Anna Barsanti

Anna Barsanti asked about current observations regarding health insurance exchange volumes, particularly concerning members who haven't paid premiums, and Universal Health Services' visibility into potential bad debt.

Answer

Steve Filton, Executive Vice President and Chief Financial Officer, reiterated the assumption of a 25%-30% decline in exchange volumes based on public projections, noting that early reporting might be understated as payers only report declines after missed premiums. He acknowledged the increased risk of non-reimbursement due to unpaid premiums but believes current estimates account for this, though more precise data will emerge in the coming months.

Anna Barsanti asked about current exchange volume trends, given potential unpaid premiums, and the company's visibility on bad debt and the accuracy of early reporting on volume losses.

Answer

CFO Steve Filton confirmed an assumed 25-30% decline in exchange volumes based on public projections. He noted that early reporting might be understated as payers only report declines after missed premiums, increasing bad debt risk. The company believes these risks are accounted for in their assumptions, but more precise data will be available in the coming months.

Anna Barsanti, on for Justin Lake, asked about the potential impact of site-neutral payments, whether it alters HCA's outpatient ASC strategy, and for the same-store ASC revenue growth in the quarter.

Answer

CFO Mike Marks stated that HCA opposes site-neutral cuts and has not seen a bill with enough detail to size the impact, though he noted the impact would vary depending on the scope of procedures included. He reported ASC revenue growth was 5% to 6%. CEO Sam Hazen added that site-neutral policy would not cause HCA to rethink its outpatient network strategy.