federal poverty level is established by the federal government and is based on income and family 
size.  Because  we  do  not  pursue  collection  of  amounts  determined  to  qualify  as  charity  care,  they  are  not  reported  in 
revenues. We provide discounts to uninsured patients who do not qualify for Medicaid or charity care. We may attempt 
to provide assistance to uninsured patients to help determine whether they may qualify for Medicaid, other federal or state 
assistance, or charity care. If an uninsured patient does not qualify for these programs, the uninsured discount is applied. 
Implicit  price  concessions  relate  primarily  to  amounts  due  directly  from  patients.  Estimated  implicit  price 
concessions are recorded for all uninsured accounts, regardless of the age of those accounts. Accounts are written off 
when all reasonable collection efforts have been performed. The estimates for implicit price concessions are based upon 
management’s assessment of historical writeoffs and expected net collections, business and economic conditions, trends 
in  federal,  state  and  private  employer  health  care  coverage  and  other  collection  indicators.  Management  relies  on  the 
results of detailed reviews of historical writeoffs and collections at facilities that represent a majority of our revenues and 
accounts receivable (the “hindsight analysis”) as a primary source of information in estimating the collectability of our 
accounts  receivable.  We  perform  the hindsight  analysis  quarterly,  utilizing  rolling  twelve-months  accounts  receivable 
collection and writeoff data. We believe our quarterly updates to the estimated implicit price concession amounts at each 
of our hospital facilities provide reasonable estimates of our revenues and valuations of our accounts receivable. These 
routine,  quarterly  changes  in  estimates  have  not  resulted  in  material  adjustments  to  the  valuations  of  our  accounts 
receivable or period-to-period comparisons of our revenues. 

59
 

HCA HEALTHCARE, INC.
 

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
 
AND RESULTS OF OPERATIONS (Continued)
 

Critical Accounting Policies and Estimates (Continued) 

Revenues (continued) 

To quantify the total impact of and trends related to uninsured patient accounts, we believe it is beneficial to view 
total  uncompensated  care,  which  is  comprised  of  charity  care,  uninsured  discounts  and  implicit  price  concessions.  A 
summary of the estimated cost of total uncompensated care for the years ended December 31, follows (dollars in millions): 

Patient care costs (salaries and benefits, supplies, other operating 

expenses and depreciation and amortization) ..........................................  $ 

Cost-to-charges ratio (patient care costs as percentage of gross 

patient charges) ........................................................................................ 
Total uncompensated care...........................................................................  $ 
Multiply by the cost-to-charges ratio .......................................................... 
Estimated cost of total uncompensated care ...............................................  $ 

2022 

2021 

2020 

51,180 

$ 

49,074 

$ 

44,271 

11.0% 

31,734 

11.0% 
3,491 

11.3% 

29,642 

11.3% 
3,350 

$ 

$ 

$ 

$ 

12.0% 

29,029 

12.0% 
3,483 

Management expects a continuation of the challenges related to the collection of the patient due accounts. Adverse 
changes in the percentage of our patients having adequate health care coverage, increases in patient responsibility amounts 
under certain health care coverages, general economic conditions, patient accounting service center operations, payer mix, 
or trends in federal, state, and private employer health care coverage could affect the collection of accounts receivable, 
cash flows and results of operations. 

Professional Liability Claims 

We, along with virtually all health care providers, operate in an environment with professional liability risks. Our 
facilities are insured by our insurance subsidiary for losses up to $75 million per occurrence, subject, in most cases, to a 
$15  million  per  occurrence  self-insured  retention.  The  insurance  subsidiary  has  obtained  reinsurance  for  professional 
liability risks generally above a retention level of either $25 million or $35 million per occurrence, depending on the 
jurisdiction for the related claim. We purchase excess insurance on an occurrence reported basis for losses in excess of 
amounts insured by our insurance subsidiary. Provisions for losses related to professional liability risks were $517 million, 
$453 million and $435 million for the years ended December 31, 2022, 2021 and 2020, respectively. During 2022, 2021 
and 2020, we recorded reductions to the provision for professional liability risks of $55 million, $87 million and $112 
million, respectively, due to the receipt of updated actuarial information. 

Reserves for professional liability risks represent the estimated ultimate cost of all reported and unreported losses 
incurred through the respective consolidated balance sheet dates. The estimated ultimate cost includes estimates of direct 
expenses and fees paid to outside counsel and experts, but does not include the general overhead costs of our insurance 
subsidiary or corporate office. Individual case reserves are established based upon the particular circumstances of each 
reported  claim  and  represent  our  estimates  of  the  future  costs  that  will  be  paid  on  reported  claims.  Case  reserves  are 
reduced as claim payments are made and are adjusted upward or downward as our estimates regarding the amounts of 
future losses are revised. Once the case reserves for known claims are determined, information is stratified by loss layers 
and retentions, accident years, reported years, and geographic location of our hospitals. Several actuarial methods are 
employed to utilize this data to produce estimates of ultimate losses and reserves for incurred but not reported claims, 
including:  paid  and  incurred  extrapolation  methods  utilizing  paid  and  incurred  loss  development  to  estimate  ultimate 
losses;  frequency  and  severity  methods  utilizing  paid  and  incurred  claims  development  to  estimate  ultimate  average 
frequency (number of claims) and ultimate average severity (cost per claim); and Bornhuetter-Ferguson methods which 
add  expected  development  to  actual  paid  or  incurred  experience  to  estimate  ultimate  losses.  These  methods  use  our 
company-specific  historical  claims  data  and  other  information.  Company-specific  claim  reporting  and  payment  data 
collected  over  an  approximate  20-year  period  is  used  in  our  reserve  estimation  process.  This  company-specific  data 
includes information regarding our business, including historical paid losses and loss adjustment expenses, historical and 
current case loss reserves, actual and projected hospital statistical data, professional liability retentions for each policy 
year, geographic information and other data. 

60
 

HCA HEALTHCARE, INC.
 

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
 
AND RESULTS OF OPERATIONS (Continued)
 

Critical Accounting Policies and Estimates (Continued) 

Professional Liability Claims (continued) 

Reserves  and  provisions  for  professional  liability  risks  are  based  upon  actuarially  determined  estimates.  The 
estimated reserve ranges, net of amounts receivable under reinsurance contracts, were $1.802 billion to $2.159 billion at 
December 31, 2022 and $1.752 billion to $2.098 billion at December 31, 2021. Our estimated reserves for professional 
liability claims may change significantly if future claims differ from expected trends. We perform sensitivity analyses 
which  model  the  volatility  of  key  actuarial  assumptions  and  monitor  our  reserves  for  adequacy  relative  to  all  our 
assumptions  in  the  aggregate.  Based  on  our  analysis,  we  believe  the  estimated  professional  liability  reserve  ranges 
represent the reasonably likely outcomes for ultimate losses. We consider the number and severity of claims to be the 
most significant assumptions in estimating reserves for professional liabilities. A 2.5% change in the expected frequency 
trend could be reasonably likely and would increase the reserve estimate by $29 million or reduce the reserve estimate by 
$28 million. A 2.5% change in the expected claim severity trend could be reasonably likely and would increase the reserve 
estimate by $135 million or reduce the reserve estimate by $123 million. We believe adequate reserves have been recorded 
for our professional liability claims; however, due to the complexity of the claims, the extended period of time to resolve 
the claims and the wide range of potential outcomes, our ultimate liability for professional liability claims could change 
by more than the estimated sensitivity amounts and could change materially from our current estimates. 

The reserves for professional liability risks cover approximately 2,000 and 2,100 individual claims at December 
31, 2022 and 2021, respectively, and estimates for unreported potential claims. The time period required to resolve these 
claims can vary depending upon the jurisdiction and whether the claim is settled or litigated. The average time period 
between the occurrence and final resolution for our professional liability claims is approximately five years, although the 
facts and circumstances of each individual claim can result in an occurrence-to-resolution timeframe that varies from this 
average. The estimation of the timing of payments beyond a year can vary significantly. 

Reserves for professional liability risks were $2.043 billion and $2.022 billion at December 31, 2022 and 2021, 
respectively.  The  current  portion  of  these  reserves,  $515  million  and  $508  million  at  December  31,  2022  and  2021, 
respectively, is included in “other accrued expenses.” Obligations covered by reinsurance and excess insurance contracts 
are included in the reserves for professional liability risks, as we remain liable to the extent reinsurers and excess insurance 
carriers  do  not  meet  their  obligations.  Reserves  for  professional  liability  risks  (net  of  $60  million  and  $55  million 
receivable under reinsurance and excess insurance contracts at December 31, 2022 and 2021, respectively) were $1.983 
billion and $1.967 billion at December 31, 2022 and 2021, respectively. The estimated total net reserves for professional 
liability  risks  at  December  31,  2022  and  2021  are  comprised  of  $793  million  and  $874  million,  respectively,  of  case 
reserves for known claims and $1.190 billion and $1.093 billion, respectively, of reserves for incurred but not reported 
claims. 

Changes in our professional liability reserves, net of reinsurance recoverable, for the years ended December 31, are 

summarized in the following table (dollars in millions): 

Net reserves for professional liability claims, January 1 

............ 

$ 

Provision for current year claims 
Favorable development related to prior years’ claims 

............................................ 
............ 
.................................................................... 

Total provision 

Payments for current year claims
Payments for prior years’ claims

............................................ 
............................................. 
.......................................................... 

Total claim payments 

2022 

2021 

1,967  $  1,924 

538 
(21) 
517 

4 
493 
497 

530 
(77)
453 

5
379 
384 

2020 
$  1,781 

519
 
(84)

435
 

5
 
287
 
292
 

Effect of new retroactive reinsurance contracts

Net reserves for professional liability claims, December 31

...................... 
 ...... 

(4) 

(26)
1,983  $  1,967 

— 
$  1,924 

$ 

61
 

 
 
 
HCA HEALTHCARE, INC.
 

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
 
AND RESULTS OF OPERATIONS (Continued)
 

Critical Accounting Policies and Estimates (Continued) 

Income Taxes 

We calculate our provision for income taxes using the asset and liability method, under which deferred tax assets 
and liabilities are recognized by identifying the temporary differences that arise from the recognition of items in different 
periods for tax and accounting purposes. Deferred tax assets generally represent the tax effects of amounts expensed in 
our income statement for which tax deductions will be claimed in future periods. Interest and penalties payable to taxing 
authorities are included as a component of our provision for income taxes. We have elected to treat taxes incurred on 
global intangible low-taxed income as a period expense. 

Although we believe we have properly reported taxable income and paid taxes in accordance with applicable laws, 
federal, state or foreign taxing authorities may challenge our tax positions upon audit. Significant judgment is required in 
determining and assessing the impact of uncertain tax positions. We report a liability for unrecognized tax benefits from 
uncertain tax positions taken or expected to be taken in our income tax returns. During each reporting period, we assess 
the facts and circumstances related to uncertain tax positions. If the realization of unrecognized tax benefits is deemed 
probable based upon new facts and circumstances, the estimated liability and the provision for income taxes are reduced 
in the current period. Final audit results may vary from our estimates. 

Results of Operations 

Revenue/Volume Trends 

Our  revenues  depend  upon  inpatient  occupancy  levels,  the  ancillary  services  and  therapy  programs  ordered  by 
physicians and provided to patients, the volume of outpatient procedures and the charge and negotiated payment rates for 
such services. Patient volumes and the related revenues were negatively impacted by COVID-19 beginning in the first 
half of 2020, and subsequent periods through the first half of 2022 have experienced fluctuations in COVID-19 volumes 
and revenues through the various surges, impacting comparisons for most of our patient volume and revenues operating 
statistics.  Gross  charges  typically  do  not  reflect  what  our  facilities  are  actually  paid.  Our  facilities  have  entered  into 
agreements  with  third-party  payers,  including  government  programs  and  managed  care  health  plans,  under  which  the 
facilities are paid based upon the cost of providing services, predetermined rates per diagnosis, fixed per diem rates or 
discounts from gross charges. We do not pursue collection of amounts related to patients who meet our guidelines to 
qualify for charity care; therefore, they are not reported in revenues. We provide discounts to uninsured patients who do 
not qualify for Medicaid or charity care. 

Revenues increased 2.5% to $60.233 billion for 2022 from $58.752 billion for 2021 and increased 14.0% for 2021 
from $51.533 billion for 2020. The increase in revenues in 2022 can be attributed to the combined impact of a 0.4% 
increase in revenue per equivalent admission and a 2.1% increase in equivalent admissions compared to the prior year. 
The increase in revenues in 2021 can be primarily attributed to the combined impact of a 6.8% increase in revenue per 
equivalent admission and a 6.8% increase in equivalent admissions compared to the prior year. 

Same facility revenues increased 3.2% for the year ended December 31, 2022 compared to the year ended December 
31, 2021 and increased 14.4% for the year ended December 31, 2021 compared to the year ended December 31, 2020. 
The 3.2% increase for 2022 can be attributed to the net impact of a 3.3% increase in equivalent admissions and a 0.1% 
decline in revenue per equivalent admission. The 14.4% increase for 2021 can be primarily attributed to the combined 
impact of a 6.3% increase in revenue per equivalent admission and a 7.6% increase in equivalent admissions. 

Consolidated admissions declined 0.7% during 2022 compared to 2021 and increased 4.0% during 2021 compared 
to 2020. Consolidated surgeries increased 1.0% during 2022 compared to 2021 and increased 8.9% during 2021 compared 
to 2020. Consolidated emergency room visits increased 5.9% during 2022 compared to 2021 and increased 13.8% during 
2021 compared to 2020. 

Same facility admissions increased 0.5% during 2022 compared to 2021 and increased 4.8% during 2021 compared 
to 2020. Same facility surgeries increased 1.5% during 2022 compared to 2021 and increased 9.0% during 2021 compared 
to 2020. Same facility emergency room visits increased 7.6% during 2022 compared to 2021 and increased 15.1% during 
2021 compared to 2020. 

62
 

HCA HEALTHCARE, INC.
 

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
 
AND RESULTS OF OPERATIONS (Continued)
 

Results of Operations (continued) 

Revenue/Volume Trends (continued) 

Same facility uninsured emergency room visits increased 6.6% and same facility uninsured admissions declined 
4.6% during 2022 compared to 2021. Same facility uninsured emergency room visits declined 6.3% and same facility 
uninsured admissions declined 3.5% during 2021 compared to 2020. 

The  approximate  percentages  of  our  admissions  related  to  Medicare,  managed  Medicare,  Medicaid,  managed 
Medicaid, managed care and insurers and the uninsured for the years ended December 31, 2022, 2021 and 2020 are set 
forth below. 

Medicare ......................................................... 
Managed Medicare 
......................................... 
Medicaid 
......................................................... 
Managed Medicaid 
......................................... 
Managed care and insurers 
............................. 
Uninsured
........................................................ 

Years Ended December 31, 
2020 
2021 
2022 

22% 
23 
4 
14 
30 
7 
100% 

23% 
21 
5 
13 
31 
7 
100% 

26% 
20 
5 
12 
29 
8 
100% 

The approximate percentages of our inpatient revenues related to Medicare, managed Medicare, Medicaid, managed 

Medicaid, and managed care and insurers for the years ended December 31, 2022, 2021 and 2020 are set forth below. 

Medicare 
Managed Medicare 
Medicaid 
Managed Medicaid 
Managed care and insurers 

......................................................... 
......................................... 
......................................................... 
......................................... 
............................. 

Years Ended December 31, 
2020
 
2021 
2022 

23% 
17 
7 
8 
45 
100% 

23% 
16 
6
6
49 
100% 

27%
 
15
 
5
 
6
 
47
 
100% 

At December 31, 2022, we owned and operated 46 hospitals and 30 surgery centers in the state of Florida. Our 
Florida facilities’ revenues totaled $13.812 billion, $13.670 billion and $11.442 billion for the years ended December 31, 
2022, 2021 and 2020, respectively. At December 31, 2022, we owned and operated 45 hospitals and 37 surgery centers 
in the state of Texas. Our Texas facilities’ revenues totaled $16.450 billion, $15.344 billion and $13.528 billion for the 
years  ended  December  31,  2022,  2021  and  2020,  respectively.  During  2022,  2021  and  2020,  58%,  56%  and  56%, 
respectively, of our admissions and 50%, 49% and 49%, respectively, of our revenues were generated by our Florida and 
Texas  facilities.  Uninsured  admissions  in  Florida  and  Texas  represented  74%,  72%  and  72%,  respectively,  of  our 
uninsured admissions each year during 2022, 2021 and 2020. 

We  receive  a  significant  portion  of  our  revenues  from  government  health  programs,  principally  Medicare  and 
Medicaid, which are highly regulated and subject to frequent and substantial changes. Some state Medicaid programs use, 
or  have  applied  to  use,  waivers  granted  by  CMS  to  implement  Medicaid  expansion,  impose  different  eligibility  or 
enrollment  restrictions,  or  otherwise  implement  programs  that  vary  from  federal  standards.  We  receive  supplemental 
payments in several states. We are aware these supplemental payment programs are currently being reviewed by certain 
state agencies and some states have made requests to CMS to replace their existing supplemental payment programs. It is 
possible these reviews and requests will result in the restructuring of such supplemental payment programs and could 
result in the payment programs being reduced or eliminated. Because deliberations about these programs are ongoing, we 
are  unable  to  estimate  the  financial  impact  the  program  structure  modifications,  if  any,  may  have  on  our  results  of 
operations. 

63
 

HCA HEALTHCARE, INC.
 

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
 
AND RESULTS OF OPERATIONS (Continued)
 

Results of Operations (continued) 
Key Performance Indicators 

We  present  certain  metrics  and  statistical  information  that  management  uses  when  assessing  our  results  of 
operations.  We  believe  this  information  is  useful  to  investors  as  it  provides  insight  to  how  management  evaluates 
operational  performance  and  trends  between  reporting  periods.  Information  on  how  these  metrics  and  statistical 
information are defined is provided in the following tables summarizing operating results and operating data. 

Operating Results Summary 

The  following  are  comparative  summaries  of  operating  results  and  certain  operating  data  for  the  years  ended 

December 31, 2022, 2021 and 2020 (dollars in millions): 

Revenues 

........................................................... 

Salaries and benefits
Supplies
Other operating expenses 
Equity in earnings of affiliates
Depreciation and amortization
Interest expense 
Losses (gains) on sales of facilities
Losses on retirement of debt

........................................... 
............................................................. 
................................... 
............................ 
............................ 
................................................. 
..................... 
............................... 

............................... 
................................. 
........................................................ 

Income before income taxes 
Provision for income taxes 
Net income 
Net income attributable to noncontrolling 
interests 
Net income attributable to HCA Healthcare, Inc. $ 

............................................................. 

% changes from prior year: 

Revenues 
Income before income taxes .......................
Net income  attributable to HCA  Healthcare, Inc
Admissions(a)
Equivalent admissions(b) 
Revenue per equivalent admission

....................................................... 
.... 
.... 
................................................ 
............................... 
.................. 

Same facility % changes from prior year(c):
 

Revenues 
Admissions(a)
Equivalent admissions(b) 
Revenue per equivalent admission

....................................................... 
................................................ 
............................... 
.................. 

2022 

Amount 
60,233 
$ 

Ratio 
100.0 

2021 

Amount 
58,752 
$ 

Ratio 
100.0 

2020 

Amount 
51,533 
$ 

Ratio 
100.0 

27,685 
9,371 
11,155 
(45) 
2,969 
1,741 
(1,301) 
78 
51,653 
8,580 
1,746 
6,834 

1,191 
5,643 

2.5% 

(12.7) 
(18.9) 
(0.7) 
2.1 
0.4 

3.2 
0.5 
3.3 
(0.1) 

46.0 
15.6 
18.5 
(0.1) 
5.0 
2.9 
(2.2) 
0.1 
85.8 
14.2 
2.9 
11.3 

26,779 
9,481 
9,961 
(113) 
2,853 
1,566 
(1,620) 
12 
48,919 
9,833 
2,112 
7,721 

1.9 
9.4 

$ 

765 
6,956 

45.6 
16.1 
17.0 
(0.2) 
4.9 
2.7 
(2.8) 
— 
83.3 
16.7 
3.6 
13.1 

1.3 
11.8 

23,874 
8,369 
9,307 
(54) 
2,721 
1,584 
7 
295
46,103 
5,430 
1,043 
4,387 

633 
3,754 

$ 

46.3
 
16.2
 
18.1
 
(0.1)
 
5.3
 
3.1
 
—
 
0.6
 
89.5 
10.5 
2.0 
8.5 

1.2 
7.3 

14.0% 
81.1 
85.3 
4.0 
6.8 
6.8 

14.4 
4.8 
7.6 
6.3 

0.4% 
3.6 
7.1 
(4.7) 
(9.2) 
10.5 

(0.1)
 
(4.8)
 
(9.3)
 
10.1
 

(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  revenue  and  gross  outpatient  revenue  and  then  dividing  the  resulting  amount  by  gross 
inpatient  revenue.  The  equivalent  admissions  computation  “equates”  outpatient  revenue  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 that were either acquired, 

divested or removed from service during the current and prior year. 

64
 

 
HCA HEALTHCARE, INC.
 

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
 
AND RESULTS OF OPERATIONS (Continued)
 

Results of Operations (continued) 

Operating Results Summary (continued) 

Operating Data: 

Number of hospitals at end of period ........................................................ 
Number of freestanding outpatient surgical centers at end of period(a)
 .... 
Number of licensed beds at end of period(b)
 ............................................ 
Weighted average beds in service(c)
..
 .......................................................
Admissions(d)
.. 
..........................................................................................
Equivalent admissions(e)
..
.........................................................................
Average length of stay (days)(f)
..
..............................................................
Average daily census(g)
..
 ..........................................................................
Occupancy(h).
.. 
..........................................................................................
Emergency room visits(i)
..
. 
.......................................................................
Outpatient surgeries(j) 
..
.............................................................................
Inpatient surgeries(k)
..
...............................................................................
Days revenues in accounts receivable(l) 
..
.................................................
Outpatient revenues as a % of patient revenues(m) 
.................................. 

2022 

182 
126 
49,281 
41,982 
2,075,459 
3,611,299 
5.1 
28,778 

72% 

8,971,951 
1,023,239 
522,151 
53 
38% 

2021 

182 
125 
48,803 
42,148 
2,089,975 
3,536,238 
5.2 
29,752 

74% 

8,475,345 
1,008,236 
522,069 
49 
37% 

2020 

185 
121 
49,265 
42,246 
2,009,909 
3,312,330 
5.1 
27,734 

69% 

7,450,307 
882,483 
522,385 
45 
35% 

(a)	  Excludes freestanding endoscopy centers (21 at December 31, 2022, 2021 and 2020). 
(b)	  Licensed beds are those beds for which a facility has been granted approval to operate from the applicable state 

licensing agency. 

(c)	  Represents the average number of beds in service, weighted based on periods owned. 
(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  revenue  and  gross  outpatient  revenue  and  then  dividing  the  resulting  amount  by  gross 
inpatient  revenue.  The  equivalent  admissions  computation  “equates”  outpatient  revenue  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 average number of admitted patients in our hospital beds each day. 
(h)	  Represents the percentage of hospital beds in service that are occupied by patients (admitted and observations). 

Both average daily census and occupancy rate provide measures of the utilization of inpatient rooms. 

(i)	  Represents the number of patients treated in our emergency rooms. 
(j)	  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. 

(k)	  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. 

(l)	  Revenues per day is calculated by dividing the revenues for the fourth quarter of each year by the days in the quarter. 
Days revenues in accounts receivable is then calculated as accounts receivable at the end of the period divided by 
revenues per day. 

(m)	  Represents the percentage of patient revenues related to patients who are not admitted to our hospitals. 

65
 

 
 
 
 
 
 
 
 
HCA HEALTHCARE, INC.
 

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
 
AND RESULTS OF OPERATIONS (Continued)
 

Results of Operations (continued) 

Years Ended December 31, 2022 and 2021 

Net  income  attributable  to  HCA  Healthcare,  Inc.  totaled  $5.643  billion,  or  $19.15  per  diluted  share,  for  2022, 
compared to $6.956 billion, or $21.16 per diluted share, for 2021. The 2022 results include gains on sales of facilities of 
$1.301 billion, or $2.46 per diluted share, and losses on retirement of debt of $78 million, or $0.20 per diluted share. The 
2022 results include additional expenses and lost revenues estimated at approximately $85 million associated with the 
impact of Hurricane Ian primarily on our Florida facilities. This amount is prior to any insurance recoveries. Revenues 
for 2022 include $244 million and other operating expenses include $90 million from provider tax assessments related to 
the period September through December 2021 for the Texas directed payment program that was approved by CMS in 
March 2022 for the program year that began September 1, 2021. The 2021 results include gains on sales of facilities of 
$1.620 billion, or $3.69 per diluted share, and losses on retirement of debt of $12 million, or $0.03 per diluted share. Our 
provisions for income taxes for 2022 and 2021 include tax benefits of $77 million, or $0.26 per diluted share, and $119 
million, or $0.36 per diluted share, respectively, related to employee equity award settlements. All “per diluted share” 
disclosures are based upon amounts net of the applicable income taxes. Shares used for diluted earnings per share were 
294.666 million shares and 328.752 million shares for the years ended December 31, 2022 and 2021, respectively. During 
2022 and 2021, we repurchased 30.747 million and 37.812 million shares, respectively, of our common stock. 

During 2022, consolidated admissions declined 0.7% and same facility admissions increased 0.5% compared to 
2021.  Consolidated  inpatient  surgeries  were  flat  and  same  facility  inpatient  surgeries  increased  0.9%  during  2022 
compared to 2021. Emergency room visits increased 5.9% on a consolidated basis and increased 7.6% on a same facility 
basis during 2022 compared to 2021. 

Revenues increased 2.5% to $60.233 billion for 2022 from $58.752 billion for 2021. The increase in revenues was 
due to the combined impact of a 0.4% increase in revenue per equivalent admission and a 2.1% increase in equivalent 
admissions compared to 2021. Same facility revenues increased 3.2% due primarily to the net impact of a 3.3% increase 
in equivalent admissions and a 0.1% decline in revenue per equivalent admission compared to 2021. 

Salaries and benefits, as a percentage of revenues, were 46.0% in 2022 and 45.6% in 2021. Salaries and benefits 
per  equivalent  admission  increased  1.2%  in  2022  compared  to  2021.  Same  facility  salaries  and  benefits  per  full  time 
equivalent increased 3.3% for 2022 compared to 2021 as inflation has impacted our labor costs and as we continue to 
utilize certain contract, overtime and other premium rate labor costs to support our clinical staff and patients. We expect 
inflationary pressures will continue to impact our labor costs in the future. We intend to continue reducing our utilization 
of and rates paid for premium rate labor, but our ability to mitigate labor cost challenges may be affected by labor market 
conditions and other factors.  Share-based compensation expense was $341 million in 2022 and $440 million in 2021. 

Supplies,  as  a  percentage  of  revenues,  were  15.6%  in  2022  and  16.1%  in  2021.  Supply  costs  per  equivalent 
admission declined 3.2% in 2022 compared to 2021. Supply costs per equivalent admission increased 2.4% for medical 
devices, but declined 18.8% for pharmacy supplies and 1.6% for general medical and surgical items in 2022 compared to 
2021. The decline in pharmacy supplies is primarily related to higher utilization of certain COVID-19 therapies during 
2021. 

Other operating expenses, as a percentage of revenues, were 18.5% in 2022 and 17.0% in 2021. Other operating 
expenses  are  primarily  comprised  of  contract  services,  professional  fees,  repairs  and  maintenance,  rents  and  leases, 
utilities, insurance (including professional liability insurance) and nonincome taxes. The 1.5% increase in other operating 
expenses,  as  a  percentage  of  revenues  for  2022  compared  to  2021,  was  primarily  related  to  increased  costs  for 
supplemental payment programs in certain states, as well as increased professional fees, utilities and insurance premiums. 
We have seen inflation have a negative impact on certain of these expenses and expect inflationary pressures will continue 
to impact operating expenses in 2023. Provisions for losses related to professional liability risks were $517 million and 
$453 million for 2022 and 2021, respectively. During 2022 and 2021, we recorded reductions of $55 million, or $0.14 
per diluted share, and $87 million, or $0.20 per diluted share, respectively, to our provision for professional liability risks 
related to the receipt of updated actuarial information. 

Equity in earnings of affiliates was $45 million for 2022 and $113 million for 2021.  The decline of $68 million is 

primarily related to the sale of an equity investment during 2021. 

66
 

HCA HEALTHCARE, INC.
 

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
 
AND RESULTS OF OPERATIONS (Continued)
 

Results of Operations (continued) 

Years Ended December 31, 2022 and 2021 (continued) 

Depreciation and amortization, as a percentage of revenues, were 5.0% in 2022 and 4.9% in 2021. Depreciation 
expense was $2.941 billion for 2022 and $2.826 billion for 2021. The increase of $115 million in depreciation expense 
relates  primarily  to  capital  expenditures  at  our  existing  facilities  (same  facility  depreciation  expense  increased  $134 
million). 

Interest expense increased to $1.741 billion for 2022 from $1.566 billion for 2021. The $175 million increase in 
interest expense was due to an increase in the average debt balance, which was partially offset by a decline in the average 
effective interest rate. Our average debt balance was $37.363 billion for 2022 compared to $32.109 billion for 2021. The 
average effective interest rate for our long-term debt was 4.7% for 2022 and 4.9% for 2021. 

Gains on sales of facilities were $1.301 billion and $1.620 billion for 2022 and 2021, respectively. The gains on 
sales of facilities for 2022 are primarily related to the sales of controlling interests in a subsidiary of our group purchasing 
organization and subsidiaries of our research entities. The gains on sales of facilities for 2021 are primarily related to the 
sales of five hospitals in Georgia and other health care entity investments. 

During 2022, we issued $6.000 billion aggregate principal amount of senior notes. We used a portion of the net 
proceeds to pay down our revolving credit facilities, and we redeemed all $1.250 billion outstanding aggregate principal 
amount of our 4.75% senior notes due 2023 and all $1.250 billion outstanding aggregate principal amount of our 5.875% 
senior notes due 2023. The pretax loss on retirement of debt for these two redemptions was $78 million. During 2021, we 
issued  $2.350  billion  aggregate  principal  amount  of  senior  notes.  We  also  amended  and  restated  our  senior  secured 
revolving  credit  facility  and  our  senior  secured  asset-based  revolving  credit  facility,  including  increasing  availability 
under the asset-based revolving credit facility to $4.500 billion, extending the maturity date on both facilities to June 30, 
2026 and entering into a new $1.500 billion term loan A facility and a new $500 million term loan B facility (the “Credit 
Agreement  Transactions”).  We  used  the  net  proceeds  from  the  senior  notes  issuance  and  the  Credit  Agreement 
Transactions to retire $3.657 billion of term loan facilities. The pretax loss on retirement of debt was $12 million. 

The  effective  income  tax  rates  were  23.6%  and  23.3%  for  2022  and  2021,  respectively.  The  effective  tax  rate 

computations exclude net income attributable to noncontrolling interests as it relates to consolidated partnerships. 

Net income attributable to noncontrolling interests increased from $765 million for 2021 to $1.191 billion for 2022. 
The increase in net income attributable to noncontrolling interests related primarily to the gain on the sale of a controlling 
interest in a subsidiary of our group purchasing organization and the partnership operations of two of our Texas markets. 
For results of operations comparisons relating to years ending December 31, 2021 and 2020, refer to our annual 
report on Form 10-K, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 
for the year ended December 31, 2021, filed with the Securities and Exchange Commission (“SEC”) on February 18, 
2022. 
Liquidity and Capital Resources 

Our primary cash requirements are paying our operating expenses, servicing our debt, capital expenditures on our 
existing  properties,  acquisitions  of  hospitals  and  health  care  entities,  repurchases  of  our  common  stock,  dividends  to 
stockholders  and  distributions  to  noncontrolling  interests.  Our  primary  cash  sources  are  cash  flows  from  operating 
activities, issuances of debt and equity securities and sales of hospitals and health care entities. 

Cash provided by operating activities totaled $8.522 billion in 2022 compared to $8.959 billion in 2021 and $9.232 
billion in 2020. The $437 million decline in cash provided by operating activities for 2022, compared to 2021, was related 
primarily to a negative change in working capital items of $649 million, mainly from a decline in accounts payable and 
accrued  expenses,  and  a  decline  in  net  income  of  $687  million,  excluding  gains  on  sales  of  facilities  and  losses  on 
retirement of debt, offset by a decline in cash payments for interest and income taxes of $847 million for 2022 compared 
to 2021. The $273 million decline in cash provided by operating activities for 2021, compared to 2020, was related to a 
negative change in working capital items of $1.781 billion, primarily from an increase in accounts receivable, offset by 
the increase in net income, excluding the non-cash impact of losses and gains on sales of facilities, losses on retirement 
of debt and depreciation and amortization. Cash payments for interest and income taxes increased $1.075 billion for 2021 
compared to 2020. During 2020, we deferred $688 million of Social Security taxes as allowed for under the CARES Act. 
Half of these taxes were paid in January 2022 and the remainder was paid in January 2023. Working capital totaled $3.741 
billion at December 31, 2022 and $3.960 billion at December 31, 2021. 

67
 

HCA HEALTHCARE, INC.
 

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
 
AND RESULTS OF OPERATIONS (Continued)
 

Liquidity and Capital Resources (continued)
 

Cash used in investing activities was $3.389 billion, $2.643 billion and $3.393 billion in 2022, 2021 and 2020, 
respectively. Excluding acquisitions, capital expenditures were $4.395 billion in 2022, $3.577 billion in 2021 and $2.835 
billion in 2020. In response to the risks COVID-19 presented to our business, we reduced certain planned projects and 
capital  expenditures  during  2020.  Planned  capital  expenditures  are  expected  to  approximate  $4.3  billion  in  2023.  At 
December 31, 2022, there were projects under construction which had an estimated additional cost to complete and equip 
over  the  next  five  years  of  approximately  $4.707  billion.  We  expect  to  finance  capital  expenditures  with  internally 
generated and borrowed funds. We expended $224 million, $1.105 billion and $568 million for acquisitions of hospitals 
and health care entities during 2022, 2021 and 2020, respectively. Cash flows from sales of hospitals and health care 
entities declined from $2.160 billion for 2021 (primarily related to the proceeds from our sales of five hospitals in Georgia 
and other health care entity investments) to $1.237 billion of net proceeds for 2022 (primarily related to proceeds from 
our sales of other health care entities). 

Cash used in financing activities totaled $5.656 billion in 2022, $6.655 billion in 2021 and $4.677 billion in 2020. 
During 2022, we had a net increase of $3.287 billion in our indebtedness, paid dividends of $653 million and paid $7.000 
billion for repurchases of common stock. During 2021, we had a net increase of $3.255 billion in our indebtedness, paid 
dividends of $624 million and paid $8.215 billion for repurchases of common stock. During 2020, we made net payments 
of $3.217 billion related to our indebtedness, paid dividends of $153 million and paid $441 million for repurchases of our 
common stock. During 2022, 2021 and 2020, we made distributions to noncontrolling interests of $1.025 billion, $749 
million and $626 million, respectively. The increase in distributions in 2022 is related to the sale of a controlling interest 
in a subsidiary of our group purchasing organization. 

We,  or  our  affiliates,  may  in  the  future  repurchase  portions  of  our  debt  or  equity  securities,  subject  to  certain 
limitations, from time to time in either the open market or through privately negotiated transactions, in accordance with 
applicable SEC and other legal requirements. The timing, prices, and sizes of purchases depend upon prevailing trading 
prices, general economic and market conditions, and other factors, including applicable securities laws. 

During February 2021, January 2022 and January 2023, our Board of Directors authorized $6 billion, $8 billion and 
$3  billion,  respectively,  for  share  repurchases  of  the  Company’s  outstanding  common  stock.  The  February  2021 
authorization  was  completed  during  2022,  and  at  December  31,  2022,  there  was  $1.586  billion  of  share  repurchase 
authorization that remained available under the January 2022 authorization. Funds for the repurchase of debt or equity 
securities have, and are expected to, come primarily from cash generated from operations and borrowed funds. 

During 2022, our Board of Directors declared four quarterly dividends of $0.56 per share, or $2.24 per share in the 
aggregate, on our common stock. On January 26, 2023, our Board of Directors declared a quarterly dividend of $0.60 per 
share on our common stock payable on March 31, 2023 to stockholders of record at the close of business on March 17, 
2023. The timing and amount of future cash dividends will vary based on a number of factors, including future capital 
requirements  for  strategic  transactions,  share  repurchases  and  investing  in  our  existing  markets,  the  availability  of 
financing on acceptable terms, debt service requirements, changes to applicable tax laws or corporate laws, changes to 
our business model and periodic determinations by our Board of Directors that cash dividends are in the best interest of 
stockholders and are in compliance with all applicable laws and agreements of the Company. 

In addition to cash flows from operations, available sources of capital include amounts available under our senior 
secured credit facilities ($3.535 billion as of December 31, 2022 and $4.445 billion as of January 31, 2023) and anticipated 
access to public and private debt and equity markets. Effective in January 2023, availability under our senior secured 
revolving credit facility was increased by $1.500 billion to total $3.500 billion. 

Investments of our insurance subsidiaries, held to maintain statutory equity levels and to provide liquidity to pay 
claims, totaled $473 million and $541 million at December 31, 2022 and 2021, respectively. The insurance subsidiary 
maintained net reserves for professional liability risks of $147 million and $154 million at December 31, 2022 and 2021, 
respectively. Our facilities are insured by our insurance subsidiary for losses up to $75 million per occurrence; however, 
this coverage is subject, in most cases, to a $15 million per occurrence self-insured retention. Net reserves for the self-
insured  professional  liability  risks  retained  were  $1.836  billion  and  $1.813  billion  at  December  31,  2022  and  2021, 
respectively. Claims payments, net of reinsurance recoveries, during the next 12 months are expected to approximate 
$503 million. We estimate that approximately $459 million of the expected net claim payments during the next 12 months 
will relate to claims subject to the self-insured retention. 

68
 

HCA HEALTHCARE, INC.
 

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
 
AND RESULTS OF OPERATIONS (Continued)
 

Liquidity and Capital Resources (continued) 

Financing Activities 

We are a highly leveraged company with significant debt service requirements. Our debt totaled $38.084 billion 
and $34.579 billion at December 31, 2022 and 2021, respectively. Our interest expense was $1.741 billion for 2022 and 
$1.566 billion for 2021. 

During 2022, we issued $6.000 billion aggregate principal amount of senior notes comprised of (i) $1.000 billion 
aggregate principal amount of 3 1/8% senior notes due 2027, (ii) $500 million aggregate principal amount of 3 3/8% 
senior notes due 2029, (iii) $2.000 billion aggregate principal amount of 3 5/8% senior notes due 2032, (iv) $500 million 
aggregate principal amount of 4 3/8% senior notes due 2042 and (v) $2.000 billion aggregate principal amount of 4 5/8% 
senior notes due 2052. We used a portion of the net proceeds to pay down our revolving credit facilities, and we redeemed 
all  $1.250  billion  outstanding  aggregate  principal  amount  of  our  4.75%  senior  notes  due  2023  and  all  $1.250  billion 
outstanding aggregate principal amount of our 5.875% senior notes due 2023. 

Management believes that cash flows from operations, amounts available under our senior secured credit facilities 
and our anticipated access to public and private debt markets will be sufficient to meet expected liquidity needs for the 
foreseeable future. 

HCA Inc., a direct wholly-owned subsidiary of HCA Healthcare, Inc., is the primary obligor under a substantial 
portion  of  our  indebtedness,  including  our  senior  secured  credit  facilities  and  senior  notes.  The  senior  secured  credit 
facilities are fully and unconditionally guaranteed on a senior secured basis by substantially all existing and future, direct 
and indirect, 100% owned material domestic subsidiaries that are “Unrestricted Subsidiaries” under our Indenture dated 
December 16, 1993 (except for certain special purpose subsidiaries that only guarantee and pledge their assets under our 
senior  secured  asset-based  revolving  credit  facility).  On  May  25,  2022,  Standard  &  Poor’s  Rating  Services  (“S&P”) 
announced it had issued an investment grade rating with respect to the issuer credit rating of HCA Healthcare, Inc. and 
its subsidiaries. S&P’s announcement, in conjunction with previously disclosed events, constituted an “Investment Grade 
Rating Event” or a “Ratings Event,” as applicable, under the terms of the indentures governing HCA Inc.’s outstanding 
senior secured notes and, as a result, the conditions in the senior secured indentures to permit the permanent release of 
the subsidiary guarantees and all collateral securing the senior secured notes were met. The subsidiary guarantees and 
collateral securing our senior secured credit facilities are not affected. Following this release of the subsidiary guarantees 
and  collateral  securing  the  senior  secured  notes,  the  subsidiary  guarantors  deregistered  with  the  SEC.  As  a  result, 
summarized financial information for HCA Healthcare, Inc., HCA Inc. and the subsidiary guarantors, and information 
about the subsidiary guarantees and affiliates whose securities were pledged as collateral will no longer be presented. 

All of the senior notes issued by HCA Inc. in 2014 or later continue to be fully and unconditionally guaranteed on 
an unsecured basis by HCA Healthcare, Inc. The combined assets, liabilities, and results of operations of HCA Healthcare, 
Inc. and HCA Inc. are not materially different than the corresponding amounts presented in the consolidated financial 
statements of HCA Healthcare, Inc. As a result, summarized financial information of HCA Healthcare, Inc. and HCA Inc. 
is not required to be presented under Rule 13-01 of Regulation S-X. 

Market Risk 

We are exposed to market risk related to changes in market values of securities. Our insurance subsidiaries held 
$473 million of investment securities at December 31, 2022. These investments are carried at fair value, with changes in 
unrealized gains and losses being recorded as adjustments to other comprehensive income. At December 31, 2022, we 
had unrealized losses of $38 million on the insurance subsidiaries’ investment securities. 

We  are  exposed  to  market  risk  related  to  market  illiquidity.  Investments  in  debt  and  equity  securities  of  our 
insurance subsidiaries could be impaired by the inability to access the capital markets. Should the insurance subsidiaries 
require significant amounts of cash in excess of normal cash requirements to pay claims and other expenses on short 
notice, we may have difficulty selling these investments in a timely manner or be forced to sell them at a price less than 
what we might otherwise have been able to in a normal market environment. We may be required to recognize credit-
related impairments on our investment securities in future periods should issuers default on interest payments or should 
the fair market valuations of the securities deteriorate due to ratings downgrades or other issue-specific factors. 

69
 

HCA HEALTHCARE, INC.
 

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
 
AND RESULTS OF OPERATIONS (Continued)
 

Market Risk (continued)
 

We are also exposed to market risk related to changes in interest rates. With respect to our interest-bearing liabilities, 
approximately $4.780 billion of long-term debt at December 31, 2022 was subject to variable rates of interest, while the 
remaining balance in long-term debt of $33.304 billion at December 31, 2022 was subject to fixed rates of interest. Both 
the general level of interest rates and, for the senior secured credit facilities, our leverage affect our variable interest rates. 
Our variable debt is comprised primarily of amounts outstanding under the senior secured credit facilities. The average 
effective interest rate for our long-term debt was 4.7% for 2022 and 4.9% for 2021. 

The estimated fair value of our total long-term debt was $35.555 billion at December 31, 2022. The estimates of 
fair  value  are  based  upon  the  quoted  market  prices  for  the  same  or  similar  issues  of  long-term  debt  with  the  same 
maturities.  Based  on  a  hypothetical  1%  increase  in  interest  rates,  the  potential  annualized  reduction  to  future  pretax 
earnings would be approximately $48 million. To mitigate the impact of fluctuations in interest rates, we generally target 
a majority of our debt portfolio to be maintained at fixed rates. 

We are exposed to currency translation risk related to our foreign operations. We currently do not consider the 
market risk related to foreign currency translation to be material to our consolidated financial statements or our liquidity. 

Tax Examinations 

The  Internal  Revenue  Service  (“IRS”)  was  conducting  an  examination  of  the  Company’s  2016,  2017  and  2018 
federal income tax returns and the 2019 return for one affiliated partnership at December 31, 2022. We are also subject 
to  examination  by  state  and  foreign  taxing  authorities.  Management  believes  HCA  Healthcare,  Inc.,  its  predecessors, 
subsidiaries  and  affiliates  properly  reported  taxable  income  and  paid  taxes  in  accordance  with  applicable  laws  and 
agreements established with the IRS, state and foreign taxing authorities, and final resolution of any disputes will not 
have a material, adverse effect on our results of operations or financial position. However, if payments due upon final 
resolution  of  any  issues  exceed  our  recorded  estimates,  such  resolutions  could  have  a  material,  adverse  effect  on  our 
results of operations or financial position. 

Item 7A. 

Quantitative and Qualitative Disclosures about Market Risk 

Information with respect to this Item is provided under the caption “Market Risk” under Item 7, “Management’s 

Discussion and Analysis of Financial Condition and Results of Operations.” 

70
 

Item 8. 

Financial Statements and Supplementary Data 

Information with respect to this Item is contained in our consolidated financial statements indicated in the Index to 

Consolidated Financial Statements on Page F-1 of this annual report on Form 10-K. 

Item 9. 

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 

None. 

Item 9A. 

Controls and Procedures 

1. Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures 

Under the supervision and with the participation of our management, including our principal executive officer and 
principal financial officer, we conducted an evaluation of our disclosure controls and procedures, as such term is defined 
under Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Based 
on this evaluation, our principal executive officer and our principal financial officer concluded that our disclosure controls 
and procedures were effective as of the end of the period covered by this annual report. 

2. Internal Control Over Financial Reporting 

(a) Management’s Report on Internal Control Over Financial Reporting 

Our management is responsible for establishing and maintaining effective internal control over financial reporting, 
as such term is defined in Exchange Act Rule 13a-15(f). Because of its inherent limitations, internal control over financial 
reporting may not prevent or detect misstatements. Therefore, even those systems determined to be effective, can provide 
only reasonable assurance with respect to financial statement preparation and presentation. 

Under the supervision and with the participation of our management, including our principal executive officer and 
principal financial officer, we conducted an assessment of the effectiveness of our internal control over financial reporting 
based  on  the  framework  in  Internal  Control  —  Integrated  Framework  issued  by  the  Committee  of  Sponsoring 
Organizations of the Treadway Commission (2013 framework). Based on our assessment under the framework in Internal 
Control  —  Integrated  Framework,  our  management  concluded  that  our  internal  control  over  financial  reporting  was 
effective as of December 31, 2022. 

Ernst  &  Young  LLP,  the  independent  registered  public  accounting  firm  that  audited  our  consolidated  financial 
statements  included  in  this  Form  10-K,  has  issued  a  report  on  our  internal  control  over  financial  reporting,  which  is 
included herein. 

71
 

(b) Attestation Report of the Independent Registered Public Accounting Firm
 

Report of Independent Registered Public Accounting Firm 

The Board of Directors and Stockholders 
HCA Healthcare, Inc. 
Opinion on Internal Control over Financial Reporting 
We have audited HCA Healthcare, Inc.’s internal control over financial reporting as of December 31, 2022, based on 
criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations 
of  the  Treadway  Commission  (2013  framework)  (the  COSO  criteria).  In  our  opinion,  HCA  Healthcare,  Inc.  (the 
Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2022, 
based on the COSO criteria. 

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United 
States) (PCAOB), the consolidated balance sheets of HCA Healthcare, Inc. as of December 31, 2022 and 2021, and the 
related consolidated statements of income, comprehensive income, stockholders’ equity (deficit), and cash flows for each 
of the three years in the period ended December 31, 2022, and the related notes and our report dated February 17, 2023 
expressed an unqualified opinion thereon. 
Basis for Opinion 
The Company’s management is responsible for maintaining effective internal control over financial reporting and for its 
assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s 
Report  on  Internal  Control  Over  Financial  Reporting.  Our  responsibility  is  to  express  an  opinion  on  the  Company’s 
internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB 
and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and 
the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. 
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform 
the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained 
in all material respects. 
Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material 
weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed 
risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit 
provides a reasonable basis for our opinion. 
Definition and Limitations of Internal Control Over Financial Reporting 
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the 
reliability  of  financial  reporting  and  the  preparation  of  financial  statements  for  external  purposes  in  accordance  with 
generally accepted accounting principles. A company’s internal control over financial reporting includes those policies 
and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the 
transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded 
as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, 
and that receipts and expenditures of the company are being made only in accordance with authorizations of management 
and  directors  of  the  company;  and  (3)  provide  reasonable  assurance  regarding  prevention  or  timely  detection  of 
unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial 
statements. 
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. 
Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become 
inadequate  because  of  changes  in  conditions,  or  that  the  degree  of  compliance  with  the  policies  or  procedures  may 
deteriorate. 

/s/ Ernst & Young LLP 

Nashville, Tennessee 
February 17, 2023 

72
 

(c) Changes in Internal Control Over Financial Reporting 

During  the  fourth  quarter  of  2022,  there  were  no  changes  in  our  internal  control  over  financial  reporting  that 

materially affected or are reasonably likely to materially affect our internal control over financial reporting. 

Item 9B. 
None. 

Item 9C. 
None. 

Other Information 

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 

73
 

PART III
 

Item 10. 

Directors, Executive Officers and Corporate Governance 

The information required by this Item regarding the identity and business experience of our directors and executive 
officers  is  set  forth  under  the  heading  “Nominees  for  Election”  and  “Election  of  Directors”  in  the  definitive  proxy 
materials of HCA to be filed in connection with our 2023 Annual Meeting of Stockholders with respect to our directors 
and is set forth in Item 1 of Part I of this annual report on Form 10-K with respect to our executive officers. The information 
required by this Item contained in such definitive proxy materials is incorporated herein by reference. 

Information on the beneficial ownership reporting for our directors and executive officers required by this Item is 
contained under the caption “Delinquent Section 16(a) Reports” in the definitive proxy materials to be filed in connection 
with our 2023 Annual Meeting of Stockholders and is incorporated herein by reference. 

Information on our Audit and Compliance Committee and Audit Committee Financial Experts required by this Item 
is contained under the caption “Corporate Governance” in the definitive proxy materials to be filed in connection with 
our 2023 Annual Meeting of Stockholders and is incorporated herein by reference. 

We  have  a  Code  of  Conduct  which  is  applicable  to  all  our  directors,  officers  and  employees  (the  “Code  of 
Conduct”). The  Code  of Conduct  is  available  on the Ethics  and Compliance and  Corporate Governance  pages  of our 
website  at www.hcahealthcare.com.  To  the  extent  required  pursuant  to  applicable  SEC  regulations,  we intend  to  post 
amendments to or waivers from our Code of Conduct (to the extent applicable to our chief executive officer, principal 
financial officer or principal accounting officer) at this location on our website or report the same on a Current Report on 
Form 8-K. Our Code of Conduct is available free of charge upon request to our Investor Relations Department, HCA 
Healthcare, Inc., One Park Plaza, Nashville, TN 37203. 

Item 11. 

Executive Compensation 

The  information  required  by  this  Item  is  set  forth  under  the  headings  “Executive  Compensation”  and 
“Compensation Committee Interlocks and Insider Participation” in the definitive proxy materials to be filed in connection 
with  our  2023  Annual  Meeting  of  Stockholders,  which  information  is  incorporated  herein  by  reference,  except  as  to 
information required pursuant to Item 402(v) of SEC Regulation S-K, relating to pay versus performance. 

Item 12. 

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 
Information  about  security  ownership  of  certain  beneficial  owners  required  by  this  Item  is  set  forth  under  the 
heading “Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters” in the 
definitive proxy materials to be filed in connection with our 2023 Annual Meeting of Stockholders, which information is 
incorporated herein by reference. 

74
 

This table provides certain information as of December 31, 2022 with respect to our equity compensation plans: 

EQUITY COMPENSATION PLAN INFORMATION 
(Share and share unit amounts in millions) 

(a)	 

(b) 

Number of securities 
to be issued 
upon exercise of 
outstanding options, 
warrants and rights 

Weighted-average 
exercise price of 
outstanding 
options, 
warrants and rights 

(c) 
Number of securities 
remaining 
available for future 
issuance 
under equity 
compensation 
plans (excluding securities 
reflected in column(a))

Equity compensation plans approved by 

security holders

................................................ 

Equity compensation plans not approved by 

security holders

................................................ 
.................................................................. 

Total

9.586(1) 

$126.38(1) 

— 
9.586 

— 
$126.38 

18.262(2) 

— 
18.262 

(1)	 

(2)	 

Includes 1.784 million restricted share units which vest solely based upon continued employment over a specific 
period of time and 1.715 million performance share units which vest based upon continued employment over a 
specific period of time and the achievement of predetermined financial targets over time. The performance share 
units  reported  reflect  the  number  of  performance  share  units  that  would  vest  upon  achievement  of  target 
performance; the number of performance share units that vest can vary from zero (for actual performance less than 
90% of target) to two times the units granted (for actual performance of 110% or more of target). The weighted 
average exercise price does not take these restricted share units and performance share units into account. 
Includes 13.826 million shares available for future grants under the 2020 Stock Incentive Plan for Key Employees 
of HCA Healthcare, Inc. and its Affiliates and 4.436 million shares of common stock reserved for future issuance 
under the HCA Holdings, Inc. Employee Stock Purchase Plan. 

* For additional information concerning our equity compensation plans, see the discussion in Note 2 — Share-Based 
Compensation in the notes to the consolidated financial statements. 

Item 13. 

Certain Relationships and Related Transactions, and Director Independence 

The  information  required  by  this  Item  is  set  forth  under  the  headings  “Certain  Relationships  and  Related  Party 
Transactions”  and  “Corporate  Governance”  in  the  definitive  proxy  materials  to  be  filed  in  connection  with  our  2023 
Annual Meeting of Stockholders, which information is incorporated herein by reference. 

Item 14. 

Principal Accountant Fees and Services 

The information required by this Item is set forth under the heading “Ratification of Appointment of Independent 
Registered Public Accounting Firm” in the definitive proxy materials to be filed in connection with our 2023 Annual 
Meeting of Stockholders, which information is incorporated herein by reference. 

75
 

 
 
 
PART IV
 

Item 15. 

Exhibits and Financial Statement Schedules 

(a) Documents filed as part of the report: 
1. Financial Statements. The accompanying Index to Consolidated Financial Statements on page F-1 of this annual 

report on Form 10-K is provided in response to this item. 

2. List of Financial Statement Schedules. All schedules are omitted because the required information is either not 

present, not present in material amounts or presented within the consolidated financial statements. 

3. List of Exhibits 

2.1	 

2.2	 

3.1	 

3.2	 

4.1 
4.2	 

4.3	 

4.4	 

—  Agreement and Plan of Merger, dated July 24, 2006, by and among HCA Inc., Hercules Holding II, 
LLC and Hercules Acquisition Corporation (filed as Exhibit 2.1 to the Company’s Current Report on 
Form 8-K filed July 25, 2006, and incorporated herein by reference). 

—  Merger Agreement, dated November 22, 2010, by and among HCA Inc., HCA Holdings, Inc., and HCA 
Merger Sub LLC (filed as Exhibit 2.1 to the Company’s Current Report on Form 8-K filed November 
24, 2010, and incorporated herein by reference). 

—  Amended and Restated Certificate of Incorporation of the Company (restated for SEC filing purposes 
only) (filed as Exhibit 3.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 
30, 2020, and incorporated herein by reference). 

—  Third Amended and Restated Bylaws of the Company (filed as Exhibit 3.1 to the Company’s Current 

Report on Form 8-K filed December 19, 2022, and incorporated herein by reference). 

—	  Description of Registered Securities. 
—  Specimen Certificate for shares of Common Stock, par value $0.01 per share, of the Company (filed as 
Exhibit 4.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2017, 
and incorporated herein by reference). 

—  Security Agreement, dated as of November 17, 2006, by and among HCA Inc., the subsidiary grantors 
party thereto and The Bank of New York, as collateral agent (filed as Exhibit 4.2 to the Company’s 
Current Report on Form 8-K filed November 24, 2006, and incorporated herein by reference). 

—  Pledge Agreement, dated as of November 17, 2006, by and among HCA Inc., the subsidiary pledgors 
party thereto and The Bank of New York, as collateral agent (filed as Exhibit 4.3 to the Company’s 
Current Report on Form 8-K filed November 24, 2006, and incorporated herein by reference). 

4.5(a)  —	  $13,550,000,000 — €1,000,000,000 Credit Agreement, dated as of November 17, 2006, by and among 
HCA Inc., HCA UK Capital Limited, the lending institutions from time to time parties thereto, Banc of 
America Securities LLC, J.P. Morgan Securities Inc., Citigroup Global Markets Inc. and Merrill Lynch, 
Pierce, Fenner & Smith Incorporated, as joint lead arrangers and joint bookrunners, Bank of America, 
N.A., as administrative agent, JPMorgan Chase Bank, N.A. and Citicorp North America, Inc., as co-
syndication agents and Merrill Lynch Capital Corporation, as documentation agent (filed as Exhibit 4.8 
to the Company’s Current Report on Form 8-K filed November 24, 2006, and incorporated herein by 
reference). 

4.5(b)  —	  Amendment No. 1 to the Credit Agreement, dated as of February 16, 2007, by and among HCA Inc., 
HCA UK Capital Limited, the lending institutions from time to time parties thereto, Bank of America, 
N.A., as administrative agent, JPMorgan Chase Bank, N.A., and Citicorp North America, Inc., as Co-
Syndication Agents, Banc of America Securities, LLC, J.P. Morgan Securities Inc., Citigroup Global 
Markets  Inc.  and  Merrill  Lynch,  Pierce,  Fenner  &  Smith  Incorporated,  as  joint  lead  arrangers  and 
bookrunners, Deutsche Bank Securities and Wachovia Capital Markets LLC, as joint bookrunners and 
Merrill Lynch Capital Corporation, as documentation agent (filed as Exhibit 4.7(b) to the Company’s 
Annual Report on Form 10-K for the fiscal year ended December 31, 2006, and incorporated herein by 
reference). 

76
 

4.5(c)  —	  Amendment No. 2 to the Credit Agreement, dated as of March 2, 2009, by and among HCA Inc., HCA 
UK Capital Limited, the lending institutions from time to time parties thereto, Bank of America, N.A., 
as  administrative  agent,  JPMorgan  Chase  Bank,  N.A.,  and  Citicorp  North  America,  Inc.,  as  Co-
Syndication Agents, Banc of America Securities, LLC, J.P. Morgan Securities Inc., Citigroup Global 
Markets  Inc.  and  Merrill  Lynch,  Pierce,  Fenner  &  Smith  Incorporated,  as  joint  lead  arrangers  and 
bookrunners, Deutsche Bank Securities and Wachovia Capital Markets LLC, as joint bookrunners and 
Merrill Lynch Capital Corporation, as documentation agent (filed as Exhibit 4.8(c) to the Company’s 
Annual Report on Form 10-K for the fiscal year ended December 31, 2008, and incorporated herein by 
reference). 

4.5(d)  —	  Amendment No. 3 to the Credit Agreement, dated as of June 18, 2009, by and among HCA Inc., HCA 
UK Capital Limited, the lending institutions from time to time parties thereto, Bank of America, N.A., 
as  administrative  agent,  JPMorgan  Chase  Bank,  N.A.,  and  Citicorp  North  America,  Inc.,  as  Co-
Syndication Agents, Banc of America Securities, LLC, J.P. Morgan Securities Inc., Citigroup Global 
Markets  Inc.  and  Merrill  Lynch,  Pierce,  Fenner  &  Smith  Incorporated,  as  joint  lead  arrangers  and 
bookrunners, Deutsche Bank Securities and Wachovia Capital Markets LLC, as joint bookrunners and 
Merrill  Lynch  Capital  Corporation,  as  documentation  agent  (filed  as  Exhibit  4.1  to  the  Company’s 
Current Report on Form 8-K filed June 22, 2009, and incorporated herein by reference). 
4.5(e)  —	  Extension Amendment No. 1 to the Credit Agreement, dated as of April 6, 2010, by and among HCA 
Inc.,  HCA  UK  Capital  Limited,  the  lending  institutions  from  time  to  time  parties  thereto,  Bank  of 
America, N.A., as administrative agent and collateral agent (filed as Exhibit 10.1 to the Company’s 
Current Report on Form 8-K filed April 8, 2010, and incorporated herein by reference). 
4.5(f)  —	  Amended and Restated Joinder Agreement No. 1, dated as of November 8, 2010, by and among each 
of the financial institutions listed as a “Replacement-1 Revolving Credit Lender” on Schedule A thereto, 
HCA  Inc.,  Bank  of  America,  N.A.,  as  Administrative  Agent  and  as  Collateral  Agent,  and  the  other 
parties listed on the signature pages thereto (filed as Exhibit 4.1 to the Company’s Quarterly Report on 
Form 10-Q for the quarter ended September 30, 2010, and incorporated herein by reference). 

4.5(g)  —	  Restatement Agreement, dated as of May 4, 2011, by and among HCA Inc., HCA UK Capital Limited, 
the lenders party thereto and Bank of America, N.A., as administrative agent and collateral agent to the 
Credit Agreement, dated as of November 17, 2006, as amended on February 16, 2007, March 2, 2009, 
June 18, 2009, April 6, 2010 and November 8, 2010 (filed as Exhibit 10.1 to the Company’s Current 
Report on Form 8-K filed May 9, 2011, and incorporated herein by reference). 

4.5(h)  —	  Extension Amendment No. 1, dated as of April 25, 2012, by and among HCA Inc., HCA UK Capital 
Limited, each of the U.S. Guarantors, each of the European Guarantors, the lenders party thereto and 
Bank of America, N.A., as administrative agent, swingline lender and letter of credit issuer (filed as 
Exhibit  10.1  to  the  Company’s  Current  Report  on  Form  8-K  filed  April  26,  2012, and  incorporated 
herein by reference). 

4.5(i)  —	  Restatement  Agreement,  dated  as  of  February  26,  2014,  to  (i)  the  Credit  Agreement,  dated  as  of 
November 17, 2006 and as amended and restated as of May 4, 2011, by and among the HCA Inc., HCA 
UK Capital Limited, the lenders party thereto and Bank of America, N.A., as administrative agent and 
collateral  agent  and  (ii)  the  U.S.  Guarantee,  dated  as  of  November  17,  2006,  by  and  among  the 
guarantors party thereto and Bank of America, N.A., as administrative agent (filed as Exhibit 4.1 to the 
Company’s Current Report on Form 8-K filed February 28, 2014, and incorporated herein by reference). 
4.5(j)  —	  Supplement No. 14, dated as of November 9, 2015, to the U.S. Guarantee, dated as of November 17, 
2006 and amended and restated on February 26, 2014, by and among the guarantors party thereto and 
Bank of America, N.A., as administrative agent (filed as Exhibit 4.4(j) to the Company’s Annual Report 
on Form 10-K for the fiscal year ended December 31, 2018, and incorporated herein by reference). 

4.5(k)  —	  Schedule of Omitted Supplements to the U.S. Guarantee, dated as of November 17, 2006 and  amended 

and restated on February 26, 2014, filed pursuant to Instruction 2 to Item 601 of Regulation  S-K. 

4.5(l)  —	  Restatement Agreement, dated as of June 28, 2017, to the Credit Agreement, dated as of November 17, 
2006, by and among HCA Inc., as borrower, the guarantors party thereto, Bank of America, N.A., as 

77
 

4.5(m)  —	 

4.5(n)  —	 

4.5(o)  —	 

administrative  agent  and  collateral  agent,  and  the  lenders  party  thereto  (filed  as  Exhibit  4.1  to  the 
Company’s Current Report on Form 8-K filed June 30, 2017, and incorporated herein by reference). 
Joinder  Agreement  No.  8,  dated  as  of  July  16,  2019,  by  and  among  HCA  Inc.,  as  borrower,  the 
guarantors party thereto, Bank of America, N.A., as administrative agent and collateral agent, and the 
lenders party thereto (filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K filed July 22, 
2019, and incorporated herein by reference). 
Joinder  Agreement  No.  9,  dated  as  of  October  8,  2019,  by  and  among  HCA  Inc.,  as  borrower,  the 
guarantors party thereto, Bank of America, N.A., as administrative agent and collateral agent, and the 
lenders party thereto (filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K filed October 
10, 2019, and incorporated herein by reference). 
Joinder Agreement No. 10, dated as of November 20, 2019, by and among HCA Inc., as borrower, the 
guarantors party thereto, Bank of America, N.A., as administrative agent and collateral agent, and the 
lenders  party  thereto  (filed  as  Exhibit  4.1  to  the  Company’s  Current  Report  on  Form  8-K  filed 
November 21, 2019, and incorporated herein by reference). 

4.5(p)  —	  Restatement Agreement, dated as of June 30, 2021, to the Credit Agreement, dated as of November 17, 
2006, by and among HCA Inc., as borrower, the guarantors party thereto, Bank of America, N.A., as 
administrative  agent  and  collateral  agent,  and  the  lenders  party  thereto  (filed  as  Exhibit  4.10  to  the 
Company’s Current Report on Form 8-K filed July 1, 2021, and incorporated herein by reference). 

4.5(q)  —	  Restatement  Agreement  dated  as  of  January  4,  2023,  by  and  among  HCA  Inc.,  as  borrower,  the 
guarantors party thereto, Bank of America, N.A., as administrative agent and collateral agent, and the 
lenders party thereto (filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K filed January 
4, 2023, and incorporated herein by reference). 

4.6(a)  —	  Security Agreement, dated as November 17, 2006, and amended and restated as of March 2, 2009, by 
and  among  the  Company,  the  Subsidiary  Grantors  named  therein  and  Bank  of  America,  N.A.,  as 
Collateral Agent (filed as Exhibit 4.10 to the Company’s Annual Report on Form 10-K for the fiscal 
year ended December 31, 2008, and incorporated herein by reference). 

4.6(b)  —	  Supplement No. 2, dated as of October 27, 2011, to the Amended and Restated Security Agreement, 
dated as of March 2, 2009, as supplemented, by and among the subsidiary grantor named therein and 
Bank of America, N.A., as collateral agent (filed as Exhibit 4.5(b) to the Company’s Annual Report on 
Form 10-K for the fiscal year ended December 31, 2018, and incorporated herein by reference). 

4.6(c)  —	  Schedule of Omitted Supplements to the Security Agreement, dated as of November 17, 2006 and 

amended and restated as of March 2, 2009, filed pursuant to Instruction 2 to Item 601 of Regulation 
S-K. 

4.7(a)  —	  Pledge Agreement, dated as of November 17, 2006, and amended and restated as of March 2, 2009, by 
and  among  the  Company,  the  Subsidiary  Pledgors  named  therein  and  Bank  of  America,  N.A.,  as 
Collateral Agent (filed as Exhibit 4.11 to the Company’s Annual Report on Form 10-K for the fiscal 
year ended December 31, 2008, and incorporated herein by reference). 

4.7(b)  —	  Supplement No. 1 dated as of October 27, 2011 to the Amended and Restated Pledge Agreement, dated 
as of March 2, 2009, by and among the subsidiary pledgors named therein and Bank of America, N.A., 
as collateral agent (filed as Exhibit 4.6(b) to the Company’s Annual Report on Form 10-K for the fiscal 
year ended December 31, 2018, and incorporated herein by reference). 

4.7(c)  —	  Schedule of Omitted Supplements to the Pledge Agreement, dated as of November 6, 2006 and 

amended and restated as of March 2, 2009, filed pursuant to Instruction 2 to Item 601 of Regulation 
S-K. 

4.8(a)  —	  $2,500,000,000  Credit  Agreement,  dated  as  of  September  30,  2011,  by  and  among  HCA  Inc.,  the 
subsidiary borrowers party thereto, the lenders from time to time party thereto and Bank of America, 
N.A., as administrative agent (filed as Exhibit 4.4 to the Company’s Current Report on Form 8-K filed 
October 3, 2011, and incorporated herein by reference). 

4.8(b)  —	  Restatement Agreement, dated as of March 7, 2014, to the Credit Agreement, dated as of September 
30, 2011, by and among HCA Inc., the subsidiary borrowers party thereto, the lenders party thereto and 

78
 

4.8(c)  —	 

Bank  of  America,  N.A.  as  administrative  agent  and  collateral  agent  (filed  as  Exhibit  4.1  to  the 
Company’s Current Report on Form 8-K filed March 11, 2014, and incorporated herein by reference). 
Joinder  Agreement  and  Amendment  No.  1,  dated  as  of  October  30,  2014,  to  the  Credit  Agreement, 
dated as of September 30, 2011 and amended and restated as of March 7, 2014, by and among HCA 
Inc., the subsidiary borrowers party thereto, the lenders party thereto and Bank of America, N.A. as 
administrative agent and collateral agent (filed as Exhibit 4.1 to the Company’s Current Report on Form 
8-K filed October 31, 2014, and incorporated herein by reference). 

4.8(e)  —	 

4.8(d)  —	  Restatement Agreement, dated as of June 28, 2017, to the Credit Agreement, dated as of September 30, 
2011, by and among HCA Inc., as borrower, the subsidiary borrowers party thereto, Bank of America, 
N.A., as administrative agent and collateral agent, and the lenders party thereto (filed as Exhibit 4.2 to 
the Company’s Current Report on Form 8-K filed June 30, 2017, and incorporated herein by reference). 
Joinder Agreement, dated as of January 3, 2018, to the Credit Agreement, dated as of September 30, 
2011 (as amended and restated on March 7, 2014, as further amended on October 30, 2014, and as 
further amended and restated on June 28, 2017), by and among the subsidiary borrowers party thereto 
and Bank of America, N.A., as administrative agent (filed as Exhibit 4.7(e) to the Company’s Annual 
Report  on  Form  10-K  for  the  fiscal  year  ended  December  31,  2018,  and  incorporated  herein  by 
reference). 

4.8(f)  —	  Restatement Agreement, dated as of June 30, 2021, to the Credit Agreement, dated as of September 30, 
2011, by and among HCA Inc., as parent borrower, the subsidiary borrowers party thereto, Bank of 
America,  N.A.,  as  administrative  agent  and  collateral  agent,  and  the  lenders  party  thereto  (filed  as 
Exhibit 4.11 to the Company’s Current Report on Form 8-K filed July 1, 2021, and incorporated herein 
by reference). 

4.8(g)  —	  Amendment No. 1 to Credit Agreement dated as of January 4, 2023, by and among HCA Inc., as parent 
borrower, the subsidiary borrowers party thereto, Bank of America, N.A., as administrative agent and 
collateral agent, and the lenders party thereto (filed as Exhibit 4.2 to the Company’s Current Report on 
Form 8-K filed January 4, 2023, and incorporated herein by reference). 

4.9(a)  —	  Security Agreement, dated as of September 30, 2011, by and among HCA Inc., the subsidiary borrowers 
party thereto and Bank of America, N.A., as collateral agent (filed as Exhibit 4.5 to the Company’s 
Current Report on Form 8-K filed October 3, 2011, and incorporated herein by reference). 

4.9(b)  —	  Supplement No. 1, dated as of October 27, 2011, to the Security Agreement dated as of September 30, 
2011, by and among the subsidiary borrower party thereto and Bank of America, N.A., as collateral 
agent (filed as Exhibit 4.8(b) to the Company’s Annual Report on Form 10-K for the fiscal year ended 
December 31, 2018, and incorporated herein by reference). 

4.9(c)  —	  Schedule of Omitted Supplements to the Security Agreement dated as of September 30, 2011, filed 

pursuant to Instruction 2 to Item 601 of Regulation S-K. 

4.10(a)  —	  General Intercreditor Agreement, dated as of November 17, 2006, by and between Bank of America, 
N.A., as First Lien Collateral Agent, and The Bank of New York, as Junior Lien Collateral Agent (filed 
as Exhibit 4.13(a) to the Company’s Registration Statement on Form S-4 (File No. 333-145054), and 
incorporated herein by reference). 

4.10(b)  —	  Receivables Intercreditor Agreement, dated as of November 17, 2006, by and among Bank of America, 
N.A., as ABL Collateral Agent, Bank of America, N.A., as CF Collateral Agent and The Bank of New 
York, as Bonds Collateral Agent (filed as Exhibit 4.13(b) to the Company’s Registration Statement on 
Form S-4 (File No. 333-145054), and incorporated herein by reference). 

4.10(c)  —	  First Lien Intercreditor Agreement, dated as of April 22, 2009, by and among Bank of America, N.A. 
as Collateral Agent, Bank of America, N.A. as Authorized Representative under the Credit Agreement 
and Law Debenture Trust Company of New York as the Initial Additional Authorized Representative 
(filed  as  Exhibit  4.5  to  the  Company’s  Current  Report  on  Form  8-K  filed  April  28,  2009,  and 
incorporated herein by reference). 

4.10(d)  —	  Additional  General  Intercreditor  Agreement,  dated  as  of  August  1,  2011,  by  and  among  Bank  of 
America, N.A., in its capacity as First Lien Collateral Agent, The Bank of New York Mellon, in its 
capacity as Junior Lien Collateral Agent and in its capacity as trustee for the Second Lien Notes issued 

79
 

on November 17, 2006, and The Bank of New York Mellon Trust Company, N.A., in its capacity as 
trustee for the Second Lien Notes issued on February 19, 2009 (filed as Exhibit 4.9 to the Company’s 
Current Report on Form 8-K filed August 1, 2011, and incorporated herein by reference). 

4.10(e)  —	  Additional Receivables Intercreditor Agreement, dated as of August 1, 2011, by and between Bank of 
America, N.A., as ABL Collateral Agent, and Bank of America, N.A., as New First Lien Collateral 
Agent (filed as Exhibit 4.10 to the Company’s Current Report on Form 8-K filed August 1, 2011, and 
incorporated herein by reference). 

4.10(f)  —	  Additional General Intercreditor Agreement, dated as of February 16, 2012, by and among Bank of 
America, N.A., in its capacity as First Lien Collateral Agent, The Bank of New York Mellon, in its 
capacity as Junior Lien Collateral Agent and in its capacity as trustee for the Second Lien Notes issued 
on November 17, 2006, and The Bank of New York Mellon Trust Company, N.A., in its capacity as 
trustee for the Second Lien Notes issued on February 19, 2009 (filed as Exhibit 4.9 to the Company’s 
Current Report on Form 8-K filed February 16, 2012, and incorporated herein by reference). 

4.10(g)  —	  Additional Receivables Intercreditor Agreement, dated as of February 16, 2012, by and between Bank 
of America, N.A., as ABL Collateral Agent, and Bank of America, N.A., as New First Lien Collateral 
Agent (filed as Exhibit 4.10 to the Company’s Current Report on Form 8-K filed February 16, 2012, 
and incorporated herein by reference). 

4.10(h)  —	  Additional  General  Intercreditor  Agreement,  dated  as  of  October  23,  2012,  by  and  among  Bank  of 
America, N.A., in its capacity as First Lien Collateral Agent, The Bank of New York Mellon, in its 
capacity as Junior Lien Collateral Agent and in its capacity as trustee for the Second Lien Notes issued 
on November 17, 2006, and The Bank of New York Mellon Trust Company, N.A., in its capacity as 
trustee for the Second Lien Notes issued on February 19, 2009 (filed as Exhibit 4.10 to the Company’s 
Current Report on Form 8-K filed October 23, 2012, and incorporated herein by reference). 

4.10(i)  —	  Additional Receivables Intercreditor Agreement, dated as of October 23, 2012, by and between Bank 
of America, N.A., as ABL Collateral Agent, and Bank of America, N.A., as New First Lien Collateral 
Agent (filed as Exhibit 4.11 to the Company’s Current Report on Form 8-K filed October 23, 2012, and 
incorporated herein by reference). 

4.11	 

4.12	 

4.13	 

—  Registration Rights Agreement, dated as of November 22, 2010, by and among HCA Holdings, Inc., 
Hercules  Holding  II,  LLC  and  certain  other  parties  thereto  (filed  as  Exhibit  4.4  to  the  Company’s 
Current Report on Form 8-K filed November 24, 2010, and incorporated herein by reference). 

—  Registration Rights Agreement, dated as of March 16, 1989, by and among HCA-Hospital Corporation 
of America and the persons listed on the signature pages thereto (filed as Exhibit 4.14 to the Company’s 
Registration Statement on Form S-4 (File No. 333-145054), and incorporated herein by reference). 
—  Assignment and Assumption Agreement, dated as of February 10, 1994, by and between HCA-Hospital 
Corporation  of  America  and  Columbia  Healthcare  Corporation  relating  to  the  Registration  Rights 
Agreement, as amended (filed as Exhibit 4.15 to the Company’s Registration Statement on Form S-4 
(File No. 333-145054), and incorporated herein by reference). 
Indenture, dated as of December 16, 1993, by and between the Company and The First National Bank 
of Chicago, as Trustee (filed as Exhibit 4.16(a) to the Company’s Registration Statement on Form S-4 
(File No. 333-145054), and incorporated herein by reference). 

4.14(a)  —	 

4.14(b)  —	  First Supplemental Indenture, dated as of May 25, 2000, by and between the Company and Bank One 
Trust Company, N.A., as Trustee (filed as Exhibit 4.16(b) to the Company’s Registration Statement on 
Form S-4 (File No. 333-145054), and incorporated herein by reference). 

4.14(c)  —	  Second Supplemental Indenture, dated as of July 1, 2001, by and between the Company and Bank One 
Trust Company, N.A., as Trustee (filed as Exhibit 4.16(c) to the Company’s Registration Statement on 
Form S-4 (File No. 333-145054), and incorporated herein by reference). 

4.14(d)  —	  Third Supplemental Indenture, dated as of December 5, 2001, by and between the Company and The 
Bank of New York, as Trustee (filed as Exhibit 4.16(d) to the Company’s Registration Statement on 
Form S-4 (File No. 333-145054), and incorporated herein by reference). 

80
 

4.14(e)  —	  Fourth Supplemental Indenture, dated as of November 14, 2006, by and between the Company and The 
Bank of New York, as Trustee (filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K filed 
November 16, 2006, and incorporated herein by reference). 

4.15	 

4.16	 

4.17	 

4.18	 

4.19	 

4.20	 

4.21	 

4.22	 

4.23	 

4.24	 

— 

4.25	 

— 

—  Form of 7.5% Debenture due 2023 (filed as Exhibit 4.17 to the Company’s Registration Statement on 

Form S-4 (File No. 333-145054), and incorporated herein by reference). 

—  Form of 8.36% Debenture due 2024 (filed as Exhibit 4.18 to the Company’s Registration Statement on 

Form S-4 (File No. 333-145054), and incorporated herein by reference). 

—  Form of Fixed Rate Global Medium-Term Note (filed as Exhibit 4.19 to the Company’s Registration 

Statement on Form S-4 (File No. 333-145054), and incorporated herein by reference). 

—  Form of Floating Rate Global Medium-Term Note (filed as Exhibit 4.20 to the Company’s Registration 

Statement on Form S-4 (File No. 333-145054), and incorporated herein by reference). 

—  Form of 7.69% Note due 2025 (filed as Exhibit 4.10 to the Company’s Annual Report on Form 10-K 

for the fiscal year ended December 31, 2004, and incorporated herein by reference). 

—  Form of 7.50% Debenture due 2095 (filed as Exhibit 4.23 to the Company’s Registration Statement on 

Form S-4 (File No. 333-145054), and incorporated herein by reference). 

—  Form of 7.05% Debenture due 2027 (filed as Exhibit 4.24 to the Company’s Registration Statement on 

Form S-4 (File No. 333-145054), and incorporated herein by reference). 

—  7.50% Note due 2033 in the principal amount of $250,000,000 (filed as Exhibit 4.2 to the Company’s 

Current Report on Form 8-K filed November 6, 2003, and incorporated herein by reference). 

—  Form of Indenture of HCA Inc. (filed as Exhibit 4.2 to the Registrant’s Registration Statement on Form 

S-3 (File No. 333-175791), and incorporated herein by reference). 
Indenture dated as of August 1, 2011, by and among HCA Inc., the guarantors named on Schedule I 
thereto, Delaware Trust Company (as successor to Law Debenture Trust Company of New York), as 
trustee,  and  Deutsche  Bank  Trust  Company  Americas,  as  paying  agent,  registrar  and  transfer  agent 
(filed as Exhibit 4.5 to the Company’s Registration Statement on Form S-3 (File No. 333-226709), and 
incorporated herein by reference). 
Indenture, dated as of December 6, 2012, by and among HCA Holdings, Inc., Law Debenture Trust 
Company of New York, as trustee, and Deutsche Bank Trust Company Americas, as registrar, paying 
agent  and  transfer  agent  (filed  as  Exhibit  4.1  to  the  Company’s  Current  Report  on  Form  8-K  filed 
December 6, 2012, and incorporated herein by reference). 

4.26	 

4.27 
4.28	 

4.29	 

4.30 
4.31	 

—  Supplemental Indenture No. 8, dated as of March 17, 2014, by and among HCA Inc., HCA Holdings, 
Inc., the subsidiary guarantors named therein, Law Debenture Trust Company of New York, as trustee, 
and Deutsche Bank Trust Company Americas, as paying agent, registrar and transfer agent (filed as 
Exhibit  4.3  to  the  Company’s  Current  Report  on Form  8-K  filed  March  21,  2014,  and  incorporated 
herein by reference). 

—	  Form of 5.00% Senior Secured Notes due 2024 (included in Exhibit 4.26). 
—  Additional Receivables Intercreditor Agreement, dated as of March 17, 2014, by and between Bank of 
America, N.A., as ABL Collateral Agent, and Bank of America, N.A., as New First Lien Collateral 
Agent (filed as Exhibit 4.9 to the Company’s Current Report on Form 8-K filed March 21, 2014, and 
incorporated herein by reference). 

—  Supplemental Indenture No. 10, dated as of October 17, 2014, by and among HCA Inc., HCA Holdings, 
Inc., the subsidiary guarantors named therein, Law Debenture Trust Company of New York, as trustee, 
and Deutsche Bank Trust Company Americas, as paying agent, registrar and transfer agent (filed as 
Exhibit 4.3 to the Company’s Current Report on Form 8-K filed October 17, 2014, and incorporated 
herein by reference). 

—	  Form of 5.25% Senior Secured Notes due 2025 (included in Exhibit 4.29). 
—  Additional Receivables Intercreditor Agreement, dated as of October 17, 2014, by and between Bank 
of America, N.A., as ABL Collateral Agent, and Bank of America, N.A., as New First Lien Collateral 

81
 

4.32	 

4.33 
4.34	 

4.35	 

4.36 
4.37	 

4.38	 

4.39 
4.40	 

4.41	 

4.42 
4.43	 

4.44	 

4.45	 

Agent (filed as Exhibit 4.9 to the Company’s Current Report on Form 8-K filed October 17, 2014, and 
incorporated herein by reference). 

—  Supplemental Indenture No. 11, dated as of January 16, 2015, by and among HCA Inc., HCA Holdings, 
Inc.,  Law  Debenture  Trust  Company  of  New  York,  as  trustee,  and  Deutsche  Bank  Trust  Company 
Americas, as paying agent, registrar and transfer agent (filed as Exhibit 4.2 to the Company’s Current 
Report on Form 8-K filed January 16, 2015, and incorporated herein by reference). 

—	  Form of 5.375% Senior Notes due 2025 (included in Exhibit 4.32). 
—  Supplemental Indenture No. 12, dated as of May 20, 2015, by and among HCA Inc., HCA Holdings, 
Inc.,  Law  Debenture  Trust  Company  of  New  York,  as  trustee,  and  Deutsche  Bank  Trust  Company 
Americas, as paying agent, registrar and transfer agent (filed as Exhibit 4.4 to the Company’s Current 
Report on Form 8-K filed May 20, 2015, and incorporated herein by reference). 

—  Supplemental  Indenture  No.  13,  dated  as  of  November  13,  2015,  by  and  among  HCA  Inc.,  HCA 
Holdings,  Inc.,  Law  Debenture  Trust  Company  of  New  York,  as  trustee,  and  Deutsche  Bank  Trust 
Company Americas, as paying agent, registrar and transfer agent (filed as Exhibit 4.2 to the Company’s 
Current Report on Form 8-K filed November 13, 2015, and incorporated herein by reference). 

—	  Form of 5.875% Senior Notes due 2026 (included in Exhibit 4.35). 
—  Supplemental  Indenture  No.  14,  dated  as  of  December  8,  2015,  by  and  among  HCA  Inc.,  HCA 
Holdings,  Inc.,  Law  Debenture  Trust  Company  of  New  York,  as  trustee,  and  Deutsche  Bank  Trust 
Company Americas, as paying agent, registrar and transfer agent (filed as Exhibit 4.4 to the Company’s 
Current Report on Form 8-K filed December 8, 2015, and incorporated herein by reference). 

—  Supplemental Indenture No. 15, dated as of March 15, 2016, by and among HCA Inc., HCA Holdings, 
Inc., the subsidiary guarantors named therein, Law Debenture Trust Company of New York, as trustee, 
and Deutsche Bank Trust Company Americas, as paying agent, registrar and transfer agent (filed as 
Exhibit  4.2  to  the  Company’s  Current  Report  on Form  8-K  filed  March  15,  2016,  and  incorporated 
herein by reference). 

—	  Form of 5.250% Senior Secured Notes due 2026 (included in Exhibit 4.38). 
—  Additional Receivables Intercreditor Agreement, dated as of March 15, 2016, by and between Bank of 
America, N.A., as ABL Collateral Agent, and Bank of America, N.A., as First Lien Collateral Agent 
(filed  as  Exhibit  4.7  to  the  Company’s  Current  Report  on  Form  8-K  filed  March  15,  2016,  and 
incorporated herein by reference). 

—  Supplemental Indenture No. 16, dated as of August 15, 2016, by and among HCA Inc., HCA Holdings, 
Inc., the subsidiary guarantors named therein, Law Debenture Trust Company of New York, as trustee, 
and Deutsche Bank Trust Company Americas, as paying agent, registrar and transfer agent (filed as 
Exhibit 4.3 to the Company’s Current Report on Form 8-K filed August 15, 2016, and incorporated 
herein by reference). 

—	  Form of 4.500% Senior Secured Notes due 2027 (included in Exhibit 4.41). 
—  Additional Receivables Intercreditor Agreement, dated as of August 15, 2016, by and between Bank of 
America, N.A., as ABL Collateral Agent, and Bank of America, N.A., as First Lien Collateral Agent 
(filed  as  Exhibit  4.8  to  the  Company’s  Current  Report  on  Form  8-K  filed  August  15,  2016,  and 
incorporated herein by reference). 

—  Supplemental  Indenture  No.  17,  dated  as  of  December  9,  2016,  by  and  among  HCA  Inc.,  HCA 
Holdings,  Inc.,  the  subsidiary  guarantors  named  therein,  Delaware  Trust  Company,  as  trustee,  and 
Deutsche Bank Trust Company Americas, as paying agent, registrar and transfer agent (filed as Exhibit 
4.1 to the Company’s Current Report on Form 8-K filed December 9, 2016, and incorporated herein by 
reference). 

—  Supplemental Indenture No. 18, dated as of June 22, 2017, by and among HCA Inc., HCA Healthcare, 
Inc., the subsidiary guarantors named therein, Delaware Trust Company, as trustee, and Deutsche Bank 
Trust  Company  Americas,  as  paying  agent,  registrar  and  transfer  agent  (filed  as  Exhibit  4.2  to  the 
Company’s Current Report on Form 8-K filed June 22, 2017, and incorporated herein by reference). 

82
 

4.46 
4.47	 

4.48	 

4.49 
4.50	 

4.51 
4.52	 

4.53	 

4.54 
4.55	 

4.56	 

4.57	 

4.58 
4.59 
4.60 
4.61	 

4.62	 

—	  Form of 5.500% Senior Secured Notes due 2047 (included in Exhibit 4.45). 
—  Additional Receivables Intercreditor Agreement, dated as of June 22, 2017, by and between Bank of 
America, N.A., as ABL Collateral Agent, and Bank of America, N.A., as First Lien Collateral Agent 
(filed  as  Exhibit  4.7  to  the  Company’s  Current  Report  on  Form  8-K  filed  June  22,  2017,  and 
incorporated herein by reference). 

—  Supplemental  Indenture  No.  19,  dated  as  of  August  23,  2018,  by  and  among  HCA  Inc.,  HCA 
Healthcare, Inc., Delaware Trust Company, as trustee, and Deutsche Bank Trust Company Americas, 
as paying agent, registrar and transfer agent (filed as Exhibit 4.2 to the Company’s Current Report on 
Form 8-K filed August 23, 2018, and incorporated herein by reference). 

—	  Form of 5.375% Senior Notes Due 2026 (included in Exhibit 4.48). 
—  Supplemental  Indenture  No.  20,  dated  as  of  August  23,  2018,  by  and  among  HCA  Inc.,  HCA 
Healthcare, Inc., Delaware Trust Company, as trustee, and Deutsche Bank Trust Company Americas, 
as paying agent, registrar and transfer agent (filed as Exhibit 4.3 to the Company’s Current Report on 
Form 8-K filed August 23, 2018, and incorporated herein by reference). 

—	  Form of 5.625% Senior Notes Due 2028 (included in Exhibit 4.50). 
—  Supplemental  Indenture  No.  21,  dated  as  of  January  22,  2019,  by  and  among  HCA  Inc.,  HCA 
Healthcare, Inc., Delaware Trust Company, as trustee, and Deutsche Bank Trust Company Americas, 
as paying agent, registrar and transfer agent (filed as Exhibit 4.4 to the Company’s Current Report on 
Form 8-K filed January 22, 2019, and incorporated herein by reference). 

—  Supplemental  Indenture  No.  22,  dated  as  of  January  30,  2019,  by  and  among  HCA  Inc.,  HCA 
Healthcare, Inc., Delaware Trust Company, as trustee, and Deutsche Bank Trust Company Americas, 
as paying agent, registrar and transfer agent (filed as Exhibit 4.2 to the Company’s Current Report on 
Form 8-K filed January 30, 2019, and incorporated herein by reference). 

—	  Form of 5.875% Senior Notes Due 2029 (included in Exhibit 4.53). 
—  Supplemental Indenture No. 23, dated as of June 12, 2019, by and among HCA Inc., HCA Healthcare, 
Inc., the subsidiary guarantors named therein, Delaware Trust Company, as trustee, and Deutsche Bank 
Trust  Company  Americas,  as  paying  agent,  registrar  and  transfer  agent  (filed  as  Exhibit  4.2  to  the 
Company’s Current Report on Form 8-K filed June 12, 2019, and incorporated herein by reference). 

—  Supplemental Indenture No. 24, dated as of June 12, 2019, by and among HCA Inc., HCA Healthcare, 
Inc., the subsidiary guarantors named therein, Delaware Trust Company, as trustee, and Deutsche Bank 
Trust  Company  Americas,  as  paying  agent,  registrar  and  transfer  agent  (filed  as  Exhibit  4.3  to  the 
Company’s Current Report on Form 8-K filed June 12, 2019, and incorporated herein by reference). 

—  Supplemental Indenture No. 25, dated as of June 12, 2019, by and among HCA Inc., HCA Healthcare, 
Inc., the subsidiary guarantors named therein, Delaware Trust Company, as trustee, and Deutsche Bank 
Trust  Company  Americas,  as  paying  agent,  registrar  and  transfer  agent  (filed  as  Exhibit  4.4  to  the 
Company’s Current Report on Form 8-K filed June 12, 2019, and incorporated herein by reference). 

—	  Form of 4 1/8% Senior Secured Notes due 2029 (included in Exhibit 4.55). 
—	  Form of 5 1/8% Senior Secured Notes due 2039 (included in Exhibit 4.56). 
—	  Form of 5 1/4% Senior Secured Notes due 2049 (included in Exhibit 4.57). 
—  Additional Receivables Intercreditor Agreement, dated as of June 12, 2019, by and between Bank of 
America, N.A., as ABL Collateral Agent, and Bank of America, N.A., as First Lien Collateral Agent 
(filed  as  Exhibit  4.11  to  the  Company’s  Current  Report  on  Form  8-K  filed  June  12,  2019,  and 
incorporated herein by reference). 

—  Supplemental  Indenture  No.  26,  dated  as  of  February  26,  2020,  by  and  among  HCA  Inc.,  HCA 
Healthcare, Inc., Delaware Trust Company, as trustee, and Deutsche Bank Trust Company Americas, 
as paying agent, registrar and transfer agent (filed as Exhibit 4.2 to the Company’s Current Report on 
Form 8-K filed February 26, 2020, and incorporated herein by reference). 

4.63 

—	  Form of 3.500% Senior Notes Due 2030 (included in Exhibit 4.62). 

83
 

4.64	 

4.65	 

4.66 
4.67 
4.68	 

4.69	 

4.70	 

4.71	 

4.72	 

4.73	 

4.74 
4.75 
4.76 
4.77 
4.78 
4.79	 

4.80	 

10.1	 

—  Supplemental Indenture No. 27, dated as of June 30, 2021, by and among HCA Inc., HCA Healthcare, 
Inc., the subsidiary guarantors named therein, Delaware Trust Company, as trustee, and Deutsche Bank 
Trust  Company  Americas,  as  paying  agent,  registrar  and  transfer  agent  (filed  as  Exhibit  4.2  to  the 
Company’s Current Report on Form 8-K filed July 1, 2021, and incorporated herein by reference). 
—  Supplemental Indenture No. 28, dated as of June 30, 2021, by and among HCA Inc., HCA Healthcare, 
Inc., the subsidiary guarantors named therein, Delaware Trust Company, as trustee, and Deutsche Bank 
Trust  Company  Americas,  as  paying  agent,  registrar  and  transfer  agent  (filed  as  Exhibit  4.3  to  the 
Company’s Current Report on Form 8-K filed July 1, 2021, and incorporated herein by reference). 

—	  Form of 2 3/8% Senior Secured Notes Due 2031 (included in Exhibit 4.64). 
—	  Form of 3 1/2% Senior Secured Notes Due 2051 (included in Exhibit 4.65). 
—  Additional Receivables Intercreditor Agreement, dated as of June 30, 2021, by and between Bank of 
America, N.A., as ABL Collateral Agent, and Bank of America, N.A., as First Lien Collateral Agent 
(filed as Exhibit 4.9 to the Company’s Current Report on Form 8-K filed July 1, 2021, and incorporated 
herein by reference). 

— 

— 

— 

—  Supplemental Indenture No. 29, dated as of March 9, 2022, among HCA Inc., HCA Healthcare, Inc., 
the subsidiary guarantors named therein, Delaware Trust Company, as trustee, and Deutsche Bank 
Trust Company Americas, as paying agent, registrar and transfer agent (filed as Exhibit 4.2 to the 
Company’s Current Report on Form 8-K filed March 10, 2022, and incorporated herein by reference). 
Supplemental Indenture No. 30, dated as of March 9, 2022, among HCA Inc., HCA Healthcare, Inc., 
the subsidiary guarantors named therein, Delaware Trust Company, as trustee, and Deutsche Bank 
Trust Company Americas, as paying agent, registrar and transfer agent (filed as Exhibit 4.3 to the 
Company’s Current Report on Form 8-K filed March 10, 2022, and incorporated herein by reference). 
Supplemental Indenture No. 31, dated as of March 9, 2022, among HCA Inc., HCA Healthcare, Inc., 
the subsidiary guarantors named therein, Delaware Trust Company, as trustee, and Deutsche Bank 
Trust Company Americas, as paying agent, registrar and transfer agent (filed as Exhibit 4.4 to the 
Company’s Current Report on Form 8-K filed March 10, 2022, and incorporated herein by reference). 
Supplemental Indenture No. 32, dated as of March 9, 2022, among HCA Inc., HCA Healthcare, Inc., 
the subsidiary guarantors named therein, Delaware Trust Company, as trustee, and Deutsche Bank 
Trust Company Americas, as paying agent, registrar and transfer agent (filed as Exhibit 4.5 to the 
Company’s Current Report on Form 8-K filed March 10, 2022, and incorporated herein by reference). 
Supplemental Indenture No. 33, dated as of March 9, 2022, among HCA Inc., HCA Healthcare, Inc., 
the subsidiary guarantors named therein, Delaware Trust Company, as trustee, and Deutsche Bank 
Trust Company Americas, as paying agent, registrar and transfer agent (filed as Exhibit 4.6 to the 
Company’s Current Report on Form 8-K filed March 10, 2022, and incorporated herein by reference). 
Form of 3 1/8% Senior Secured Notes due 2027 (included in Exhibit 4.69). 
Form of 3 3/8% Senior Secured Notes due 2029 (included in Exhibit 4.70). 
Form of 3 5/8% Senior Secured Notes due 2032 (included in Exhibit 4.71). 
Form of 4 3/8% Senior Secured Notes due 2042 (included in Exhibit 4.72). 
Form of 4 5/8% Senior Secured Notes due 2052 (included in Exhibit 4.73). 

—	 
—	 
—	 
—	 
—	 
—  Additional Receivables Intercreditor Agreement, dated as of March 9, 2022, by and between Bank of 
America, N.A., as ABL Collateral Agent, and Bank of America, N.A., as First Lien Collateral Agent 
(filed as Exhibit 4.15 to the Company’s Current Report on Form 8-K filed March 10, 2022, and 
incorporated herein by reference). 

— 

—  Registration Rights Agreement, dated as of March 9, 2022, among HCA Inc., HCA Healthcare, Inc., 

the subsidiary guarantors named therein and Citigroup Global Markets Inc., BofA Securities, Inc., J.P. 
Morgan Securities LLC and Morgan Stanley & Co. LLC as representatives of the other several initial 
purchasers named therein (filed as Exhibit 4.16 to the Company’s Current Report on Form 8-K filed 
March 10, 2022, and incorporated herein by reference). 

—  Form  of  Indemnity  Agreement  with  certain  officers  and  directors  (filed  as  Exhibit  10.3  to  the 
Company’s  Registration  Statement  on  Form  S-4  (File  No.  333-145054)  and  incorporated  herein  by 
reference). 

84
 

10.2(a)  —	  2006 Stock Incentive Plan for Key Employees of HCA Holdings, Inc. and its Affiliates as Amended 
and Restated (filed as Exhibit 10.11(b) to the Company’s Registration Statement on Form S-1 (File No. 
333-171369), and incorporated herein by reference).* 

10.2(b)  —	  First  Amendment  to  2006  Stock  Incentive  Plan  for  Key  Employees  of  HCA  Holdings,  Inc.  and  its 
Affiliates, as Amended and Restated (filed as Exhibit 10.1 to the Company’s Quarterly Report on Form 
10-Q for the quarter ended June 30, 2011, and incorporated herein by reference).* 

10.2(c)  —	  Second Amendment to the 2006 Stock Incentive Plan for Key Employees of HCA Holdings, Inc. and 
its Affiliates, as Amended and Restated (filed as Exhibit 10.1 to the Company’s Quarterly Report on 
Form 10-Q for the quarter ended March 31, 2013, and incorporated herein by reference).* 

10.3(a)  —	  Management  Stockholder’s  Agreement,  dated  November  17,  2006  (filed  as  Exhibit  10.12  to  the 
Company’s  Annual  Report  on  Form  10-K  for  the  fiscal  year  ended  December  31,  2006,  and 
incorporated herein by reference). 

10.3(b)  —	  Form of Omnibus Amendment to HCA Holdings, Inc.’s Management Stockholder’s Agreements (filed 
as Exhibit 10.39 to the Company’s Registration Statement on Form S-1 (File No. 333-171369), and 
incorporated herein by reference). 

10.4	 

10.5	 

10.6	 

—  Form of Stock Appreciation Right Award Agreement Under the 2006 Stock Incentive Plan for Key 
Employees of HCA Holdings, Inc. and its Affiliates, as Amended and Restated (filed as Exhibit 10.1 to 
the  Company’s  Current  Report  on  Form  8-K  filed  February  14,  2012,  and  incorporated  herein  by 
reference).* 

—  Form of 2014 Stock Appreciation Right Award Agreement Under the 2006 Stock Incentive Plan for 
Key Employees of HCA Holdings, Inc. and its Affiliates, as Amended and Restated (filed as Exhibit 
10.17(b) to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013, 
and incorporated herein by reference).* 

—  Retirement Agreement, dated as of January 1, 2002, by and between the Company and Thomas F. Frist, 
Jr., M.D. (filed as Exhibit 10.30 to the Company’s Annual Report on Form 10-K for the fiscal year 
ended December 31, 2001, and incorporated herein by reference).* 

10.7(a)  —	  Amended and Restated HCA Supplemental Executive Retirement Plan, effective December 22, 2010, 
except as provided therein (filed as Exhibit 10.26 to the Company’s Annual Report on Form 10-K for 
the fiscal year ended December 31, 2010, and incorporated herein by reference).* 

10.7(b)  —	  Amendment,  dated  December  22,  2020,  to  Amended  and  Restated  HCA  Supplemental  Executive 
Retirement Plan (filed as Exhibit 10.7(b) to the Company’s Annual Report on Form 10-K for the fiscal 
year ended December 31, 2020, and incorporated herein by reference).* 

10.8(a)  —	  Amended and Restated HCA Restoration Plan, effective December 22, 2010 (filed as Exhibit 10.27 to 
the  Company’s  Annual  Report  on  Form  10-K  for  the  fiscal  year  ended  December  31,  2010,  and 
incorporated herein by reference).* 

10.8(b)  —	  Amendment  to  the  Amended  and  Restated  HCA  Restoration  Plan,  effective  June  5,  2020  (filed  as 
Exhibit 10.5 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2020, 
and incorporated herein by reference).* 

10.9(a)  —	  Employment Agreement dated November 16, 2006 (Samuel N. Hazen) (filed as Exhibit 10.27(d) to the 
Company’s  Annual  Report  on  Form  10-K  for  the  fiscal  year  ended  December  31,  2006,  and 
incorporated herein by reference).* 

10.9(b)  —	  Employment Agreement dated November 16, 2006 (Charles J. Hall) (filed as Exhibit 10.28(d) to the 
Company’s  Annual  Report  on  Form  10-K  for  the  fiscal  year  ended  December  31,  2012,  and 
incorporated herein by reference).* 

10.9(c)  —	  Amendment to Employment Agreement effective February 9, 2011 (Samuel N. Hazen) (filed as Exhibit 
10.29(j) to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2010, 
and incorporated herein by reference).* 

85
 

10.9(d)  —	  Second Amendment to Employment Agreement effective January 29, 2015 (Samuel N. Hazen) (filed 
as Exhibit 10.23(i) to the Company’s Annual Report on Form 10-K for the fiscal year ended December 
31, 2014 (File No. 001-11239), and incorporated herein by reference).* 

10.9(e)  —	  Third Amendment to Employment Agreement effective January 27, 2016 (Samuel N. Hazen) (filed as 
Exhibit 10.23(j) to the Company’s Annual Report on Form 10-K for the fiscal year ended December 
31, 2015, and incorporated herein by reference).* 

10.9(f)  —	  Amendment to Employment Agreement effective January 27, 2016 (Charles J. Hall) (filed as Exhibit 
10.23(k) to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015, 
and incorporated herein by reference).* 

10.9(g)  —	  Fourth Amendment to Employment Agreement effective November 14, 2016 (Samuel N. Hazen) (filed 
as Exhibit 10.16(l) to the Company’s Annual Report on Form 10-K for the fiscal year ended December 
31, 2016, and incorporated herein by reference).* 

10.9(h)  —	  Fifth Amendment to Employment Agreement effective January 1, 2019 (Samuel N. Hazen) (filed as 
Exhibit 10.14(i) to the Company’s Annual Report on Form 10-K for the fiscal year ended December 
31, 2018, and incorporated herein by reference).* 

10.9(i)  —	  Signing Bonus Agreement, dated as of January 24, 2022, by and between HCA Healthcare, Inc. and 

10.10	  — 

Michael R. McAlevey.* 
Indemnification Priority and Information Sharing Agreement, dated as of November 1, 2009, by and 
between HCA Inc. and certain other parties thereto (filed as Exhibit 10.35 to the Company’s Annual 
Report  on  Form  10-K  for  the  fiscal  year  ended  December  31,  2009,  and  incorporated  herein  by 
reference). 

10.11	  —  Assignment and Assumption Agreement, dated November 22, 2010, by and among HCA Inc., HCA 
Holdings, Inc. and HCA Merger Sub LLC (filed as Exhibit 10.1 to the Company’s Current Report on 
Form 8-K filed November 24, 2010, and incorporated herein by reference). 

10.12	  —  Omnibus  Amendment  to  Various  Stock  and  Option  Plans  and  the  Management  Stockholders’ 
Agreement, dated November 22, 2010 (filed as Exhibit 10.2 to the Company’s Current Report on Form 
8-K filed November 24, 2010, and incorporated herein by reference).* 

10.13	  —  Omnibus Amendment to Stock Option Agreements Issued Under the 2006 Stock Incentive Plan for Key 
Employees of HCA Holdings, Inc. and its Affiliates, as amended, effective February 16, 2011 (filed as 
Exhibit 10.38 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 
2010, and incorporated herein by reference).* 

10.14	  —  Stockholders’ Agreement, dated as of March 9, 2011, by and among the Company, Hercules Holding 
II, LLC and the other signatories thereto (filed as Exhibit 10.1 to the Company’s Current Report on 
Form 8-K filed March 16, 2011, and incorporated herein by reference). 

10.15	  —  Amendment, dated as of September 21, 2011, to the Stockholders’ Agreement, dated as of March 9, 
2011 (filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K filed September 21, 2011, 
and incorporated herein by reference). 

10.16	  —  Form  of  Director  Restricted  Share  Unit  Agreement  Under  the  2006  Stock  Incentive  Plan  for  Key 
Employees of HCA Holdings, Inc. and its Affiliates, as Amended and Restated (filed as Exhibit 10.5 to 
the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2011, and incorporated 
herein by reference).* 

10.17	  —  Executive Severance Policy (filed as Exhibit 10.46 to the Company’s Annual Report on Form 10-K for 

the fiscal year ended December 31, 2013, and incorporated herein by reference).* 

10.18	  —  HCA Holdings, Inc. Employee Stock Purchase Plan (filed as Exhibit 10.1 to the Company’s Current 
Report on Form 8-K filed April 25, 2014 (File No. 001-11239), and incorporated herein by reference).* 
10.19	  —  Form of 2015 Stock Appreciation Right Award Agreement Under the 2006 Stock Incentive Plan for 
Key Employees of HCA Holdings, Inc. and its Affiliates, as Amended and Restated (filed as Exhibit 
10.1 to the Company’s Current Report on Form 8-K filed February 4, 2015, and incorporated herein by 
reference).* 

86
 

10.20	  —  Form of 2016 Stock Appreciation Right Award Agreement Under the 2006 Stock Incentive Plan for 
Key Employees of HCA Holdings, Inc. and its Affiliates, as Amended and Restated (filed as Exhibit 
10.50 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015, 
and incorporated herein by reference).* 

10.21	  —  Form of Director Restricted Share Unit Agreement (Annual Award) Under the 2006 Stock Incentive 
Plan for Key Employees of HCA Holdings, Inc. and its Affiliates, as Amended and Restated (filed as 
Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2016, 
and incorporated herein by reference).* 

10.22	  —  Form of 2017 Stock Appreciation Right Award Agreement Under the 2006 Stock Incentive Plan for 
Key Employees of HCA Holdings, Inc. and its Affiliates, as Amended and Restated (filed as Exhibit 
10.42 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016, 
and incorporated herein by reference).* 

10.23	  —  Form of 2018 Stock Appreciation Right Award Agreement Under the 2006 Stock Incentive Plan for 
Key Employees of HCA Holdings, Inc. and its Affiliates, as Amended and Restated (filed as Exhibit 
10.40 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017, 
and incorporated herein by reference).* 

10.24	  —  Form of 2019 Stock Appreciation Right Award Agreement Under the 2006 Stock Incentive Plan for 
Key Employees of HCA Holdings, Inc. and its Affiliates, as Amended and Restated (filed as Exhibit 
10.41 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018, 
and incorporated herein by reference).* 

10.25	  —  Form of 2019 Performance Share Unit Award Agreement Under the 2006 Stock Incentive Plan for Key 
Employees of HCA Holdings, Inc. and its Affiliates, as Amended and Restated (filed as Exhibit 10.42 
to  the  Company’s  Annual  Report  on  Form  10-K  for  the  fiscal  year  ended  December  31,  2018,  and 
incorporated herein by reference).* 

10.26	  —  Form of 2020 Stock Appreciation Right Award Agreement Under the 2006 Stock Incentive Plan for 
Key Employees of HCA Holdings, Inc. and its Affiliates, as Amended and Restated (filed as Exhibit 
10.32 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019, 
and incorporated herein by reference).* 

10.27	  —  Form of 2020 Performance Share Unit Award Agreement Under the 2006 Stock Incentive Plan for Key 
Employees of HCA Holdings, Inc. and its Affiliates, as Amended and Restated (filed as Exhibit 10.33 
to  the  Company’s  Annual  Report  on  Form  10-K  for  the  fiscal  year  ended  December  31,  2019,  and 
incorporated herein by reference).* 

10.28	  —  2020  Stock  Incentive  Plan  for  Key  Employees  of  HCA  Healthcare,  Inc.,  and  its  Affiliates  (filed  as 
Exhibit  4.4  to  the  Company’s  Registration  Statement  on  Form  S-8,  and  incorporated  herein  by 
reference).* 

10.29	  —  Form of Stock Appreciation Right Award Agreement Under the 2020 Stock Incentive Plan for Key 
Employees  of  HCA  Healthcare,  Inc.  and  its  Affiliates  (filed  as  Exhibit  4.5  to  the  Company’s 
Registration Statement on Form S-8 (File No. 333-237967), and incorporated herein by reference).* 

10.30	  —  Form of Employee Restricted Share Unit Award Agreement Under the 2020 Stock Incentive Plan for 
Key  Employees  of  HCA  Healthcare,  Inc.  and  its  Affiliates  (filed  as  Exhibit  4.6  to  the  Company’s 
Registration Statement on Form S-8 (File No. 333-237967), and incorporated herein by reference).* 

10.31	  —  Form  of  Performance  Share  Unit  Award  Agreement  Under  the  2020  Stock  Incentive  Plan  for  Key 
Employees  of  HCA  Healthcare,  Inc.  and  its  Affiliates  (filed  as  Exhibit  4.7  to  the  Company’s 
Registration Statement on Form S-8 (File No. 333-237967), and incorporated herein by reference).* 

10.32	  —  HCA Healthcare, Inc. 2020 Senior Officer Performance Excellence Program (filed as Exhibit 10.1 to 
the Company’s Current Report on Form 8-K filed April 2, 2020, and incorporated herein by reference).* 
10.33	  —  Form  of  Director  Restricted  Share  Unit  Agreement  Under  the  2020  Stock  Incentive  Plan  for  Key 
Employees of HCA Healthcare, Inc. and its Affiliates (filed as Exhibit 10.2 to the Company Quarterly 
Report on Form 10-Q for the quarter ended March 31, 2020, and incorporated herein by reference).* 

87
 

10.34  —  Form of 2021 Stock Appreciation Right Award Agreement Under the 2020 Stock Incentive Plan for
 
Key Employees of HCA Healthcare, Inc. and its Affiliates (filed as Exhibit 10.37 to the Company’s 
Annual Report on Form 10-K for the fiscal year ended December 31, 2020, and incorporated herein by 
reference).* 

10.35	  —  Form of 2021 Performance Share Unit Award Agreement Under the 2020 Stock Incentive Plan for Key 
Employees of HCA Healthcare, Inc. and its Affiliates (filed as Exhibit 10.38 to the Company’s Annual 
Report  on  Form  10-K  for  the  fiscal  year  ended  December  31,  2020,  and  incorporated  herein  by 
reference).* 

10.36	  —  HCA Healthcare, Inc. 2021 Senior Officer Performance Excellence Program (filed as Exhibit 10.1 to 
the Company’s Current Report on Form 8-K filed April 9, 2021, and incorporated herein by reference).* 
10.37	  —  Form of 2022 Stock Appreciation Right Award Agreement Under the 2020 Stock Incentive Plan for 
Key Employees of HCA Healthcare, Inc. and its Affiliates (filed as Exhibit 10.38 to the Company’s 
Annual Report on Form 10-K for the fiscal year ended December 31, 2021, and incorporated herein by 
reference).* 

10.38	  —  Form of 2022 Performance Share Unit Award Agreement Under the 2020 Stock Incentive Plan for Key 
Employees of HCA Healthcare, Inc. and its Affiliates (filed as Exhibit 10.39 to the Company’s Annual 
Report  on  Form  10-K  for  the  fiscal  year  ended  December  31,  2021,  and  incorporated  herein  by 
reference).* 

10.39	  —  HCA Healthcare, Inc. 2022 Senior Officer Performance Excellence Program (filed as Exhibit 10.1 to 
the  Company’s  Current  Report  on  Form  8-K  filed  on  April  11,  2022,  and  incorporated  herein  by 
reference).* 

10.40	  —  Form of 2023 Stock Appreciation Right Award Agreement Under the 2020 Stock Incentive Plan for 

Key Employees of HCA Healthcare, Inc. and its Affiliates.* 

10.41  —	  Form of 2023 Performance Share Unit Award Agreement Under the 2020 Stock Incentive Plan for 

Key Employees of HCA Healthcare, Inc. and its Affiliates.*
 

21 
22 
23 
31.1 
31.2 
32 

101 

104 

—  List of Subsidiaries.
 
—	  List of Subsidiary Guarantors and Pledged Securities. 
—	  Consent of Ernst & Young LLP. 
—	  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 the Sarbanes-

Oxley Act of 2002. 

—	  The following financial information from our annual report on Form 10-K for the year ended December 
31,  2022,  filed  with  the  SEC  on  February  17,  2023,  formatted  in  Extensible  Business  Reporting 
Language  (XBRL):  (i)  the  consolidated  balance  sheets  at  December  31,  2022  and  2021,  (ii)  the 
consolidated  income  statements  for  the  years  ended  December  31,  2021,  2020  and  2019,  (iii)  the 
consolidated comprehensive income statements for the years ended December 31, 2022, 2021 and 2020, 
(iv) the consolidated statements of stockholders’ equity (deficit) for the years ended December 31, 2022, 
2021 and 2020, (v) the consolidated statements of cash flows for the years ended December 31, 2022, 
2021 and 2020, and (vi) the notes to consolidated financial statements. 

—	  The cover page from the Company’s Annual Report on Form 10-K for the year ended December 31, 

2022, formatted in Inline XBRL (included in Exhibit 101). 

__________ 
*  Management compensatory plan or arrangement. 

Item 16. 

Form 10-K Summary 

None. 

88
 

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly 

caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. 

SIGNATURES
 

HCA HEALTHCARE, INC. 

By: 

/S/  SAMUEL N. HAZEN 
Samuel N. Hazen 
Chief Executive Officer 

Dated: February 17, 2023 

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the 

following persons on behalf of the Registrant and in the capacities and on the dates indicated. 

Signature 
/S/  SAMUEL N. HAZEN 
Samuel N. Hazen 
/S/  WILLIAM B. RUTHERFORD 
William B. Rutherford 

/S/  THOMAS F. FRIST III 
Thomas F. Frist III 
/S/  MEG G. CROFTON 
Meg G. Crofton 
/S/  ROBERT J. DENNIS 
Robert J. Dennis 
/S/  NANCY-ANN DEPARLE 
Nancy-Ann DeParle 
/S/  WILLIAM R. FRIST 
William R. Frist 
/S/  CHARLES O. HOLLIDAY, JR. 
Charles O. Holliday, Jr. 
/S/  HUGH F. JOHNSTON 
Hugh F. Johnston 
/S/  MICHAEL W. MICHELSON 
Michael W. Michelson 
/S/  WAYNE J. RILEY 
Wayne J. Riley 
/S/  ANDREA B. SMITH 
Andrea B. Smith 

Date 
February 17, 2023 

February 17, 2023 

February 17, 2023 

February 17, 2023 

February 17, 2023 

February 17, 2023 

February 17, 2023 

February 17, 2023 

February 17, 2023 

February 17, 2023 

February 17, 2023 

February 17, 2023 

Title 
Chief Executive Officer and Director 
(Principal Executive Officer) 
Executive Vice President and 
Chief Financial Officer 
(Principal Financial Officer and 
Principal Accounting Officer) 
Chairman and Director 

Director 

Director 

Director 

Director 

Director 

Director 

Director 

Director 

Director 

89
 

HCA HEALTHCARE, INC. 

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS 

Report of Independent Registered Public Accounting Firm .................................................................................... 
Consolidated Financial Statements:
 

Consolidated Income Statements for the years ended December 31, 2022, 2021 and 2020........................... 
Consolidated Comprehensive Income Statements for the years ended December 31, 2022, 2021 and 2020 
Consolidated Balance Sheets, December  31, 2022 and 2021 ........................................................................ 
Consolidated Statements of Stockholders’ Equity (Deficit) for the years ended December 31, 2022, 2021
 
and 2020 .......................................................................................................................................................... 
Consolidated Statements of Cash Flows for the years ended December 31, 2022, 2021 and 2020 ............... 
Notes to Consolidated Financial Statements ................................................................................................... 

Page 
F-2
 

F-5
 
F-6
 
F-7
 

F-8
 
F-9
 
F-10
 

F-1
 

Report of Independent Registered Public Accounting Firm
 

The Board of Directors and Stockholders 
HCA Healthcare, Inc. 

Opinion on the Financial Statements 
We have audited the accompanying consolidated balance sheets of HCA Healthcare, Inc. (the Company) as of December 
31, 2022 and 2021, the related consolidated statements of income, comprehensive income, stockholders’ equity (deficit) 
and cash flows for each of the three years in the period ended December 31, 2022, and the related notes (collectively 
referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, 
in  all material  respects,  the  financial  position  of the  Company  at  December  31, 2022 and  2021, and  the  results  of its 
operations and its cash flows for each of the three years in the period ended December 31, 2022, in conformity with U.S. 
generally accepted accounting principles. 

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United 
States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2022, based on criteria 
established  in  Internal  Control-Integrated  Framework  issued  by  the  Committee  of  Sponsoring  Organizations  of  the 
Treadway  Commission  (2013  framework),  and  our  report  dated  February  17,  2023  expressed  an  unqualified  opinion 
thereon. 

Basis for Opinion 
These  financial  statements  are  the  responsibility  of  the  Company's  management.  Our  responsibility  is  to  express  an 
opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the 
PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities 
laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. 

We  conducted  our  audits  in  accordance  with  the  standards  of  the  PCAOB.  Those  standards  require  that  we  plan  and 
perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, 
whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of 
the  financial  statements,  whether  due  to  error  or  fraud,  and  performing  procedures  that  respond  to  those  risks.  Such 
procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. 
Our audits also included evaluating the accounting principles used and significant estimates made by management, as 
well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable 
basis for our opinion. 

Critical Audit Matters 
The critical audit matters communicated below are matters arising from the current period audit of the financial statements 
that  were  communicated  or  required  to  be  communicated  to  the  audit  committee  and  that:  (1)  relate  to  accounts  or 
disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex 
judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial 
statements,  taken  as  a  whole,  and  we  are  not,  by  communicating  the  critical  audit  matters  below,  providing  separate 
opinions on the critical audit matters or on the accounts or disclosures to which they relate. 

F-2
 

Revenue Recognition 

Description of the Matter
  For the year ended December 31, 2022, the Company’s revenues were $60.233 billion. As 
discussed in  Note  1 to  the  consolidated  financial  statements,  revenues  are  based  upon  the 
estimated amounts the Company expects to be entitled to receive from patients and third-
party  payers.  Estimates  of  contractual  allowances  under  managed  care  and  commercial 
insurance  plans  are  based  upon  the  payment  terms  specified  in  the  related  contractual 
agreements. Management continually reviews the contractual allowances estimation process 
to  consider  and  incorporate  updates  to  laws  and  regulations  and  the  frequent  changes  in 
managed  care  contractual  terms  resulting  from  contract  renegotiations  and  renewals. 
Revenues related to uninsured patients and uninsured copayment and deductible amounts for 
patients who have health care coverage may have discounts applied (uninsured discounts and 
contractual  discounts).  The  Company  also  records  estimated  implicit  price  concessions 
(based primarily on historical collection experience) related to uninsured accounts to record 
these revenues  and  accounts  receivable  at  the estimated  amounts  the Company  expects  to 
collect.  The primary collection risks relate to uninsured patient accounts, including amounts 
owed from patients after insurance has paid the amounts covered by the applicable agreement. 
Implicit  price  concessions  relate  primarily  to  amounts  due  directly  from  patients  and  are 
based upon management’s assessment of historical write-offs and expected net collections, 
business and economic conditions, trends in federal, state and private employer health care 
coverage and other collection indicators. 

How We Addressed the 
Matter in Our Audit 

Auditing management’s estimates of contractual allowances and implicit price concessions 
was complex and judgmental due to the significant data inputs and subjective assumptions 
utilized in determining related amounts. 

We  tested  internal  controls  that  address  the  risks  of  material  misstatement  related  to  the 
measurement and valuation of revenues, including estimation of contractual allowances and 
implicit price concessions. For example, we tested management’s internal controls over the 
key data inputs to the contractual allowance and implicit price concession models, significant 
assumptions  underlying  management’s  models,  and  management’s  internal  controls  over 
retrospective reviews of historical reserve accuracy. 

To test the estimated contractual allowances and implicit price concessions, we performed 
audit procedures that included, among others, assessing methodologies and evaluating the 
significant assumptions discussed above and testing the completeness and accuracy of the 
underlying  data  used  by  the  Company  in  its  estimates.  We  compared  the  significant 
assumptions used by management to current industry and economic trends and considered 
changes, if any, to the Company’s business and other relevant factors. We also assessed the 
historical  accuracy  of  management’s  estimates  as  a  source  of  potential  corroborative  or 
contrary evidence. 

Professional Liability Claims 

Description of the Matter  At December 31, 2022, the Company’s reserves for professional liability risks were $2.043 
billion and the Company’s related provision for losses for the year ended December 31, 2022 
was $517 million. As discussed in Note 1 to the consolidated financial statements, reserves 
for professional liability risks represent the estimated ultimate net cost of all reported and 
unreported  losses  incurred  and  unpaid  through  the  consolidated  balance  sheet  date. 
Management  estimates  professional  liability  reserves  and  provisions  for  losses  using 
individual  case-basis  valuations  and  actuarial  analyses.  Trends  in  the  average  frequency 
(number of claims) and ultimate average severity (cost per claim) of claims are significant 
assumptions in estimating the reserves. 
Auditing management’s professional liability claims reserves was complex and judgmental 
due to the significant estimations required in determining the reserves, particularly the 
actuarial methodology and assumptions related to the severity and frequency of claims. 

F-3
 

How We Addressed the	 
Matter in Our Audit	 

We tested management’s internal controls that address the risks of material misstatement over 
the  Company’s  professional  liability  claims  reserves  estimation  process.  For  example,  we 
tested  internal  controls  over  management’s  review  of  the  actuarial  methodology  and 
significant assumptions, and the completeness and accuracy of claims data supporting the 
recorded reserves. 

To  test  the  Company’s  determination  of  the  estimated  professional  liability  expense  and 
reserves,  we  performed  audit  procedures  that  included,  among  others,  testing  the 
completeness and accuracy of underlying claims data used by the Company and its actuaries 
in its determination of reserves and reviewing the Company’s insurance contracts by policy 
year to validate self-insured limits, deductibles and coverage limits. Additionally, with the 
involvement of our actuarial specialists, we performed audit procedures that included, among 
others,  assessing  the  actuarial  valuation  methodologies  utilized  by  management  and  its 
actuaries, testing the significant assumptions including consideration of Company-specific 
claim reporting and payment data, assessing the accuracy of management’s historical reserve 
estimates, and developing an independent range of reserves for comparison to the Company’s 
recorded amounts. 

/s/ Ernst & Young LLP 

We have served as the Company’s auditor since 1994. 

Nashville, Tennessee 
February 17, 2023 

F-4
 

HCA HEALTHCARE, INC. 
CONSOLIDATED INCOME STATEMENTS 
FOR THE YEARS ENDED DECEMBER 31, 2022, 2021 AND 2020 
(Dollars in millions, except per share amounts) 

Revenues 

........................................................................................... 

$ 

Salaries and benefits 
Supplies .
Other operating expenses
Equity in earnings of affiliates
Depreciation and amortization
Interest expense 
Losses (gains) on sales of facilities 
Losses on retirement of debt 

........................................................................ 
............................................................................................ 
................................................................ 
....................................................... 
....................................................... 
................................................................................ 
............................................... 
.......................................................... 

Income before income taxes
Provision for income taxes 
Net income 
Net income attributable to noncontrolling interests

........................................................... 
............................................................. 
........................................................................................ 
.................... 
................. 

Net income attributable to HCA Healthcare, Inc. 

Per share data: 

Basic earnings per share
Diluted earnings per share

............................................................ 
......................................................... 

Shares used in earnings per share calculations (in millions): 

Basic 
Diluted

............................................................................................. 
.......................................................................................... 

$ 

$ 
$ 

2022 

60,233  $ 

2021

58,752  $

2020 

51,533 

27,685 
9,371 
11,155 
(45)
2,969 
1,741 
(1,301)
78 
51,653 
8,580 
1,746 
6,834 
1,191 
5,643  $ 

26,779 
9,481 
9,961 
(113) 
2,853 
1,566 
(1,620) 
12 
48,919 
9,833 
2,112 
7,721 
765 
6,956  $ 

23,874 
8,369 
9,307 
(54) 
2,721 
1,584 
7 
295 
46,103 
5,430 
1,043 
4,387 
633 
3,754 

19.43  $ 
19.15  $ 

21.52  $ 
21.16  $ 

11.10 
10.93 

290.348 
294.666 

323.315 
328.752 

338.274 
343.605 

The accompanying notes are an integral part of the consolidated financial statements.
 

F-5
 

 
 
 
 
HCA HEALTHCARE, INC.
 
CONSOLIDATED COMPREHENSIVE INCOME STATEMENTS
 
FOR THE YEARS ENDED DECEMBER 31, 2022, 2021 AND 2020
 
(Dollars in millions)
 

Net income 
Other comprehensive income (loss) before taxes:
 

............................................................................................................... 

Foreign currency translation 

............................................................................ 

Unrealized gains (losses) on available-for-sale securities

Losses included in other operating expenses

........................... 
........................................... 

Defined benefit plans 

Pension costs included in salaries and benefits 

........................................................................................ 
....................................... 

Change in fair value of derivative financial instruments

Interest costs included in interest expense 

............................. 
............................................... 

Other comprehensive income (loss) before taxes
Income taxes (benefits) related to other comprehensive income items 
Other comprehensive income (loss)
Comprehensive income
Comprehensive income attributable to noncontrolling interests
Comprehensive income attributable to HCA Healthcare, Inc.

............................................... 
.......... 
..................................................................... 
.......................................................................................... 
...................... 
......................... 

2022 

2021 
$  6,834  $  7,721  $  4,387
 

2020
 

(111) 

(55) 
1 
(54) 

49 
9 
58 

(9) 

(16) 
—
(16) 

87 
28 
115 

18
 

14
 
—
 
14
 

(71)
 
28
 
(43)
 

6 
2 
8 
(99) 
(13) 
(86) 
6,748 
1,191 

(66)
 
24
 
(42)
 
(53)
 
(11)
 
(42)
 
4,345
 
633
 
$  5,557  $  7,054  $  3,712
 

1 
37 
38 
128 
30 
98 
7,819 
765 

The accompanying notes are an integral part of the consolidated financial statements.
 

F-6
 

HCA HEALTHCARE, INC. 
CONSOLIDATED BALANCE SHEETS 
DECEMBER 31, 2022 AND 2021 
(Dollars in millions) 

ASSETS 

2022 

2021 

Current assets:
 

Cash and cash equivalents 
Accounts receivable
Inventories 
Other 

.................................................................................. 
............................................................................................ 
.......................................................................................................... 
................................................................................................................... 

Property and equipment, at cost:
 

Land 
Buildings
Equipment
Construction in progress 

.................................................................................................................... 
............................................................................................................. 
........................................................................................................... 
..................................................................................... 

Accumulated depreciation 

.................................................................................. 

Investments of insurance subsidiaries
Investments in and advances to affiliates 
Goodwill and other intangible assets
Right-of-use operating lease assets
Other 

..................................................................... 
............................................................... 
...................................................................... 
......................................................................... 
....................................................................................................................... 

LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) 

Current liabilities:
 
Accounts payable
Accrued salaries
Other accrued expenses 
Long-term debt due within one year

................................................................................................ 
.................................................................................................. 
...................................................................................... 
................................................................... 

Long-term debt, less debt issuance costs and discounts of $301 and $248
Professional liability risks
Right-of-use operating lease obligations 
Income taxes and other liabilities 

............ 
....................................................................................... 
................................................................ 
........................................................................... 

Stockholders’ equity (deficit): 

Common stock $0.01 par; authorized 1,800,000,000 shares; outstanding 

277,378,300 shares — 2022 and 305,476,800 shares — 2021

Accumulated other comprehensive loss 
Retained deficit
Stockholders’ deficit attributable to HCA Healthcare, Inc.
Noncontrolling interests

........................ 
............................................................. 
................................................................................................... 
................................ 
...................................................................................... 

$ 

$ 

908 
8,891
2,068
1,776
13,643

2,799
20,221
29,981
1,756
54,757 
(29,182) 
25,575 

381
823
9,653
2,065
298
52,438

4,239
1,712
3,581
370
9,902

37,714
1,528
1,752
1,615

$

$ 

3
(490) 
(2,280) 
(2,767) 
2,694 
(73) 
52,438

$ 

$

$

$

1,451
 
8,095
1,986
2,010
13,542

2,496
19,211
28,256
1,387
51,350
27,287
) 
24,063

(

438
448
9,540
2,113
598
50,742

4,111
1,912
3,322
237
9,582

34,342
1,514
1,755

2,060

3
 
(404)
(532)
(933)

2,422
1,489
50,742

The accompanying notes are an integral part of the consolidated financial statements. 

F-7
 

 

 
 

 
 

 
 
 
 

 
 

 
 

 
 

 
 
 
 

 
 

 
 

 
 

 
 

 
 
 
 

 
 
 

 
 

 
 

 
 

 
 
 
 

 
 

 
 
 
 

 
 

 

 
 

 
 
 
 
 
HCA HEALTHCARE, INC.
 
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT)
 
FOR THE YEARS ENDED DECEMBER 31, 2022, 2021 AND 2020
 
(Dollars in millions, except per share amounts) 

Equity (Deficit) Attributable to HCA Healthcare, Inc. 

Capital 
in Excess 
of Par 
Value 
3 $ —  $

Par 
Value 

Accumulated 
Other 
Comprehensive 
Loss 

Retained 
Earnings
(Deficit) 

Equity 
Attributable to 
Noncontrolling 
Interests 

(460)  $ (2,351)  $
(42) 

2,243 $
633

Common Stock 

Shares 
(in millions) 

338.446  $

(3.287) 
4.267 

Balances, December 31, 2019 

... 
Comprehensive income (loss)
Repurchase of common stock
...... 
Share-based benefit plans 
Cash dividends declared 

($0.43 per share) 

Distributions 
Other 

................. 
.......................... 
...................................... 
... 
Balances, December 31, 2020 
......... 
Comprehensive income 
Repurchase of common stock
...... 
Share-based benefit plans 
Cash dividends declared 

Balances, December 31, 2021 

($1.92 per share) 

Distributions 
Other 

................. 
.......................... 
...................................... 
... 
Comprehensive income (loss)
Repurchase of common stock 
...... 
Share-based benefit plans 
Cash dividends declared 

($2.24 per share) 

Distributions 
Other 

................. 
.......................... 
...................................... 
... 

Balances, December 31, 2022 

339.426 

3 

(37.812) 
3.863 

305.477 

3 

(30.747) 
2.648 

300 

(6) 
294 

(578) 
280 

4 
-

(264) 
282 

(18)

3,754 
(441) 
(35) 

(150) 

(502)
98 

777 
6,956 
(7,637) 

(628) 

(404) 
(86) 

(532) 
5,643 
(6,736) 

(655) 

Total 

(565) 
4,345 
(441) 
265 

(150) 
(626) 
64 
2,892 
7,819 
(8,215) 
280 

(628) 
(749) 
90 
1,489 
6,748 
(7,000)
282 

(655) 
(1,025) 
88 
(73) 

(626)
70 
2,320 
765 

(749)
86 
2,422 
1,191 

(1,025) 
106 
2,694  $

277.378  $ 

 3 $  —  $ 

(490)  $ (2,280)  $

The accompanying notes are an integral part of the consolidated financial statements.
 

F-8
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
HCA HEALTHCARE, INC.
 
CONSOLIDATED STATEMENTS OF CASH FLOWS
 
FOR THE YEARS ENDED DECEMBER 31, 2022, 2021 AND 2020
 
(Dollars in millions) 

Cash flows from operating activities: 

Net income 
Adjustments to reconcile net income to net cash provided by 

.................................................................................................. 

Accounts receivable
Inventories and other assets
Accounts payable and accrued expenses

operating activities: 
Increase (decrease) in cash from operating assets and liabilities: 
........................................................................ 
........................................................... 
..................................... 
............................................................ 
.......................................................................................... 
.................................................... 
............................................................... 
.................................................. 
.................................................................. 
....................................................................................................... 
................................... 

Depreciation and amortization
Income taxes
Losses (gains) on sales of facilities
Losses on retirement of debt 
Amortization of debt issuance costs 
Share-based compensation 
Other

Net cash provided by operating activities 

Cash flows from investing activities: 
Purchase of property and equipment
Acquisition of hospitals and health care entities 
Sales of hospitals and health care entities 
Change in investments
Other

....................................................... 
................................... 
.............................................. 
............................................................................... 
............................................................................................................. 
Net cash used in investing activities 
............................................ 

Cash flows from financing activities: 

Issuances of long-term debt
Net change in revolving credit facilities
Repayment of long-term debt
Distributions to noncontrolling interests 
Payment of debt issuance costs
Payment of dividends 
Repurchase of common stock
Other

...................................................................... 
................................................. 
................................................................... 
................................................ 
................................................................ 
................................................................................ 
................................................................... 
............................................................................................................. 
Net cash used in financing activities
............................................ 
................ 
............................................................ 
...................................... 
................................................. 
............................................................................................. 
 ............................................................................... 

Effect of exchange rate changes on cash and cash equivalents 
Change in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period 
Interest payments 
Income tax payments, net

2022 

2021

2020

$ 

6,834

$ 

7,721  $ 

4,387 

(797)
(59)
(296)
2,969 
571 
(1,301) 
78 
29 
341
153
8,522 

(4,395) 
(224) 
1,237 
14 
(21)
(3,389)

(962) 
(540) 
999 
2,853 
(70) 
(1,620) 
12 
27 
440 
99 
8,959 

(3,577) 
(1,105) 
2,160 
(117) 
(4) 
(2,643)

5,997 
120 
(2,830) 
(1,025) 
(53) 
(653) 
(7,000) 
(212) 
(5,656)
(20)
(543) 
1,451 

908  $ 
1,662  $ 
1,175  $ 

4,344 
2,780 
(3,869) 
(749) 
(38) 
(624) 
(8,215) 
(284) 
(6,655)
(3)
(342) 
1,793 
1,451  $ 
1,502
$ 
2,182
$ 

$ 
$ 
$ 

327 
(304) 
1,255 
2,721 
41 
7 
295 
30 
362 
111 
9,232 

(2,835) 
(568) 
68 
(20)
(38)
(3,393)

2,700 
(2,480) 
(3,437) 
(626) 
(35) 
(153) 
(441) 
(205) 
(4,677)
10 
1,172 
621 
1,793 
1,607 
1,002 

The accompanying notes are an integral part of the consolidated financial statements.
 

F-9
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
HCA HEALTHCARE, INC.
 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 

NOTE 1 — ACCOUNTING POLICIES 

Reporting Entity 

HCA  Healthcare,  Inc.  is  a  holding  company  whose  affiliates  own  and  operate  hospitals  and  related  health  care 
entities. The term “affiliates” includes direct and indirect subsidiaries of HCA Healthcare, Inc. and partnerships and joint 
ventures in which such subsidiaries are partners. At December 31, 2022 these affiliates owned and operated 182 hospitals, 
126  freestanding  surgery  centers,  21  freestanding  endoscopy  centers  and  provided  extensive  outpatient  and  ancillary 
services. HCA Healthcare, Inc.’s facilities are located in 20 states and England. The terms “Company,” “HCA,” “we,” 
“our” or “us,” as used herein and unless otherwise stated or indicated by context, refer to HCA Healthcare, Inc. and its 
affiliates. The terms “facilities” or “hospitals” refer to entities owned and operated by affiliates of HCA and the term 
“employees” refers to employees of affiliates of HCA. 

Basis of Presentation 

The  preparation  of  financial  statements  in  conformity  with  generally  accepted  accounting  principles  requires 
management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements 
and accompanying notes. Actual results could differ from those estimates. 

The consolidated financial statements include all subsidiaries and entities controlled by HCA. We generally define 
“control” as ownership of a majority of the voting interest of an entity. The consolidated financial statements include 
entities in which we absorb a majority of the entity’s expected losses, receive a majority of the entity’s expected residual 
returns, or both, as a result of ownership, contractual or other financial interests in the entity. The accounts of acquired 
entities  are  included  in  our  consolidated  financial  statements  for  periods  subsequent  to  our  acquisition  of  controlling 
interests. Significant intercompany transactions have been eliminated. Investments in entities we do not control, but in 
which we have a substantial ownership interest and can exercise significant influence, are accounted for using the equity 
method. 

The  majority  of  our  expenses  are  “cost  of  revenue”  items.  Costs  that  could  be  classified  as  general  and 
administrative include our corporate office costs, which were $378 million, $400 million and $416 million for the years 
ended December 31, 2022, 2021 and 2020, respectively. 

COVID-19 

We believe the extent of COVID-19’s impact on our operating results and financial condition has been and could 
continue to be driven by many factors, most of which are beyond our control and ability to forecast. Because of these 
uncertainties, we cannot estimate how long or to what extent COVID-19 will impact our operations. 

Revenues 

Our revenues generally relate to contracts with patients in which our performance obligations are to provide health 
care services to the patients. Revenues are recorded during the period our obligations to provide health care services are 
satisfied.  Our  performance  obligations  for  inpatient  services  are  generally  satisfied  over  periods  that  average 
approximately five days, and revenues are recognized based on charges incurred in relation to total expected charges. Our 
performance obligations for outpatient services are generally satisfied over a period of less than one day. The contractual 
relationships  with  patients,  in  most  cases,  also  involve  a  third-party  payer  (Medicare,  Medicaid,  managed  care  health 
plans  and  commercial  insurance  companies,  including  plans  offered  through  the  health  insurance  exchanges)  and  the 
transaction  prices  for  the  services  provided  are  dependent  upon  the  terms  provided  by  (Medicare  and  Medicaid)  or 
negotiated with (managed care health plans and commercial insurance companies) the third-party payers. The payment 
arrangements with  third-party payers for the services  we provide to the related  patients typically  specify  payments at 
amounts less than our standard charges. Medicare generally pays for inpatient and outpatient services at prospectively 
determined rates based on clinical, diagnostic and other factors. Services provided to patients having Medicaid coverage 
are  generally  paid  at  prospectively  determined  rates  per  discharge,  per  identified  service  or  per  covered  member. 
Agreements with commercial insurance carriers, managed care and preferred provider organizations generally provide 
for  payments  based  upon  predetermined  rates  per  diagnosis,  per  diem  rates  or  discounted  fee-for-service  rates. 
Management  continually  reviews  the  contractual  estimation  process  to  consider  and  incorporate  updates  to  laws  and 
regulations  and  the  frequent  changes  in  managed  care  contractual  terms  resulting  from  contract  renegotiations  and 
renewals. 

10
 

HCA HEALTHCARE, INC.
 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
 

NOTE 1 — ACCOUNTING POLICIES (continued) 

Revenues (continued) 

Our revenues are based upon the estimated amounts we expect to be entitled to receive from patients and third-
party payers. Estimates of contractual adjustments under managed care and commercial insurance plans are based upon 
the payment terms specified in the related contractual agreements. Revenues related to uninsured patients and uninsured 
copayment and deductible amounts for patients who have health care coverage may have discounts applied (uninsured 
discounts and contractual discounts). We also record estimated implicit price concessions (based primarily on historical 
collection  experience)  related  to  uninsured  accounts  to  record  these  revenues  at  the  estimated  amounts  we  expect  to 
collect. Our revenues by primary third-party payer classification and other (including uninsured patients) for the years 
ended December 31, are summarized in the following table (dollars in millions): 

Medicare
Managed Medicare
Medicaid
Managed Medicaid
Managed care and other insurers
International (managed care and other insurers)
Other
Revenues

..............................................................
 .............................................. 
.............................................................. 
 .............................................. 
......................... 
 .. 
.................................................................... 
 .............................................................

2022 
 $  10,447 
9,201 
2,636 
3,998 
29,120 
1,317 
3,514 
 $  60,233 

Years Ended December 31, 

Ratio 

2021 

Ratio 

2020 

17.3%  $  10,447 
8,424 
15.3 
2,290 
4.4 
3,124 
6.6 
30,295 
48.3 
1,336 
2.2 
2,836 
5.9 
100.0%  $  58,752 

17.8%  $  10,420 
6,997 
14.3 
1,965 
3.9 
2,621 
5.3 
26,535 
51.6 
1,120 
2.3 
1,875 
4.8 
100.0%  $  51,533 

Ratio
 

20.2%
 
13.6
 
3.8
 
5.1
 
51.5
 
2.2
 
3.6
 
100.0%
 

Laws and regulations governing the Medicare and Medicaid programs are complex and subject to interpretation. 
Estimated reimbursement amounts are adjusted in subsequent periods as cost reports are prepared and filed and as final 
settlements are determined (in relation to certain government programs, primarily Medicare, this is generally referred to 
as the “cost report” filing and settlement process). The adjustments to estimated Medicare and Medicaid reimbursement 
and  disproportionate-share  amounts,  related  primarily  to  cost  reports  filed  during  the  respective  year,  resulted  in  net 
increases to revenues of $56 million, $53 million and $70 million in 2022, 2021 and 2020, respectively. The adjustments 
to estimated reimbursement amounts related primarily to cost reports filed during previous years resulted in a net increase 
to revenues of $42 million in 2022, a net increase to revenues of $19 million in 2021 and a net reduction to revenues of 
$5 million in 2020. 

The Emergency Medical Treatment and Labor Act (“EMTALA”) requires any hospital participating in the Medicare 
program  to  conduct  an  appropriate  medical  screening  examination  of  every  person  who  presents  to  the  hospital’s 
emergency room for treatment and, if the individual is suffering from an emergency medical condition, to either stabilize 
the condition or make an appropriate transfer of the individual to a facility able to handle the condition. The obligation to 
screen and stabilize emergency medical conditions exists regardless of an individual’s ability to pay for treatment. Federal 
and state laws and regulations require, and our commitment to providing quality patient care encourages, us to provide 
services to patients who are financially unable to pay for the health care services they receive. 

Patients treated at hospitals for non-elective care, who have income at or below 400% of the federal poverty level, 
are eligible for charity care, and we limit the patient responsibility amounts for these patients to a percentage of their 
annual household income, computed on a sliding scale based upon their annual income and the applicable percentage of 
the federal poverty level. Patients treated at hospitals for non-elective care, who have income above 400% of the federal 
poverty level, are eligible for certain other discounts which limit the patient responsibility amounts for these patients to a 
percentage  of  their  annual  household  income,  computed  on  a  sliding  scale  based  upon  their  annual  income  and  the 
applicable percentage of the federal poverty level. We apply additional discounts to limit patient responsibility for certain 
emergency services. The federal poverty level is established by the federal government and is based on income and family 
size.  Because  we  do  not  pursue  collection  of  amounts  determined  to  qualify  as  charity  care,  they  are  not  reported  in 
revenues. We provide discounts to uninsured patients who do not qualify for Medicaid or charity care. We may attempt 
to provide assistance to uninsured patients to help determine whether they may qualify for Medicaid, other federal or state 
assistance, or charity care. If an uninsured patient does not qualify for these programs, the uninsured discount is applied. 

F-11
 

HCA HEALTHCARE, INC.
 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
 

NOTE 1 — ACCOUNTING POLICIES (continued) 

Revenues (continued) 

The collection of outstanding receivables from Medicare, Medicaid, managed care payers, other third-party payers 
and patients is our primary source of cash and is critical to our operating performance. The primary collection risks relate 
to uninsured patient accounts, including patient accounts for which the primary insurance carrier has paid the amounts 
covered  by  the  applicable  agreement,  but  patient  responsibility  amounts  (deductibles  and  copayments)  remain 
outstanding. Implicit price concessions relate primarily to amounts due directly from patients. Estimated implicit price 
concessions are recorded for all uninsured accounts, regardless of the age of those accounts. Accounts are written off 
when all reasonable collection efforts have been performed. 

The estimates for implicit price concessions are based upon management’s assessment of historical writeoffs and 
expected  net  collections,  business  and  economic  conditions,  trends  in  federal,  state  and  private  employer  health  care 
coverage and other collection indicators. Management relies on the results of detailed reviews of historical writeoffs and 
collections at facilities that represent a majority of our revenues and accounts receivable (the “hindsight analysis”) as a 
primary  source  of  information  in  estimating  the  collectability  of  our  accounts  receivable.  We  perform  the  hindsight 
analysis  quarterly,  utilizing  rolling  twelve-months  accounts  receivable  collection  and  writeoff  data.  We  believe  our 
quarterly updates to the estimated implicit price concession amounts at each of our hospital facilities provide reasonable 
estimates of our revenues and valuations of our accounts receivable. These routine, quarterly changes in estimates have 
not resulted in material adjustments to the valuations of our accounts receivable or period-to-period comparisons of our 
revenues. At December 31, 2022 and 2021, estimated implicit price concessions of $6.780 billion and $6.784 billion, 
respectively, had been recorded to adjust our revenues and accounts receivable to the estimated amounts we expect to 
collect. 

To quantify the total impact of the trends related to uninsured patient accounts, we believe it is beneficial to view 
total  uncompensated  care,  which  is  comprised  of  charity  care,  uninsured  discounts  and  implicit  price  concessions.  A 
summary of the estimated cost of total uncompensated care for the years ended December 31, follows (dollars in millions): 

Patient care costs (salaries and benefits, supplies, other 
operating 

expenses and depreciation and amortization) 

............................
Cost-to-charges ratio (patient care costs as percentage of gross 

patient charges)

Total uncompensated care 
Multiply by the cost-to-charges ratio
Estimated cost of total uncompensated care

.......................................................................... 
............................................................
............................................ 
.................................

  $ 

2022 

2021 

2020 

  $ 

51,180 

$ 

49,074 

$ 

44,271 

  $ 

31,734 

11.0% 

11.0% 
3,491 

11.3% 

29,642 

11.3% 
3,350 

12.0% 

29,029 

12.0% 
3,483 

$ 

$ 

$ 

$ 

The total uncompensated care amounts include charity care of $13.615 billion, $13.644 billion and $13.763 billion 
for  the  years  ended  December  31,  2022,  2021  and  2020,  respectively.  The  estimated  cost  of  charity  care  was  $1.498 
billion, $1.542 billion and $1.652 billion for the years ended December 31, 2022, 2021 and 2020, respectively. 

Cash and Cash Equivalents 

Cash and cash equivalents include highly liquid investments with a maturity of three months or less when purchased. 
Our insurance subsidiaries’ cash equivalent investments in excess of the amounts required to pay estimated professional 
liability claims during the next twelve months are not included in cash and cash equivalents as these funds are not available 
for general corporate purposes. Carrying values of cash and cash equivalents approximate fair value due to the short-term 
nature of these instruments. 

Our cash management system provides for daily investment of available balances and the funding of outstanding 
checks  when  presented  for  payment.  Outstanding,  but  unpresented,  checks  totaling  $656  million  and  $536  million  at 
December 31, 2022 and 2021, respectively, have been included in “accounts payable” in the consolidated balance sheets. 
Upon presentation for payment, these checks are funded through available cash balances or our credit facility. 

F-12
 

HCA HEALTHCARE, INC.
 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
 

NOTE 1 — ACCOUNTING POLICIES (continued) 

Accounts Receivable 

We  receive  payments  for  services  rendered  from  federal  and  state  agencies  (under  the  Medicare  and  Medicaid 
programs),  managed  care  health  plans,  commercial  insurance  companies,  employers  and  patients.  We  recognize  that 
revenues  and  receivables  from  government  agencies  are  significant  to  our  operations,  but  do  not  believe  there  are 
significant  credit  risks  associated  with  these  government  agencies.  We  do  not  believe  there  are  any  other  significant 
concentrations of revenues from any particular payer that would subject us to any significant credit risks in the collection 
of our accounts receivable. Days revenues in accounts receivable were 53 days, 49 days and 45 days at December 31, 
2022, 2021 and 2020, respectively. Changes in general economic conditions, patient accounting service center operations, 
payer mix, payer claim processing, or federal or state governmental health care coverage could affect our collection of 
accounts receivable, cash flows and results of operations. 

Inventories 

Inventories are stated at the lower of cost (first-in, first-out) or market. 

Property and Equipment 

Depreciation expense, computed using the straight-line method, was $2.941 billion in 2022, $2.826 billion in 2021 
and $2.693 billion in 2020. Buildings and improvements are depreciated over estimated useful lives ranging generally 
from 10 to 40 years. Estimated useful lives of equipment vary generally from four to 10 years. 

When events, circumstances or operating results indicate the carrying values of certain property and equipment 
expected to be held and used might be impaired, we prepare projections of the undiscounted future cash flows expected 
to result from the use of the assets and their eventual disposition. If the projections indicate the recorded amounts are not 
expected to be recoverable, such amounts are reduced to estimated fair value. Fair value may be estimated based upon 
internal evaluations that include quantitative analyses of revenues and cash flows, reviews of recent sales of similar assets 
and independent appraisals. 

Property and equipment to be disposed of are reported at the lower of their carrying amounts or fair value less costs 
to sell or close. The estimates of fair value are usually based upon recent sales of similar assets and market responses 
based upon discussions with and offers received from potential buyers. 

Investments of Insurance Subsidiaries 

At December 31, 2022 and 2021, the investment securities held by our insurance subsidiaries were classified as 
“available-for-sale” as defined in Accounting Standards Codification (“ASC”) No. 320, Investments — Debt Securities 
and are recorded at fair value. The investment securities are held for the purpose of providing a funding source to pay 
liability  claims  covered  by  the  insurance  subsidiaries.  We  perform  quarterly  assessments  of  individual  investment 
securities to determine whether declines in fair value are due to credit-related or noncredit-related factors. Our investment 
securities evaluation process involves subjective judgments, often involves estimating the outcome of future events, and 
requires a significant level of professional judgment in determining whether a credit-related impairment has occurred. We 
evaluate,  among  other  things,  the  financial  position  and  near  term  prospects  of  the  issuer,  conditions  in  the  issuer’s 
industry, liquidity of the investment, changes in the amount or timing of expected future cash flows from the investment, 
and  recent  downgrades  of  the  issuer  by  a  rating  agency,  to  determine  if,  and  when,  a  decline  in  the  fair  value  of  an 
investment below amortized cost is considered to be a credit-related impairment. The extent to which the fair value of the 
investment is less than amortized cost and our ability and intent to retain the investment, to allow for any anticipated 
recovery of the investment’s fair value, are important components of our investment securities evaluation process. 

F-13
 

HCA HEALTHCARE, INC.
 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
 

NOTE 1 — ACCOUNTING POLICIES (continued) 

Goodwill and Intangible Assets 

Goodwill is not amortized but is subject to annual impairment tests. In addition to the annual impairment review, 
impairment reviews are performed whenever circumstances indicate a possible impairment may exist. Impairment testing 
for goodwill is done at the reporting unit level. Reporting units are one level below the business segment level, and our 
impairment testing is performed at the operating division level. We compare the fair value of the reporting unit assets to 
the carrying amount, on at least an annual basis, to determine if there is potential impairment. If the fair value of the 
reporting unit assets is less than their carrying value, an impairment loss is recognized. Fair value is estimated based upon 
internal evaluations of each reporting unit that include quantitative analyses of market multiples, revenues and cash flows 
and reviews of recent sales of similar facilities. No goodwill impairments were recognized during 2022, 2021 or 2020. 

During 2022, goodwill increased by $262 million related to acquisitions and declined by $105 million related to 
foreign  currency  translation  and  other  adjustments.  During  2021,  goodwill  increased  by  $1.002  billion  related  to 
acquisitions and declined by $75 million related to foreign currency translation and other adjustments. 

During  2022,  identifiable  intangible  assets  declined  by  $44  million  due  to  amortization  and  other  adjustments. 
During 2021, identifiable intangible assets increased by $60 million related to acquisitions and declined by $25 million 
due to amortization and other adjustments. Identifiable intangible assets with finite lives are amortized over estimated 
lives ranging generally from three to 10 years. The gross carrying amounts of amortizable identifiable intangible assets at 
both December 31, 2022 and 2021 were $274 million and accumulated amortization was $208 million and $175 million, 
respectively. The gross carrying amounts of indefinite-lived identifiable intangible assets at December 31, 2022 and 2021 
were $293 million and $304 million, respectively. Indefinite-lived identifiable intangible assets are not amortized but are 
subject to annual impairment tests, and impairment reviews are performed whenever circumstances indicate a possible 
impairment may exist. 

Debt Issuance Costs and Discounts 

Debt issuance costs and discounts are amortized based upon the terms of the respective debt obligations. The gross 
carrying  amounts  of  debt  issuance  costs  and  discounts  at  December  31,  2022  and  2021  were  $496  million  and  $446 
million, respectively, and accumulated amortization was $195 million and $198 million, respectively. Amortization of 
debt issuance costs and discounts is included in interest expense and was $29 million, $27 million and $30 million for 
2022, 2021 and 2020, respectively. 
Professional Liability Claims 

Reserves for professional liability risks were $2.043 billion and $2.022 billion at December 31, 2022 and 2021, 
respectively.  The  current  portion  of  the  reserves,  $515  million  and  $508  million  at  December  31,  2022  and  2021, 
respectively, is included in “other accrued expenses” in the consolidated balance sheets. Provisions for losses related to 
professional liability risks were $517 million, $453 million and $435 million for 2022, 2021 and 2020, respectively, and 
are  included  in  “other  operating  expenses”  in  our  consolidated  income  statements.  Provisions  for  losses  related  to 
professional liability risks are based upon actuarially determined estimates. During 2022, 2021 and 2020, we recorded 
reductions to the provision for professional liability risks of $55 million, $87 million and $112 million, respectively, due 
to the receipt of updated actuarial information. Loss and loss expense reserves represent the estimated ultimate net cost 
of all reported and unreported losses incurred through the respective consolidated balance sheet dates. The reserves for 
unpaid  losses  and  loss  expenses  are  estimated  using  individual  case-basis  valuations  and  actuarial  analyses.  Those 
estimates are subject to the effects of trends in loss severity and frequency. The estimates are continually reviewed and 
adjustments  are  recorded  as  experience  develops  or  new  information  becomes  known.  Adjustments  to  the  estimated 
reserve amounts are included in current operating results. The reserves for professional liability risks cover approximately 
2,000 and 2,100 individual claims at December 31, 2022 and 2021, respectively, and estimates for unreported potential 
claims. The time period required to resolve these claims can vary depending upon the jurisdiction and whether the claim 
is settled or litigated. During 2022 and 2021, $497 million and $384 million, respectively, of net payments were made for 
professional and general liability claims. The estimation of the timing of payments beyond a year can vary significantly. 
Although considerable variability is inherent in professional liability reserve estimates, we believe the reserves for losses 
and loss expenses are adequate; however, there can be no assurance the ultimate liability will not exceed our estimates. 

F-14
 

HCA HEALTHCARE, INC.
 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
 

NOTE 1 — ACCOUNTING POLICIES (continued) 

Professional Liability Claims (continued) 

A portion of our professional liability risks is insured through our insurance subsidiary. Subject, in most cases, to a 
$15 million per occurrence self-insured retention, our facilities are insured by our insurance subsidiary for losses up to 
$75 million per occurrence. The insurance subsidiary has obtained reinsurance for professional liability risks generally 
above a retention level of either $25 million or $35 million per occurrence, depending on the jurisdiction for the related 
claim. We also maintain professional liability insurance with unrelated commercial carriers for losses in excess of amounts 
insured by our insurance subsidiary. 

The obligations covered by reinsurance and excess insurance contracts are included in the reserves for professional 
liability risks, as we remain liable to the extent the reinsurers and excess insurance carriers do not meet their obligations 
under the reinsurance and excess insurance contracts. The amounts receivable under the reinsurance contracts were $48 
million and $44 million at December 31, 2022 and 2021, respectively, recorded in “other assets,” and $12 million and 
$11 million at December 31, 2022 and 2021, respectively, recorded in “other current assets.” 

Financial Instruments 

Derivative financial instruments have been employed to manage risks, including interest rate exposures, and have 
not been used for trading or speculative purposes. Changes in the fair value of derivatives are recognized periodically 
either in earnings or in stockholders’ equity, as a component of other comprehensive income, depending on whether the 
derivative financial instrument qualifies for hedge accounting, and if so, whether it qualifies as a fair value hedge or a 
cash flow hedge. Gains and losses on derivatives designated as cash flow hedges, to the extent they are effective, are 
recorded in other comprehensive income, and subsequently reclassified to earnings to offset the impact of the hedged 
items when they occur. The net interest paid or received on interest rate swaps is recognized as interest expense. 

Noncontrolling Interests in Consolidated Entities 

The consolidated financial statements include all assets, liabilities, revenues and expenses of less than 100% owned 
entities that we control. Accordingly, we have recorded noncontrolling interests in the earnings and equity of such entities. 

NOTE 2 — SHARE-BASED COMPENSATION 

Stock Incentive Plans 

Our stock incentive plans are designed to promote the long-term financial interests and growth of the Company by 
attracting and retaining management and other personnel, motivating them to achieve long range goals and aligning their 
interests with those of our stockholders. Stock appreciation right (“SARs”) and restricted share unit (“RSUs”) grants vest 
solely based upon continued employment over a specific period of time, and performance share unit (“PSUs”) grants vest 
based upon both continued employment over a specific period of time and the achievement of predetermined financial 
targets over a specific period of time. At December 31, 2022 there were 13.826 million shares available for future grants. 

Employee Stock Purchase Plan 

Our employee stock purchase plan (“ESPP”) provides our participating employees an opportunity to obtain shares 
of our common stock at a discount (through payroll deductions over three-month periods). At December 31, 2022, 4.436 
million shares of common stock were reserved for ESPP issuances. During 2022, 2021 and 2020, the Company recognized 
$16 million, $15 million and $13 million, respectively, of compensation expense related to the ESPP. 

F-15
 

HCA HEALTHCARE, INC.
 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
 

NOTE 2 — SHARE-BASED COMPENSATION (continued) 

SAR, RSU and PSU Activity 

The fair value of each SAR award is estimated on the grant date, using valuation models and the weighted average 
assumptions indicated in the following table. Awards under our stock incentive plans generally vest based on continued 
employment (“Time SARs” and “RSUs”) or based upon continued employment and the achievement of certain financial 
targets (“Performance SARs” and “PSUs”). PSUs have a three-year cumulative earnings per share target, and the number 
of PSUs earned can vary from zero (for actual performance of less than 90% of target) to two times the original PSU grant 
(for actual performance of 110% or more of target). Each grant is valued as a single award with an expected term equal 
to the average expected term of the component vesting tranches. The expected term of the share-based award is limited 
by the contractual term. We use historical exercise behavior data and other factors to estimate the expected term of the 
SARs. 

Compensation  cost  is  recognized  on  the  straight-line  attribution  method.  The  straight-line  attribution  method 
requires that total compensation expense recognized must at least equal the vested portion of the grant-date fair value. 
The expected volatility is derived using historical stock price information for our common stock and the volatility implied 
by the trading of options to purchase our stock on open-market exchanges. The risk-free interest rate is the approximate 
yield on United States Treasury Strips having a life equal to the expected share-based award life on the date of grant. The 
expected life is an estimate of the number of years a share-based award will be held before it is exercised. The expected 
dividend yield is estimated based on the assumption that the dividend yield at date of grant will be maintained over the 
expected life of the grant. 

Risk-free interest rate ................................................. 
Expected volatility
 ..................................................... 
Expected life, in years
 ................................................ 
Expected dividend yield
............................................. 

2022 

1.64% 
34% 

5.11 
0.95% 

2021 

0.68% 
36% 

6.17 
1.10% 

2020 

1.44% 
27% 

6.15 
1.19% 

Information  regarding  Time  SARs  and  Performance  SARs  activity  during  2022,  2021  and  2020  is  summarized 

below (share amounts in thousands): 

SARs outstanding, December 31,2020

SARs outstanding, December 31,2019

Granted
Exercised
Cancelled

Granted
Exercised
Cancelled

Granted
Exercised
Cancelled

 .... 
................................................. 
.............................................. 
.............................................. 
 . ... 
................................................. 
.............................................. 
.............................................. 
 .... 
................................................. 
.............................................. 
.............................................. 
 . ... 
 .... 

SARs outstanding, December 31,2022
SARs exercisable, December 31, 2022

SARs outstanding, December 31,2021

Time
SARs

9,050
1,120
(2,159)
(175)
7,836 
877 
(2,443)
(108)
6,162 
570 
(660) 
(112)
5,960 
4,022 

Performance 
SARs 

2,144
—
(1,325) 
—
819
— 
(533)
—
286 
—
(159) 
—
127
127

Weighted 
Average 
Exercise 
Price 

Total 
SARs 
71.79
11,194  $ 
144.47
1,120 
44.07
(3,484)
111.69
(175)
91.53
8,655 
174.98
877 
67.57
(2,976)
138.32
(108)
113.15 
6,448 
236.00
570 
90.84 
(819) 
(112)
182.87
6,087  $  126.38
4,149  $  102.20

Weighted 
Average 
Remaining 
Contractual 
Term 

Aggregate
Intrinsic 
Value 
(dollars in
millions) 

5.7 years $ 
4.7 years $ 

691
572

F-16
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
HCA HEALTHCARE, INC.
 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
 

NOTE 2 — SHARE-BASED COMPENSATION (continued)
 

The weighted average fair values of SARs granted during 2022, 2021 and 2020 were $69.55, $54.57 and $35.98 
per share, respectively. The intrinsic values of SARs exercised during 2022, 2021 and 2020 were $115 million, $404 
million  and  $328  million,  respectively.  As  of  December  31,  2022,  the  unrecognized  compensation  cost  related  to 
nonvested SARs was $40 million. 

SAR, RSU and PSU Activity (continued) 

Information regarding RSUs and PSUs activity during 2022, 2021 and 2020 is summarized below (share amounts 

in thousands): 

RSUs and PSUs outstanding, December 31, 2020

RSUs and PSUs outstanding, December 31, 2019....... 
Granted ..................................................................... 
Performance adjustment 
........................................... 
Vested
....................................................................... 
Cancelled 
.................................................................. 
....... 
..................................................................... 
 ........................................... 
....................................................................... 
 .................................................................. 
....... 
  .................................................................... 
 ........................................... 
....................................................................... 
 .................................................................. 
....... 

Granted .
Performance adjustment
Vested
Cancelled

Granted 
Performance adjustment
Vested
Cancelled

RSUs and PSUs outstanding, December 31, 2021

RSUs and PSUs outstanding, December 31, 2022

RSUs 

2,620 
1,048 
— 
(1,030) 
(162) 
2,476 
899 
— 
(992) 
(192) 
2,191 
611 
— 
(878) 
(140) 
1,784 

PSUs 

3,035 
808 
206 
(1,364) 
(93) 
2,592 
689 
684 
(1,772) 
(110) 
2,083 
455 
699 
(1,399) 
(123) 
1,715 

Weighted 
Average 
Grant 
Date Fair 
Value 

Total RSUs 
and PSUs 

5,655  $ 
1,856 
206 
(2,394) 
(255) 
5,068 
1,588 
684 
(2,764) 
(302) 
4,274 
1,066 
699 
(2,277) 
(263) 
3,499  $ 

105.23 
144.17 
81.89 
88.63 
124.50 
125.40 
174.34 
102.02 
106.62 
149.07 
150.32 
235.71 
138.45 
138.41 
183.86 
179.18 

The fair values of RSUs and PSUs that vested during 2022, 2021 and 2020 were $550 million, $475 million and 
$349 million, respectively. As of December 31, 2022, the unrecognized compensation cost related to RSUs and PSUs was 
$324 million. 

NOTE 3 — ACQUISITIONS AND DISPOSITIONS 

During  2022,  we  paid  $224  million  to  acquire  nonhospital  health  care  entities  (noncontrolling  interests  of  $72 
million were recorded). During 2021, we paid $67 million to acquire two hospital facilities, one in southern Georgia and 
one in Tennessee, $594 million to acquire a network of urgent care centers in Florida and $114 million to acquire other 
nonhospital health care entities (noncontrolling interests of $117 million were recorded).  We also paid $330 million and 
assumed certain liabilities to acquire an 80% interest (noncontrolling interests of $100 million were recorded) in a venture 
providing post-acute care services (home health and hospice). During 2020, we paid $568 million to acquire a hospital in 
New Hampshire and other nonhospital health care entities. Purchase price amounts have been allocated to the related 
assets acquired and liabilities assumed based upon their respective fair values. The purchase price paid in excess of the 
fair value of identifiable net assets of these acquired entities aggregated $262 million, $1.002 billion and $279 million in 
2022,  2021  and  2020,  respectively.  The  consolidated  financial  statements  include  the  accounts  and  operations  of  the 
acquired entities subsequent to the respective acquisition dates. The pro forma effects of these acquired entities on our 
results of operations for periods prior to the respective acquisition dates were not significant. 

F-17
 

HCA HEALTHCARE, INC.
 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
 

NOTE 3 — ACQUISITIONS AND DISPOSITIONS (continued)
 

During 2022, we received proceeds of $326 million and recognized a pretax gain of $274 million ($200 million 
after tax) related to sales of real estate and other health care entity investments. We also received proceeds of $911 million 
and recognized a pretax gain of $1.027 billion ($527 million after tax and amounts attributable to noncontrolling interests) 
related to the sale of a controlling interest in a subsidiary of our group purchasing organization. During 2021, we received 
proceeds of $1.502 billion and recognized a pretax gain of $1.226 billion ($920 million after tax) related to the sales of 
five hospital facilities in Georgia, comprised of three facilities from our American Group (northern Georgia market) and 
two  facilities  from  our  National  Group  (southern  Georgia  market).  We  also  received  proceeds  of  $658  million  and 
recognized a pretax gain of $394 million ($294 million after tax) related to sales of other health care entity investments 
and real estate. During 2020, we received proceeds of $68 million and recognized a pretax loss of $7 million ($9 million 
after tax) related to the sale of a hospital facility from our American Group (Mississippi market) and sales of real estate 
and other investments. 

NOTE 4 — INCOME TAXES 

The provision for income taxes consists of the following (dollars in millions): 

Current: 

Federal 
State 
Foreign
Deferred: 
Federal 
State 
Foreign

............................... 
................................... 
............................... 

............................... 
................................... 
............................... 

$ 

$ 

2022 

2021 

2020 

1,222 $  1,769  $ 

206
18

261
27
12

311 
15 

24 
(18)
11 

1,746 $  2,112  $ 

1,021
126
5

(73)

(39)

3
1,043

Our provision for income taxes for the years ended December 31, 2022, 2021 and 2020 included tax benefits of $77 
million, $119 million and $92 million, respectively, related to the settlement of employee equity awards. Our foreign 
pretax  income  was  $66  million,  $64  million  and  $9  million  for  the  years  ended  December  31,  2022,  2021  and  2020, 
respectively. 

A reconciliation of the federal statutory rate to the effective income tax rate follows: 

.......................................................................................... 
.................................................... 
................................................... 
................................. 
.................................................................................................. 
...... 

Federal statutory rate
State income taxes, net of federal tax benefit 
Change in liability for uncertain tax positions 
Tax benefit from settlements of employee equity awards
Other items, net 
Effective income tax rate on income attributable to HCA Healthcare, Inc. 
Income attributable to noncontrolling interests from consolidated 
partnerships 
Effective income tax rate on income before income taxes 

........................................................................................................ 
................................ 

2022 

21.0%
2.3 
0.7 
(0.9) 
0.5 
23.6 

2021 

21.0% 
2.0 
0.7 
(1.2) 
0.8 
23.3 

2020 

21.0% 
1.9 
(0.2) 
(1.8) 
0.8 
21.7 

(3.3) 
20.3%

(1.8) 
21.5% 

(2.5) 
19.2% 

F-18
 

 

 
 

 
 

 
 
 
 
 
 
 

 
 
 
 
 
 
HCA HEALTHCARE, INC.
 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
 

NOTE 4 — INCOME TAXES (continued)
 

A  summary  of  the  items  comprising  our  deferred  tax  assets  and  liabilities  at  December  31  follows  (dollars  in 

millions): 

Depreciation and fixed asset basis differences 
Allowances for professional liability and other risks
Accounts receivable
Compensation 
Right-of-use lease assets and obligations 
Other 

.............. 
 .... 
....................................................... 
................................................................ 
...................... 
.............................................................................. 

$ 

$

Assets 

Liabilities 

Assets 

938  $  — $

2022 

— $
430 
368 
402 
451 
536 
2,187 

$

2021

Liabilities

737
—
—
—
419
652
1,808

$

426 
348
502 
428 
499 
$ 2,203 

438 
698 
2,074

At December 31, 2022, federal and state net operating loss carryforwards (expiring in years 2025 through 2039) 
available  to  offset  future  taxable  income  approximated  $28  million  and  $193  million,  respectively.  Utilization  of  net 
operating loss carryforwards in any one year may be limited. 

The  following  table  summarizes  the  activity  related  to  our  gross  unrecognized  tax  benefits,  excluding  accrued 

interest of $129 million and $99 million as of December 31, 2022 and 2021, respectively (dollars in millions): 

Balance at January 1
Additions based on tax positions related to the current year
Additions for tax positions of prior years
Reductions for tax positions of prior years 
Settlements 
Lapse of applicable statutes of limitations 
Balance at December 31

................................................................. 
.... 
................................. 
.............................. 
............................................................................... 
............................... 

...........................................................  $

$

2022 

576 
25 
50 
(4) 
(1) 
(7) 
639 

2021
 
469
57
66
(6)
(3)
(7)
576

$

$

Unrecognized tax benefits of $278 million as of December 31, 2022 ($217 million as of December 31, 2021) would 

affect the effective rate, if recognized. 

The  Internal  Revenue  Service  (“IRS”)  was  conducting  an  examination  of  the  Company’s  2016,  2017  and  2018
 
federal income tax returns and the 2019 return for one affiliated partnership at December 31, 2022. We are also subject
 
to examination by state and foreign taxing authorities. Depending on the resolution of any federal, state and foreign tax
 
disputes, the completion of examinations by federal, state or foreign taxing authorities, or the expiration of statutes of
 
limitation  for  specific  taxing  jurisdictions,  we  believe  it  is  reasonably  possible  that  our  liability  for  unrecognized  tax
 
benefits may significantly increase or decrease within the next 12 months. However, we are currently unable to estimate
 
the range of any possible change.
 

F-19
 

 
 
 

 
 
 
 

 

 

 

 

 

 
 
 
 
 
 
 

 

 

 

 

 

 
 
 

 
HCA HEALTHCARE, INC.
 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
 

NOTE 5 — EARNINGS PER SHARE
 

We  compute  basic  earnings  per  share  using  the  weighted  average  number  of  common  shares  outstanding.  We 
compute diluted earnings per share using the weighted average number of common shares outstanding plus the dilutive 
effect of outstanding SARs, RSUs and PSUs, computed using the treasury stock method. During 2022, 2021 and 2020, 
we repurchased 30.747 million shares, 37.812 million shares and 3.287 million shares, respectively, of our common stock. 
The following table sets forth the computations of basic and diluted earnings per share for the years ended December 31, 
2022, 2021 and 2020 (dollars and shares in millions, except per share amounts): 

Net income attributable to HCA Healthcare, Inc

. .... 

$

Weighted average common shares outstanding
Effect of dilutive incremental shares
Shares used for diluted earnings per share
Earnings per share:

 ....... 
........................ 
............... 

2022 

5,643 $

2021 

6,956  $ 

2020 

3,754 

290.348
4.318
294.666

323.315
5.437
328.752 

338.274
5.331
343.605


Basic earnings per share
Diluted earnings per share

.......................................
....................................

  $ 
  $

19.43  $
$ 
19.15 

21.52 
$
21.16  $

11.10 
10.93 

NOTE 6 — INVESTMENTS OF INSURANCE SUBSIDIARIES 

A summary of the insurance subsidiaries’ investments at December 31 follows (dollars in millions): 

2022 
Unrealized
Amounts 

Gains

Losses

Fair
Value

Amortized 
Cost

Debt securities 
Money market funds and other

......................................................... 
................................ 

$ 

$

415  $ 
96 
511

$

— $
—
—

$

Amounts classified as current assets
Investment carrying value

........................ 
........................................ 

(38)
—
(38)

$

$

377
96
473
(92)
381

Debt securities 
Money market funds and other

......................................................... 
................................ 

Amounts classified as current assets 
Investment carrying value

....................... 
....................................... 

$

$

Amortized 
Cost 

400  $
125 
525 $

2021 
Unrealized 
Amounts 

Gains 

18 $ 
— 
18 $

Losses 

(2) $
— 
(2)

$

Fair 
Value 

416
125
541
(103)
438 

At December 31, 2022 and 2021, the investments in debt securities of our insurance subsidiaries were classified as 
“available-for-sale.” Changes in unrealized gains and losses are recorded as adjustments to other comprehensive income 
(loss). 

F-20
 

 
 




 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

 
 
 
 
 
 
 
 
HCA HEALTHCARE, INC.
 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
 

NOTE 6 — INVESTMENTS OF INSURANCE SUBSIDIARIES (continued)
 

Scheduled maturities of investments in debt securities at December 31, 2022 were as follows (dollars in millions): 

Due in one year or less 
Due after one year through five years 
Due after five years through ten years
Due after ten years

....................................... 
................ 
 ............... 
.............................................. 

$

$

Amortized 
Cost 

31  $
121 
185 
78 
415  $

Fair 
Value 

31

116

161

69

377 

The average expected maturity of the investments in debt securities at December 31, 2022 was 5.3 years, compared 
to the average scheduled maturity of 8.6 years. Expected and scheduled maturities may differ because the issuers of certain 
securities have the right to call, prepay or otherwise redeem such obligations prior to their scheduled maturity date. 

NOTE 7 — ASSETS AND LIABILITIES MEASURED AT FAIR VALUE 

Accounting Standards Codification 820, Fair Value Measurements and Disclosures (“ASC 820”) emphasizes fair 
value  is  a  market-based  measurement,  and  fair  value  measurements  should  be  determined  based  on  the  assumptions 
market participants would use in pricing assets or liabilities. ASC 820 utilizes a fair value hierarchy that distinguishes 
between market participant assumptions based on market data obtained from sources independent of the reporting entity 
(observable inputs classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about 
market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). 

Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs 
are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or 
indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs 
observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates, and yield 
curves observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, which 
are typically based on an entity’s own assumptions, as there is little, if any, related market activity. In instances where the 
determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level 
in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input significant 
to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value 
measurement in its entirety requires judgment. 

The investments of our insurance subsidiaries are generally classified within Level 1 or Level 2 of the fair value 
hierarchy because they are valued using quoted market prices, broker or dealer quotations, or alternative pricing sources 
with reasonable levels of price transparency. 

The following tables summarize our assets and liabilities measured at fair value on a recurring basis as of December 
31, 2022 and 2021, aggregated by the level in the fair value hierarchy within which those measurements fall (dollars in 
millions): 

Assets: 

Investments of insurance subsidiaries: 

Debt securities.............................................  $ 
Money market funds and other ................... 
Investments of insurance subsidiaries......... 
Less amounts classified as current assets ... 

$ 

2022 

Fair Value Measurements Using

Quoted Prices in 
Active Markets for
Identical Assets 
and Liabilities 
(Level 1) 

Significant 
Other 
Observable 
Inputs 
(Level 2) 

Significant 
Unobservable
Inputs 
(Level 3) 

Fair Value 

— 
96 
96 
(92) 
4 

$

$

377 
— 
377 
— 
377 

$

$ 

— 
— 
— 
— 
— 

377  $
96 
473 
(92) 
381  $

F-21
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
HCA HEALTHCARE, INC. 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 

NOTE 7 — ASSETS AND LIABILITIES MEASURED AT FAIR VALUE (continued) 

2021 

Quoted Prices in 
Active Markets for
Identical Assets 
and Liabilities 
(Level 1) 

Fair Value Measurements Using 
Significant 
Other 
Observable 
Inputs 
(Level 2) 

Significant 
Unobservable 
Inputs 
(Level 3) 

Fair 
Value 

Assets: 

Investments of insurance subsidiaries: 

Debt securities 
Money market funds and other
Investments of insurance subsidiaries 
Less amounts classified as current assets 

............................................. 
.................... 
......... 
.... 

$

$

416 $
125
541
(103) 
438 $

Liabilities: 

Interest rate swap (Other accrued expenses)

 ... 

$

8  $

—  $
125 
125 
(103) 

22 $

—  $

416 $
—
416
—
416 $

8  $

—
— 
—
—
—

—

The estimated fair value of our long-term debt was $35.555 billion and $38.541 billion at December 31, 2022 and 
2021,  respectively,  compared  to  carrying  amounts,  excluding  debt  issuance  costs  and  discounts,  aggregating  $38.385 
billion and $34.827 billion, respectively. The estimates of fair value are generally based upon the quoted market prices or 
quoted market prices for similar issues of long-term debt with the same maturities. 

NOTE 8 — LONG-TERM DEBT 

A  summary  of  long-term  debt  at  December  31,  including  related  interest  rates  at  December  31,  2022,  follows 

(dollars in millions): 

Senior secured asset-based revolving credit facility (effective interest rate of 5.6%)
Senior secured revolving credit facility 
Senior secured term loan facilities (effective interest rate of 5.9%) 
Senior secured notes
Other senior secured debt (effective interest rate of 3.9%)
Senior secured debt 
Senior unsecured notes (effective interest rate of 4.9%)
Debt issuance costs and discounts
Total debt (average life of 9.6 years, rates averaging 5.0%)
Less amounts due within one year 

 .. 
........................................................................ 
............................. 
...................................................................................................... 
........................................... 
....................................................................................................... 
............................................... 
................................................................................. 
......................................... 
................................................................................ 

2022 

2,900 
— 
1,880 
— 
953 
5,733 
32,652 
) 
(301
38,084 
370 
37,714 

$

$

2021
 

2,780
—
1,960
16,200
935
21,875
12,952
(248)

34,579
237
34,342

$

$

During 2022, we issued $6.000 billion aggregate principal amount of senior notes comprised of (i) $1.000 billion 
aggregate principal amount of 3 1/8% senior notes due 2027, (ii) $500 million aggregate principal amount of 3 3/8% 
senior notes due 2029, (iii) $2.000 billion aggregate principal amount of 3 5/8% senior notes due 2032, (iv) $500 million 
aggregate principal amount of 4 3/8% senior notes due 2042 and (v) $2.000 billion aggregate principal amount of 4 5/8% 
senior notes due 2052. We used a portion of the net proceeds to pay down our revolving credit facilities, and we redeemed 
all  $1.250  billion  outstanding  aggregate  principal  amount  of  our  4.75%  senior  notes  due  2023  and  all  $1.250  billion 
outstanding aggregate principal amount of our 5.875% senior notes due 2023. The pretax loss on retirement of debt for 
these two redemptions was $78 million. 

Also during 2022, Standard & Poor's Rating Services (“S&P”) announced it had issued an investment grade rating 
with respect to the issuer credit rating of HCA Healthcare, Inc. and its subsidiaries. S&P's announcement, in conjunction 
with the Moody's Investors Service, Inc. upgrade in 2021, permitted the permanent release of the subsidiary guarantees 
and all collateral securing our senior secured notes. As a result of these releases, our senior secured notes are now classified 
as senior unsecured notes. The subsidiary guarantees and collateral securing our senior secured credit facilities are not 
affected. 

F-22
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

 

 

 

 

 

 
 

 

 
 
 
 
HCA HEALTHCARE, INC.
 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
 

NOTE 8 — LONG-TERM DEBT (continued) 

Senior Secured Credit Facilities And Other Senior Secured Debt 

We have entered into the following senior secured credit facilities: (i) a $4.500 billion asset-based revolving credit 
facility maturing on June 30, 2026 with a borrowing base of 85% of eligible accounts receivable, subject to customary 
reserves and eligibility criteria ($2.900 billion outstanding at December 31, 2022) (the “ABL credit facility”); (ii) a $2.000 
billion senior secured revolving credit facility maturing on June 30, 2026 (none outstanding at December 31, 2022 without 
giving effect to certain outstanding letters of credit); (iii) a $1.388 billion senior secured term loan A facility maturing on 
June 30, 2026; and (iv) a $492 million senior secured term loan B facility maturing on June 30, 2028. We refer to the 
facilities described under (ii) through (iv) above, collectively, as the “cash flow credit facility” and, together with the ABL 
credit  facility,  the  “senior  secured  credit  facilities.”  Finance  leases  and  other  secured  debt  totaled  $953  million  at 
December  31,  2022.  Effective  in  January  2023,  availability  under  our  senior  secured  revolving  credit  facility  was 
increased by $1.500 billion to total $3.500 billion, the senior secured term loan B facility was fully retired and certain 
administrative updates were made to our credit agreements. 

Borrowings under the senior secured credit facilities bear interest at a rate equal to, at our option, either (a) a base 
rate determined by reference to the higher of (1) the federal funds rate plus 0.50% or (2) the prime rate of Bank of America 
or (b) a reference rate (LIBOR historically and the Secured Overnight Financing Rate (SOFR) beginning January 4, 2023) 
for the relevant interest period, plus, in each case, an applicable margin. The applicable margin for borrowings under the 
senior secured credit facilities may be reduced subject to attaining certain leverage ratios. 

The senior secured credit facilities contain a number of covenants that restrict, subject to certain exceptions, our 
(and some or all of our subsidiaries’) ability to incur additional indebtedness, repay subordinated indebtedness, create 
liens  on  assets,  sell  assets,  make  investments,  loans  or  advances,  engage  in  certain  transactions  with  affiliates,  pay 
dividends and distributions, and enter into sale and leaseback transactions. In addition, we are required to satisfy and 
maintain a maximum total leverage ratio covenant under the cash flow credit facility and, in certain situations under the 
ABL credit facility, a minimum interest coverage ratio covenant. 

Senior Unsecured Notes 

Senior unsecured notes consist of (i) $31.791 billion aggregate principal amount of senior notes with maturities 
ranging from 2024 to 2052; (ii) an aggregate principal amount of $125 million medium-term notes maturing 2025; and 
(iii) an aggregate principal amount of $736 million debentures with maturities ranging from 2023 to 2095. 

General Debt Information 

The senior secured credit facilities are fully and unconditionally guaranteed by substantially all existing and future, 
direct and indirect, 100% owned material domestic subsidiaries that are “Unrestricted Subsidiaries” under our Indenture 
(the “1993 Indenture”) dated December 16, 1993 (except for certain special purpose subsidiaries that only guarantee and 
pledge their assets under our ABL credit facility). 

All  obligations  under  the  ABL  credit  facility,  and  the  guarantees  of  those  obligations,  are  secured,  subject  to 
permitted liens and other exceptions, by a first-priority lien on substantially all of the receivables of the borrowers and 
each guarantor under such ABL credit facility (the “Receivables Collateral”). 

All obligations under the cash flow credit facility and the guarantees of such obligations are secured, subject to 

permitted liens and other exceptions, by: 

•	 

•	 

•	 

a first-priority lien on the capital stock owned by HCA Inc., or by any guarantor, in each of their respective 
first-tier subsidiaries; 
a first-priority lien on substantially all present and future assets of HCA Inc. and of each guarantor other 
than (i) “Principal Properties” (as defined in the 1993 Indenture), (ii) certain other real properties and (iii) 
deposit  accounts,  other  bank  or  securities  accounts,  cash,  leaseholds,  motor-vehicles  and  certain  other 
exceptions; and 
a second-priority lien on certain of the Receivables Collateral. 

Maturities  of  long-term  debt  in  years  2024  through  2027  are  $2.382  billion,  $4.656  billion,  $5.316  billion  and 

$2.396 billion, respectively. 

F-23
 

HCA HEALTHCARE, INC. 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 

NOTE 9 — LEASES 

We lease property and equipment under finance and operating leases. For leases with terms greater than 12 months, 
we record the related assets and obligations at the present value of lease payments over the term. Many of our leases 
include rental escalation clauses and renewal options that are factored into our determination of lease payments, when 
appropriate. We do not separate lease and nonlease components of contracts. Generally, we use our estimated incremental 
borrowing rate to discount the lease payments, as most of our leases do not provide a readily determinable implicit interest 
rate. 

The  following  table  presents  our  lease-related  assets  and  liabilities  at  December  31,  2022  and  2021  (dollars  in 

millions): 

Assets:
 

Operating leases 
Finance leases.

Total lease assets

.................. 
..................... 
 ............. 

Liabilities: 
Current: 

Operating leases
Finance leases

 .................. 
...................... 

Noncurrent: 

Operating leases
Finance leases

..... 
 .............
...................... 
 ....... 

Total lease liabilities
Weighted-average remaining 
term: 

Operating leases
Finance leases

 .................. 
...................... 
Weighted-average discount rate: 
 .................. 
...................... 

Operating leases
Finance leases

Balance Sheet Classification 

2022 

2021 

Right-of-use operating lease assets 
Property and equipment 

Other accrued expenses 
Long-term debt due within one year 

Right-of-use operating lease obligations 
Long-term debt 

$ 

$ 

$ 

$ 

2,065
587
2,652 

364 
131 

1,752 
579 
2,826 

$ 

$ 

$ 

$ 

2,113 
637 
2,750 

392 
143 

1,755 
577 
2,867 

10.1 years 
9.5 years 

10.2 years 
10.4 years 

4.4% 
4.5% 

4.4% 
4.4% 

The following table presents certain information related to expenses for finance and operating leases for the years 

ended December 31, 2022, 2021 and 2020 (dollars in millions): 

Finance lease expense: 

Depreciation and amortization
Interest 

 .................................. 
....................................................................... 
........................................................ 
.......................................... 
.............................................. 

Operating leases(1)
Short-term lease expense(1) 
Variable lease expense(1)

2022 

2021 

2020 

$

$

163 $
29
484
329
163
1,168 $

135  $
29 
478 
354 
157 

106 
31 
447 
322 
154 
1,153  $ 1,060 

(1)  Expenses are included in “other operating expenses” in our consolidated income statements. 

The following table presents supplemental cash flow information for the years ended December 31, 2022, 2021 and 

2020 (dollars in millions): 

Cash paid for amounts included in the measurement of lease 
liabilities: 
Operating cash flows for operating leases
Operating cash flows for finance leases
Financing cash flows for finance leases

.............................. 
................................. 
................................. 

2022 

2021 

2020 

$ 473  $
29 
124 

474  $
29 
123 

445 
31 
86 

F-24
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
HCA HEALTHCARE, INC.
 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
 

NOTE 9 — LEASES (continued) 
Maturities of Lease Liabilities 

The  following  table  reconciles  the  undiscounted  minimum  lease  payment  amounts  to  the  operating  and  finance 

lease liabilities recorded on the balance sheet at December 31, 2022 and 2021 (dollars in millions): 

........................................................................... 
Year 1
........................................................................... 
Year 2
........................................................................... 
Year 3
........................................................................... 
Year 4
........................................................................... 
Year 5
..................................................................... 
Thereafter
 ................................... 
Total minimum lease payments
. 
Less: amount of lease payments representing interest
 ....... 
Present value of future minimum lease payments
..................................... 
Less: current lease obligations
 ........................................ 
Long-term lease obligations

$ 

Operating 
Leases 

$ 

2022 

436  $ 
380 
320 
269 
222 
1,122 
2,749 
(633) 
2,116 
(364) 
1,752  $ 

Finance 
Leases 

156 
164 
125 
89 
39 
359 
932 
(222)
710 
(131)
579 

$ 

$ 

2021 

Operating 
Leases 

Finance
Leases

438  $ 
378 
320 
267 
219 
1,148 
2,770 
(623) 
2,147 
(392) 
1,755  $ 

165
126
132
98
70
350
941
(221)
720
(143)
577

NOTE 10 — CONTINGENCIES 

We operate in a highly regulated and litigious industry. As a result, various lawsuits, claims and legal and regulatory 
proceedings have been and can be expected to be instituted or asserted against us. We are also subject to claims and suits 
arising in the ordinary course of business, including claims for personal injuries or wrongful restriction of, or interference 
with, physicians’ staff privileges. In certain of these actions the claimants may seek punitive damages against us, which 
may not be covered by insurance. We are also subject to claims by various taxing authorities for additional taxes and 
related interest and penalties. The resolution of any such lawsuits, claims or legal and regulatory proceedings could have 
a material, adverse effect on our results of operations, financial position or liquidity. 

Government Investigations, Claims and Litigation 

Health care companies are subject to numerous investigations by various governmental agencies. Under the federal 
False Claims Act (“FCA”), private parties have the right to bring qui tam, or “whistleblower,” suits against companies 
that submit false claims for payments to, or improperly retain overpayments from, the government. Some states have 
adopted similar state whistleblower and false claims provisions. Certain of our individual facilities have received, and 
from time to time, other facilities may receive, government inquiries from, and may be subject to investigation by, federal 
and state agencies. Depending on whether the underlying conduct in these or future inquiries or investigations could be 
considered systemic, their resolution could have a material, adverse effect on our results of operations, financial position 
or liquidity. 

Texas operates a state Medicaid program pursuant to a waiver from the Centers for Medicare & Medicaid Services 
under Section 1115 of the Social Security Act (“Program”). The Program includes uncompensated-care pools; payments 
from  these  pools  are  intended  to  defray  the  uncompensated  costs  of  services  provided  by  our  and  other  hospitals  to 
Medicaid eligible or uninsured individuals. Separately, we and other hospitals provide charity care services in several 
communities in the state. In 2018, the Civil Division of the U.S. Department of Justice and the U.S. Attorney’s Office for 
the Southern District of Texas requested information about whether the Program, as operated in Harris County, complied 
with the laws and regulations applicable to provider related donations, and the Company cooperated with that request. On 
May 21, 2019, a qui tam lawsuit asserting violations of the FCA and the Texas Medicaid Fraud Prevention Act related to 
the Program, as operated in Harris County, was unsealed by the U.S. District Court for the Southern District of Texas. 
Both  the  federal  and  state  governments  declined  to  intervene  in  the  qui  tam  lawsuit.  The  Company  believes  that  our 
participation is and has been consistent with the requirements of the Program and is vigorously defending against the 
lawsuit  being  pursued  by  the  relator.  We  cannot  predict  what  effect,  if  any,  the  qui  tam  lawsuit  could  have  on  the 
Company. 

F-25
 


 

 

 

 

 

 

 

 

 
 

 

 
 

 

 
HCA HEALTHCARE, INC.
 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
 

NOTE 11 — CAPITAL STOCK
 

The amended and restated certificate of incorporation authorizes the Company to issue up to 1,800,000,000 shares 
of common stock, and our amended and restated by-laws set the number of directors constituting the board of directors 
of the Company at not less than three members, the exact number to be determined from time to time by resolution adopted 
by the affirmative vote of a majority of the total number of directors then in office. 

Share Repurchase Transactions 

During  January  2023,  January  2022  and  February  2021,  our  Board  of  Directors  authorized  share  repurchase 
programs for up to $3 billion, $8 billion and $6 billion, respectively, of the Company’s outstanding common stock. During 
January 2020 and January 2019, our Board of Directors authorized share repurchase programs for up to $4 billion ($2 
billion for each authorization) of our outstanding common stock. 

During 2022, we repurchased 30.747 million shares of our common stock at an average price of $227.67 per share 
through  market  purchases  pursuant  to  the  February  2021  authorization  (which  was  completed  during  2022)  and  the 
January 2022 authorization. At December 31, 2022, we had $1.586 billion of repurchase authorization available under 
the January 2022 authorization. During 2021, we repurchased 37.812 million shares of our common stock at an average 
price  of  $217.25  per  share  through  market  purchases  pursuant  to  each  of  the  $2  billion  share  repurchase  programs 
authorized during January 2019 and January 2020 (which were completed during 2021) and the $6 billion share repurchase 
program authorized during February 2021. During 2020, we repurchased 3.287 million shares of our common stock at an 
average  price  of  $134.18  per  share  through  market  purchases  pursuant  to  the  $2  billion  share  repurchase  program 
authorized during January 2019. 

NOTE 12 — EMPLOYEE BENEFIT PLANS 

We  maintain  defined  contribution  benefit  plans  that  are  available  to  employees  who  meet  certain  minimum 
requirements. The plans require that we match specified percentages of participant contributions up to certain maximum 
levels (generally, 100% of the first 3% to 9%, depending upon years of vesting service, of compensation deferred by 
participants). Benefits expense under these plans totaled $606 million for 2022, $560 million for 2021 and $552 million 
for 2020. Our matching contributions are funded during the year following the participant contributions. 

We  maintain  the  noncontributory,  nonqualified  Restoration  Plan  to  provide  retirement  benefits  for  eligible 
employees. Eligibility for the Restoration Plan is based upon earning eligible compensation in excess of a base amount 
and attaining 1,000 or more hours of service during the plan year. Company credits to participants’ hypothetical account 
balances  (the  Restoration  Plan  is  not  funded)  depend  upon  participants’  compensation,  years  of  vesting  service, 
hypothetical investment returns (gains or losses) and certain IRS limitations. Benefits expense under this plan was a $27 
million credit for 2022, $38 million expense for 2021 and $35 million expense for 2020. Accrued benefits liabilities under 
this plan totaled $210 million at December 31, 2022 and $258 million at December 31, 2021. 

We maintain a Supplemental Executive Retirement Plan (“SERP”) for certain executives (the SERP is not funded). 
The plan is designed to ensure that upon retirement the participant receives the value of a prescribed life annuity from the 
combination of the SERP and our other benefit plans. Benefits expense under the plan was $22 million for 2022, $22 
million for 2021 and $24 million for 2020. Accrued benefits liabilities under this plan totaled $137 million at December 
31, 2022 and $201 million at December 31, 2021. 

We maintain defined benefit pension plans which resulted from certain hospital acquisitions in prior years. Benefits 
expense under these plans was an $11 million credit for 2022, $4 million expense for 2021, and $8 million expense for 
2020. Accrued benefits under these plans totaled $9 million of assets at December 31, 2022 and $9 million of liabilities 
at December 31, 2021. 

F-26
 

HCA HEALTHCARE, INC.
 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
 

NOTE 13 — SEGMENT AND GEOGRAPHIC INFORMATION
 

We operate in one line of business, which is operating hospitals and related health care entities. We operate in two 
geographically organized groups: the National and American Groups. At December 31, 2022, the National Group included 
96 hospitals located in Alaska, California, Florida, Georgia, Idaho, Indiana, northern Kentucky, Nevada, New Hampshire, 
North Carolina, South Carolina, Utah and Virginia, and the American Group included 79 hospitals located in Colorado, 
Kansas, southern Kentucky, Louisiana, Missouri, Tennessee and Texas. We also operate seven hospitals in England, and 
these facilities are included in the Corporate and other group. 

Adjusted segment EBITDA is defined as income before depreciation and amortization, interest expense, losses and 
gains  on  sales  of  facilities,  losses  on  retirement  of  debt,  income  taxes  and  net  income  attributable  to  noncontrolling 
interests. We use adjusted segment EBITDA as an analytical indicator for purposes of allocating resources to geographic 
areas and assessing their performance. Adjusted segment EBITDA is commonly used as an analytical indicator within the 
health care industry, and also serves as a measure of leverage capacity and debt service ability. Adjusted segment EBITDA 
should not be considered as a measure of financial performance under generally accepted accounting principles, and the 
items  excluded  from  adjusted  segment  EBITDA  are  significant  components  in  understanding  and  assessing  financial 
performance. Because adjusted segment EBITDA is not a measurement determined in accordance with generally accepted 
accounting principles and is thus susceptible to varying calculations, adjusted segment EBITDA, as presented, may not 
be comparable to other similarly titled measures of other companies. The geographic distributions of our revenues, equity 
in  earnings  of  affiliates,  adjusted  segment  EBITDA,  depreciation  and  amortization,  assets  and  goodwill  and  other 
intangible  assets  are  summarized  in  the  following  table  (dollars  in  millions)  and  represent  the  operating  segments  at 
December 31, 2022: 

Revenues: 

National Group
American Group
Corporate and other

.................................... 
.................................. 
............................. 

Equity in earnings of affiliates: 

National Group
American Group
Corporate and other

.................................... 
.................................. 
............................. 

Adjusted segment EBITDA: 

National Group
American Group
Corporate and other

.................................... 
.................................. 
............................. 

Depreciation and amortization: 

National Group
American Group
Corporate and other

.................................... 
.................................. 
............................. 

Adjusted segment EBITDA 

Depreciation and amortization
Interest expense
Losses (gains) on sales of facilities
Losses on retirement of debt

.................... 
............ 
................................... 
..... 
 ............... 
................... 

Income before income taxes 

For the Year Ended December 31, 
2021 

2020 

2022 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

30,350  $ 
26,865 
3,018 
60,233  $ 

29,826  $ 
26,152 
2,774 
58,752  $ 

25,694
23,593
2,246
51,533 

(4) $ 
(43)
2 
(45) $ 

(33) $ 
(53)
(27)
(113) $ 

(28)
(42)
16 
(54)

6,379  $ 
6,055 
(367)
12,067  $ 

7,200  $ 
6,156 
(712)
12,644  $ 

5,532
5,333
(828)
10,037

1,464  $ 
1,219 
286 
2,969  $ 

1,359  $ 
1,183 
311 
2,853  $ 

1,216
1,164
341
2,721

For the Year Ended December 31, 
2021 

2022 
12,067  $ 
2,969 
1,741 
(1,301) 
78 
8,580  $ 

$ 

$ 

12,644  $ 
2,853 
1,566 
(1,620)
12 
9,833  $ 

2020 
10,037
 
2,721
 
1,584
 
7
 
295
 
5,430
 

F-27
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
HCA HEALTHCARE, INC.
 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
 

NOTE 13 — SEGMENT AND GEOGRAPHIC INFORMATION (continued)
 

Assets: 

National Group 
American Group 
Corporate and other 

................................. 
............................... 
.......................... 

2022 

December 31, 
2021 

2020 

$ 

$ 

22,863  $ 
22,216 
7,359 
52,438  $ 

21,205  $ 
21,428 
8,109 
50,742  $ 

18,913 
20,760 
7,817 
47,490 

Goodwill and other intangible assets: 
Balance at December 31, 2019

Balance at December 31, 2020

Acquisitions
Foreign currency translation, amortization and other 

Acquisitions
Foreign currency translation, amortization and other 

............................................ 
..................................................................... 
..... 
............................................ 
..................................................................... 
..... 
............................................ 
..................................................................... 
..... 
............................................ 

Acquisitions
Foreign currency translation, amortization and other 

Balance at December 31, 2022

Balance at December 31, 2021

National 
Group 

American 
Group 

Corporate 
and Other 

Total 

$ 

$ 

1,739  $ 
38 
(2) 
1,775 
735 
(18) 
2,492 
165 
(5) 
2,652  $ 

5,765  $ 
27 
(17) 
5,775 
67 
(10) 
5,832 
91 
(62) 
5,861  $ 

765  $  8,269 
344 
279 
(35) 
(16) 
8,578 
1,028 
1,062 
260 
(100) 
(72) 
9,540 
1,216 
262 
6
(149) 
(82) 
1,140  $  9,653
 

Effective January 1, 2023, we reorganized our operations into three geographically organized groups: the National, 
American and Atlantic Groups. The National Group includes 57 hospitals located in Alaska, California, Idaho, Indiana, 
Kentucky, Nevada, New Hampshire, North Carolina, Tennessee, Utah and Virginia, the American Group includes 57 
hospitals located in Colorado, Central Kansas, Louisiana and Texas, and the Atlantic Group includes 61 hospitals located 
in  Florida,  Georgia,  Northern  Kansas,  Missouri  and  South  Carolina.  The  seven  hospitals  we  operate  in  England  will 
remain  in  the  Corporate  and  other  group.  Operating  segment  reporting  with  this  reorganized  group  structure  will  be 
provided in periodic filings starting with the first quarter of 2023, with retrospective presentation of all periods presented. 

F-28
 

HCA HEALTHCARE, INC.
 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
 

NOTE 14 — OTHER COMPREHENSIVE LOSS 

The components of accumulated other comprehensive loss are as follows (dollars in millions): 

Balances at December 31, 2019......................................  $ 
Unrealized gains on available-for-sale securities, net of 
$3 of income taxes ................................................. 

Foreign currency translation adjustments, net of $6 of 

income taxes

.......................................................... 
 .... 

Defined benefit plans, net of $16 income tax benefit
Change in fair value of derivative instruments, net of 

$15  income tax benefit

 ........................................... 

Expense reclassified into operations from other 
comprehensive income, net of $6 and $5 of 
income tax benefits, respectively

 ............................. 
...................................... 

Balances at December 31, 2020

Unrealized losses on available-for-sale securities, net 

of $3 income tax benefit

.......................................... 

Foreign currency translation adjustments, net of $2 

income tax benefit

Defined benefit plans, net of $20 of income taxes
Change in fair value of derivative instruments
Expense reclassified into operations from other 

 .................................................. 
 ........ 
 ............. 

comprehensive income, net of $7 and $8 income 
tax benefits, respectively
Balances at December 31, 2021

......................................... 
...................................... 

Unrealized losses on available-for-sale securities, net 

of $12 income tax benefit

........................................ 

Foreign currency translation adjustments, net of $16 

income tax benefit

 .................................................. 
 ........ 

Defined benefit plans, net of $11 of income taxes
Change in fair value of derivative instruments, net of 
 ...............................................

$1 of  income taxes

. 

Expense reclassified into operations from other 
comprehensive income, net of none, $2 and $1 
income tax benefits, respectively 

............................. 
...................................... 

Balances at December 31, 2022

Unrealized 
Gains 
(Losses) on 
Available-
for-Sale 
Securities 

Foreign 
Currency 
Translation 
Adjustments 

Defined 
Benefit 
Plans 

14  $ 

(283)  $ 

(187)  $ 

Change 
in Fair 
Value of 
Derivative 
Instruments 

Total 
(4)  $  (460) 

11 

25 

(13) 

12 

(43) 

12 

(55) 

(271) 

22 
(220) 

(7) 

(278) 

(95) 

67 

21 
(132) 

38 

11 

12 
(55) 

(51) 

41 
(502) 

(13) 

(7) 
67 
1 

(51) 

19 
(36) 

1 

29 
(6) 

50 
(404) 

(43) 

(95) 
38 

5 

5 

$ 

1 
(30)  $ 

(373)  $ 

7 
(87)  $ 

9 
1 
—  $  (490) 

F-29
 

 
 
HCA HEALTHCARE, INC.
 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
 

NOTE 15 — ACCRUED EXPENSES 

A summary of other accrued expenses at December 31 follows (dollars in millions): 

2022 

2021
 

$ 

515  $ 
612 
364 
371 
402 
81 
1,236 

508
 
549
 
392
 
361
 
353
 
79
 
1,080
 
$  3,581  $  3,322 

Professional liability risks
Defined contribution benefit plans
Right-of-use operating leases
Taxes other than income 
Interest
Government stimulus refund liability 
Other 

.............................. 
................. 
......................... 
................................ 
............................................................ 
............ 
.............................................................. 

F-30
 

EXHIBIT 31.1
 

I, Samuel N. Hazen, certify that: 

1. I have reviewed this annual report on Form 10-K of HCA Healthcare, Inc.; 

CERTIFICATIONS 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a 
material fact necessary to make the statements made, in light of the circumstances under which such statements were 
made, not misleading with respect to the period covered by this report; 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly 
present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and 
for, the periods presented in this report; 

4.  The  Registrant’s  other  certifying  officer(s)  and  I  are  responsible  for  establishing  and  maintaining  disclosure 
controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial 
reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have: 

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to 
be  designed  under  our  supervision,  to  ensure  that  material  information  relating  to  the  Registrant,  including  its 
consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in 
which this report is being prepared; 

(b)  Designed  such  internal  control  over  financial  reporting,  or  caused  such  internal  control  over  financial 
reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial 
reporting and the preparation of financial statements for external purposes in accordance with generally accepted 
accounting principles; 

(c) Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this 
report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period 
covered by this report based on such evaluation; and 

(d)  Disclosed  in  this  report  any  change  in  the  Registrant’s  internal  control  over  financial  reporting  that 
occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an 
annual  report)  that  has  materially  affected,  or  is  reasonably  likely  to  materially  affect,  the  Registrant’s  internal 
control over financial reporting; and 

5. The Registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal 
control over financial reporting, to the Registrant’s auditors and the audit and compliance committee of the Registrant’s 
board of directors (or persons performing the equivalent functions): 

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over 
financial  reporting  which  are  reasonably  likely  to  adversely  affect  the  Registrant’s  ability  to  record,  process, 
summarize and report financial information; and 

(b) Any fraud, whether or not material, that involves management or other employees who have a significant 

role in the Registrant’s internal control over financial reporting. 

Date: February 17, 2023 

By: /S/ SAMUEL N. HAZEN 
Samuel N. Hazen 
Chief Executive Officer 

EXHIBIT 31.2
 

I, William B. Rutherford, certify that: 

1. I have reviewed this annual report on Form 10-K of HCA Healthcare, Inc.; 

CERTIFICATIONS 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a 
material fact necessary to make the statements made, in light of the circumstances under which such statements were 
made, not misleading with respect to the period covered by this report; 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly 
present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and 
for, the periods presented in this report; 

4.  The  Registrant’s  other  certifying  officer(s)  and  I  are  responsible  for  establishing  and  maintaining  disclosure 
controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial 
reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have: 

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to 
be  designed  under  our  supervision,  to  ensure  that  material  information  relating  to  the  Registrant,  including  its 
consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in 
which this report is being prepared; 

(b)  Designed  such  internal  control  over  financial  reporting,  or  caused  such  internal  control  over  financial 
reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial 
reporting and the preparation of financial statements for external purposes in accordance with generally accepted 
accounting principles; 

(c) Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this 
report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period 
covered by this report based on such evaluation; and 

(d)  Disclosed  in  this  report  any  change  in  the  Registrant’s  internal  control  over  financial  reporting  that 
occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an 
annual  report)  that  has  materially  affected,  or  is  reasonably  likely  to  materially  affect,  the  Registrant’s  internal 
control over financial reporting; and 

5. The Registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal 
control over financial reporting, to the Registrant’s auditors and the audit and compliance committee of the Registrant’s 
board of directors (or persons performing the equivalent functions): 

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over 
financial  reporting  which  are  reasonably  likely  to  adversely  affect  the  Registrant’s  ability  to  record,  process, 
summarize and report financial information; and 

(b) Any fraud, whether or not material, that involves management or other employees who have a significant 

role in the Registrant’s internal control over financial reporting. 

Date: February 17, 2023 

By:  /S/ WILLIAM B. RUTHERFORD 
William B. Rutherford 
Executive Vice President and Chief Financial 
Officer 

EXHIBIT 32
 

CERTIFICATION PURSUANT TO
 
18 U.S.C. SECTION 1350,
 
AS ADOPTED PURSUANT TO
 
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
 

In connection with the Annual Report of HCA Healthcare, Inc. (the “Company”) on Form 10-K for the year ended 
December 31, 2022, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the 
undersigned certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act 
of 2002, that: 

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 

1934; and 

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and 

results of operations of the Company. 

February 17, 2023 

February 17, 2023 

By:  /S/ SAMUEL N. HAZEN 
Samuel N. Hazen 
Chief Executive Officer 

By:  /S/ WILLIAM B. RUTHERFORD 
William B. Rutherford 
Executive Vice President and Chief Financial 
Officer 

This document contains forward-looking statements within the meaning of the federal securities laws. 

These forward-looking statements are based on our current plans and expectations and are subject 

to a number of known and unknown uncertainties and risks, including those set forth in our earnings 

releases and reports filed with the Securities and Exchange Commission. 

All references to “Company,” “HCA,” “HCA Healthcare,” “we,” and “us” as used herein refer to 

HCA Healthcare, Inc. and its affiliates. 

 
 
 
 
 
Thomas F. Frist Ill 
Chairman 
HCA Healthcare 

Founder and 
Managing Principal
Frist Capital 

Samuel N. Hazen 
Chief Executive Officer 
HCA Healthcare 

Meg G. Crofton
Retired President 
Parks and Resorts Operations
The Walt Disney Company 

Robert J. Dennis 
Retired Chairman and 
Chief Executive Officer 
Genesco Inc. 

Nancy-Ann DeParle
Co-founder and 
Managing Partner
Consonance Capital
Partners 

William R. Frist 
Principal
Frist Capital 

Charles O. Holliday, Jr
(Not standing for re-election)
Retired Chairman and 
Chief Executive Officer 
DuPont 

Directors 

Hugh F. Johnston
Vice Chairman and 
Chief Financial Officer 
PepsiCo, Inc. 

Michael W. Michelson 
Retired Member 
KKR Management LLC 

Wayne J. Riley, M.D., M.B.A.
President of SUNY 
Downstate Health 
Sciences University 

Andrea B. Smith 
Retired Chief 
Administrative Officer 
Bank of America Corporation 

Executive Officers 

Samuel N. Hazen 
Chief Executive Officer  
and Director 

Erol R. Akdamar  
President - American Group 

Jennifer L. Berres 
Senior  Vice President and   
Chief Human Resources Officer 

Phillip G. Billington 
Senior  Vice President –  
Internal Audit Services 

Jeff E. Cohen 
Senior  Vice President –   
Government Relations 

Michael S. Cuffe, M.D.
Executive Vice President and   
Chief Clinical Officer 

Jon M. Foster  
Executive Vice President and  
Chief Operating Officer 

Richard A. Hammett  
President – Atlantic Group 

Michael A. Marks  
Senior  Vice President - Finance 

Michael R. McAlevey
Senior  Vice President and   
Chief Legal Officer 

Timothy M. McManus 
President – National Group  

Sammie S. Mosier 
Senior  Vice President and  
 Chief Nurse Executive 

P. Martin Paslick 
Senior  Vice President and   
Chief Information Officer 

Deborah M. Reiner  
Senior  Vice President –   
Marketing and 
Communications 

William B. Rutherford 
Executive Vice President   
and Chief Financial Officer 

Joseph A. Sowell, III
Senior  Vice President and  
 Chief Development Officer 

Kathryn A. Torres 
Senior  Vice President –  
Payer Contracting 
and Alignment 

Kathleen M. Whalen 
Senior  Vice President and  
 Chief Ethics and   
Compliance Officer 

Christopher  F. Wyatt
Senior Vice President   
and Controller 

 
 
 
 
 
 
  
 
 
 
 
  
 
  
  
 
  
 
 
  
  
  
 
 
 
 
 
 
 
 
 
 
 
Corporate Information 

Transfer Agent and Registrar
EQ Shareowner Services
P.O. Box 64874 
St. Paul, Minnesota 55164-0874
Toll free: 800-468-9716 

Certified/Overnight Mail
EQ Shareowner Services
1110 Centre Pointe Curve, Suite 101
Mendota Heights, Minnesota 55120 

Independent Registered 
Public Accounting Firm
Ernst & Young LLP
Nashville, Tennessee 

Corporate Headquarters
One Park Plaza 
Nashville, Tennessee 37203
615-344-9551 

Form 10-K 
The Company has filed an annual report on Form 10-K for the year ended 
December 31, 2022 with the United States Securities and Exchange Commission 
(SEC). Shareholders may obtain a copy of this report, without charge, by writing:

    Investor Relations, HCA Healthcare, Inc., One Park Plaza, Nashville, TN 37203
    or by  visiting the Company’s website at www.HCAhealthcare.com. 

Common Stock and Dividend Information 
The Common Stock of HCA Healthcare, Inc. is listed on the New York Stock
Exchange (NYSE) under the symbol “HCA”. On February 24, 2023, the Company
had approximately 400 shareholders of record. On January 26, 2023, the 
Company’s Board of Directors declared a quarterly dividend of $0.60 per share
on our common stock payable on March 31, 2023 to shareholders of record on 
March 17, 2023. Future declarations of quarterly dividends and the establishment
of future record and payment dates are subject to the final determination of the
Company’s Board of Directors. 

Annual Meeting of Shareholders
The annual meeting of shareholders will be held on April 19, 2023,
at 2:00 pm local time in a virtual meeting format only, via live webcast at
www.virtualshareholdermeeting.com/HCA2023. Shareholders of record as
of February 24, 2023 are invited to attend the virtual meeting. 

HCA Healthcare 
One Park Plaza 
Nashville, Tennessee 37203
www.HCAhealthcare.com