HCA Healthcare (HCA) – Get Report was rising Friday after the hospital operator provided third-quarter revenue guidance that exceeded Wall Street’s expectations.
Shares of the Nashville-based company were up 2.5% to $135.10.
HCA said it expects revenue to roughly total $13.3 billion, up from $12.69 billion a year ago, and ahead of FactSet’s call for revenue to be flat with a year earlier.
The company said it expects income before income taxes to come to $950 million, down from $979 million a year ago.
This reflects a reversal of $822 million in government stimulus income recorded in the second quarter of 2020 related to general distribution funds under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
HCA said it will return, or repay early, about $6 billion of government assistance funds received as part of the CARES Act.
The company said had taken a conservative approach during the early days of the pandemic, which “included a number of actions to meet the operational and financial challenges this global health crisis was expected to present.”
“As the initial immediacy of the emergency has passed, and with more information, and more experience managing our operations during the pandemic, we believe returning these taxpayer dollars is appropriate and the socially responsible thing to do,” Sam Hazen, CEO, said in a statement.
HCA Healthcare is able to return, or repay early, all of its share of Provider Relief Fund distributions of about $1.6 billion and roughly $4.4 billion in Medicare accelerated payments.
Hazen added that “we greatly appreciate the CARES Act funding and the policymakers who fought hard to ensure hospitals would have the essential resources during the pandemic.”
HCA Healthcare said it expects to report full results Oct. 26.