HCA Investor Day

1
Mark Kimbrough VP, Investor Relations
CIBC/Nov 2004.
2004
HCA
2
This press release contains forward-looking
statements based on current management
expectations. Those forward-looking statements
include all statements regarding our estimated
results of operations for future periods and all
statements other than those made solely with
respect to historical fact. Numerous risks,
uncertainties and other factors may cause actual
results to differ materially from those expressed
in any forward-looking statements. These factors
include, but are not limited to (i) the number of
shares tendered and the price at which the
Company determines to purchase shares in the
tender offer, (ii) availability and cost of
adequate financing on terms acceptable to the
Company, including the ability of the Company to
successfully refinance its existing credit
facility and to borrow approximately 2.5 billion
pursuant to the terms and conditions of the
commitment letters and on terms satisfactory to
us, (iii) increases in the amount and risk of
collectability of uninsured accounts and
deductibles and co-pay amounts for insured
accounts, (iv) the ability to achieve operating
and financial targets and achieve expected levels
of patient volumes and control the costs of
providing services, (v) the highly competitive
nature of the health care business, (vi) the
continuing impact of the hurricanes on the
Companys Florida facilities and the ability to
obtain recoveries under the Companys insurance
policies, (vii) the efforts of insurers, health
care providers and others to contain health care
costs, (viii) possible changes in the Medicare
and Medicaid programs that may impact
reimbursements to health care providers and
insurers, (ix) the ability to attract and retain
qualified management and personnel, including
affiliated physicians, nurses and medical support
personnel, (x) potential liabilities and other
claims that may be asserted against the Company,
(xi) fluctuations in the market value of the
Companys common stock, (xii) the impact of the
Companys charity care and self-pay discounting
policy changes, (xiii) changes in accounting
practices, (xiv) changes in general economic
conditions, (xv) future divestitures which may
result in charges, (xvi) changes in revenue mix
and the ability to enter into and renew managed
care provider arrangements on acceptable terms,
(xvii) the availability and terms of capital to
fund the expansion of the Companys business,
(xviii) changes in business strategy or
development plans, (xix) delays in receiving
payments for services provided, (xx) the possible
enactment of Federal or state health care reform,
(xxi) the outcome of pending and any future tax
audits and litigation associated with the
Companys tax positions, (xxii) the outcome of
the Companys continuing efforts to monitor,
maintain and comply with appropriate laws,
regulations, policies and procedures and the
Companys corporate integrity agreement with the
government, (xxiii) changes in Federal, state or
local regulations affecting the health care
industry, (xxiv) the ability to successfully
integrate the operations of Health Midwest, (xxv)
the ability to develop and implement the payroll
and human resources information system within the
expected time and cost projections and, upon
implementation, to realize the expected benefits
and efficiencies, and (xxvi) other risk factors
detailed in the Companys filings with the SEC.
Many of the factors that will determine the
Companys future results are beyond the ability
of the Company to control or predict. In light
of the significant uncertainties inherent in the
forward-looking statements contained herein,
readers should not place undue reliance on
forward-looking statements, which reflect
managements views only as of the date hereof.
The Company undertakes no obligation to revise or
update any forward-looking statements, or to make
any other forward-looking statements, whether as
a result of new information, future events or
otherwise.   All references to Company and
HCA as used throughout this document refer to
HCA Inc. and its affiliates.
CIBC/Nov 2004
2004
HCA
2
3
HCA is located in 16 of 20 Fastest Growing
Large US Cities
Dallas/Ft. Worth 12

• Generally 25-40 Market Share
• 40 of facilities in Texas Florida

Denver 9
Kansas City 5
U.K.
Las Vegas 22
Nashville 8
Switzerland
Richmond 8
Austin 18
Southern California 9
Panhandle 10


Palm Beach 11
Percent Growth in Market Population 2000-2005
Tampa Bay 8
Houston 10
Dade 8
Compared to the National Average of 4.5
4
HCA Capital Expenditures
Billions
2004E 1.6
2000 1.2
2001 1.4
2002 1.7
2003 1.8
Expansions
Open Heart,
Imaging Cardiology, Oncology, etc.
54 Facilities with Surgery and/or ICU/CCU
expansions
1,565 New Beds
Four New Facilities 378 Beds
Distribution of Capital Dollars 2002 and Beyond
5
HCA
Capital Regional Medical Center
Tallahassee, FL (100M) 200 beds Opened August
2003
6
HCA
Stonecrest Medical Center
Smyrna, TN (96M) 75 beds Opened December 2004
7
Inpatient Admissions and Outpatient Visits 1980
- 2002
Inpatient Admissions
Outpatient Visits (millions)
Admissions (millions)
Outpatient Visits
Source AHA Annual Survey, 1980 - 2002
8
Socio-DemographicsAge WaveDriving Healthcare
Utilization
Acute Care Utilization Index (2003100)
Baby Boomer Impact Accelerates
9
HCA Admission Trends 2001 to 3Q 2004Same Facility
HCA Growing Medicare Market Share Growth in
Medicare Admissions 1998-2001

2Q includes same-market admissions
10
Admissions Growth Sept YTD 2004
Top 15 Markets 4.9 24,605 Admissions
Top 15/Bottom 15 Markets Admissions Growth
Brownsville/Valley 12.0
Bubble Size determined by total admissions
Nashville 10.5
Northwest Georgia 7.6
10.0
Atlanta 8.4
Jacksonville 6.6
Las Vegas 6.1
Lafayette 6.9
Austin 4.9
Chattanooga 6.8
Tampa Bay 3.6
Panhandle 4.4
Ft. Myers 3.6
Dade 3.4
Growth
Average Change 1.3 Same Facility
Palm Beach 3.0
D/FW 1.0
New Orleans -0.2
Orlando -0.7
Oklahoma -1.0
Broward -0.4
0.0
Middle GA -1.2
Houston -2.9
Cent. LA 1.8
S. Carolina -2.0
Switzerland -2.6
Bottom 15 Markets -3.3 -9,174 Admissions
Northwest -3.5
Treasure Coast -2.4
W. VA -2.7
Indiana -5.6
So. California -6.8
Delta Una. 9.4
-10.0
-1
0
1
2
3
4
5
6
7
8
9
Same Market
1 Denver is a non-consolidating JV Market
of Total Admissions
11
Inpatient Surgery Trends Improving2001 to 3rd
Quarter 2004 - Same Facility
1
1 Includes Kansas City facilities.
12
Enhanced Outpatient Services Focus
O/P Comprised of Three Business Lines
2003 of HCA Net Revenue
As a of Outpatient Surgeries
70
Hospital Based
Outpatient Surgeries
15.3
ASC Based
30
13
2004 Managed Care Contracting
6,844 Facility Level Active Contracts
2005 Contract Pricing Timeline
1Q04
2Q04
3Q04
4Q04
Pre-2004
2005 Cumulative
Anticipated Completion Dates
Net Revenue per Adjusted Admission Managed Care
Other Discounted
16
11.1
9.0
9.9
15.0
13.3
13.0
11.4
11.1
10.5
9.6
9.2
7.3
7.0
6.6
0
3Q 04
1Q 02
2Q 02
3Q 02
4Q 02
1Q 03
2Q 03
3Q 03
4Q 03
1Q 04
2Q 04
100 of 2004 and 75 of 2005 contracts completed.
14
Medicare Reimbursement Improves Oct. 1, 2004with
Outlier Threshold Change and Full Market Basket
Update

• Medicare outlier threshold of 16,350 (Oct 00),
  21,025 (Oct 01),
• 33,560 (Oct 02), 30,150 (Oct 03) and 25,800
  (Oct 04)
• Law changed for 2003 to base outlier
  cost-to-charge ratio on latest
• filed cost reports versus latest settled cost
  reports.

15
Labor Cost
Wage Rate Same Facility - Change from PY
2001
2002
2003
2004
1
1Q 01
2Q 01
3Q 01
4Q 01
1Q 02
2Q 02
3Q 02
4Q 02
1Q 03
2Q 03
3Q 03
4Q 03
1Q 04
2Q 04
3Q 04
1 Includes Kansas City facilities.
Contract Labor Reduction /Adj. Patient Day
15 vs. Q103
25 vs. Q103
29 vs. Q103
33 vs. Q103
29 vs. Q103
33 vs. Q103
Eastern and Western Consolidated Operations
16
Bad Debt Impact on Operating Expenses per
Adjusted Admission

2002
2003
2004
2001
15
9.4
7.4
8.5
7.0
Sept. YTD
10.8
10.4
10.2
10
8.9
8.8
8.5
8.0
8.0
7.6
6.6
7.6
9.3
7.0
8.1
7.8
6.0
7.01
7.4
5.4
7.5
5.5
Operating Expenses/AA Percent Change from Prior
Year
5.8
6.2
5
6.0
5.5
5.6
5.3
5.5
5.2
5.11
4.7
3.8
6.7
6.0
6.4
6.5
0
Sept. YTD
1Q 01
2Q 01
3Q 01
4Q 01
1Q 02
2Q 02
3Q 02
4Q 02
1Q 03
2Q 03
3Q 03
4Q 03
1Q 04
2Q 04
3Q 04
Same Facility Percent Change from Prior Year
Operating Expense/AA (Adj. For Bad Debt)
Operating Expense/AA
1 Adjusted for 26M in net hurricane operating
expense impact during the 3rd quarter
17
The Genesis of the Bad Debt/Charity Care Issue
HCA is in 14 of the 20 highest uninsured states,
with 72 of its hospitals in those states
17.0
13.1
13.1
22.2
21.2
15.9
National Average 15.2 1
19.3
19.2
18.1
15.1
15.4
15.4
16.4
23.5
20.3
14.6
23.5
HCA Weighted Average 22.6 2
16.7
19.7
29.7
25.6
22.8
22.2
gt20 Uninsured
15-20 Uninsured
lt15 Uninsured
1 U.S. Census Bureau Health Insurance
Coverage in the United States 2002. 2 Kaiser
Commission Health Ins. Coverage of Nonelderly
Adults 2001-2002.
18
Bad Debts CharityQuarterly Trending
Bad Debts Charity
916
837
912
893
795
1B
786
610
587
567
514
491
0
Bad Debts
Charity
Bad Debts
19
HCA Reduces Malpractice Reserves by 59 Million
in 2Q 2004
HCA Large Claims Declining
20
HCA is Investing Significantly in Programs for
Patient Safety and Improved Patient Outcomes
? E MAR Medication Error Prevention ? E POM
Physician Order Entry ? 100 Participation in
CMS Quality Reporting Initiative ? Member of NQF
and Leapfrog ? Cardiovascular, OB and Emergency
Department Initiatives
21
Accounts Receivable IndicatorsCash Collections
Adj. Net Revenue / Days in A/R
22
Strong Cash Flow Trends Provide Opportunities
Net Cash Provided by Operating Activities Dollars
in Millions
Capital Reinvestment 1.6B in 2004
Balance Sheet 53 _at_ 9/30/04 Debt-to-debt and
total equity ratio
Share Repurchase Program 7.5B in 8 years
New Dividend Policy 250mm annually
Excluding settlements with government agencies
and investigation related costs.
23
October 13, 2004
HCA announces 2.5 billion share repurchase in
the form of a modified Dutch Auction tender.
Offer to purchase up to 61 million shares at a
price between 35 to 41 per share.
24
Employee Satisfaction at Record Levels
Turnover Rate
Satisfaction Score
25
In Summary We Have.
Great Assets
Excellent Investment Opportunities
Strong Cash Flows
Excellent Long-Term Earnings Growth Outlook
A prudent financial strategy that provides for a
strong balance sheet and return of cash to
shareholders through share repurchase and/or
dividends