HCAEdge

1
Vic Campbell Senior Vice President Milton
Johnson Executive Vice President and Chief
Financial Officer Mark Kimbrough VP,
Investor Relations
2
Cautionary Note Regarding Forward-looking
Statements
HCAs management will be making some
forward-looking statements during todays
presentation. Those forward-looking statements
are based on managements current expectations
and are subject to risks and uncertainties that
may cause those forward looking statements to be
materially incorrect. Certain of those risks
and uncertainties are discussed in HCAs filings
with the Securities and Exchange Commission,
including the companys report on Form 10-K and
its quarterly reports on form 10-Q, to which you
are referred. Management cautions you not to
rely on, and makes no promises to update any of
the forward looking statements.
3
Collective Knowledge

• 190,000 employees
• 189 hospitals
• 92 surgery centers
• 14 million patients treated annually
• 5.2 million emergency room visits annually

4
What Will Drive HCAs Future Success

• Located in Large, Growth Markets and Aging
  Population

• Capital Investments

• Quality Initiatives

• Patient Safety

• Bad Debt Trends Improving/Encouraging

• Prudent use of Companys Strong Cash Flows

5
HCA Hospitals Locatedin Growth Markets

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

Kansas City 5
Denver 9
U.K.
Las Vegas 22
Switzerland
Richmond 8
Dallas/Ft. Worth 12
Nashville 8
Southern California 9
Panhandle 10
Palm Beach 11
Houston 10
Dade 8
Percent Growth in Market Population
2000-2005 Compared to the National Average of 4.5
Tampa Bay 8
Austin 18
6
Improving unemployment rate in mid-2003 implies
mid-2005 rebound in admissions
4
4
3
5
2
1
6
0
7
-1
Inpatient Admissions Growth
Unemployment Rate
-2
8
2 Year Lagged
-3
Correlation
-4
2
9
- R
of 0.74 since 1980
2
- R
of 0.66 since 1978
-5
2
- R
of 0.48 since 1970
10
-6
1950
1955
1960
1965
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004YTD
Unemployment Rate
Inpatient Admissions Growth
Source American Hospital Association, Bureau of
Labor Statistics and Goldman Sachs Research
estimates.
7
Socio-DemographicsAge WaveDriving Healthcare
Utilization
Acute Care Utilization Index (2003100)
Baby Boomer Impact Accelerates
8
What Will Drive HCAs Future Success

• Capital Investments

9
Investments in Our Facilities

• 7.6 billion in existing facilities since 2000
  (1.5 billion 04)
• 36,000 per bed annually
• 130 million in information technology
• 300 million in patient safety technologies since
  97

10
Distribution of Capital Dollars Remains
Unchanged 2003 and beyond
Ongoing Projects in Capital Plan
Three Facilities 511 Beds
33 ER Expansions
Open Heart, Cardiology Oncology, etc.
Three New Facilities 310 Beds
56 Facilities with Surgery and/or
ICU/CCU expansions
1,611 New Beds
Represents 4.2B of projects
11
Outpatient Strategy Progressing
Transactions totaling 62 million completed 2030
imaging center and 8-10 surgery center
transactions expected to be completed over the
next 12 months
Total I Management, LLC Tampa Bay Area/5 imaging
centers
12
What Will Drive HCAs Future Success

• Quality Initiatives

13
Our Recognition for Quality
14

• Satisfied Physicians
• HCA physicians rank our facilities higher than
  that of other hospitals across the country

Source Gallup Satisfaction Surveys 2003
15
Our Commitment to Quality

• HCA Quality Review System (QRS)
• An internal process that provides ongoing
  assurance that patient care servicesin HCA
  hospitals meet defined quality standards.

16
Our Commitment to Quality

• QRS surveys analyze clinical performance using
• JCAHO survey scores
• Professional liability risk exposure
• Patient, employee, and physician satisfaction
  results

17
Our Commitment to Quality
18
What Will Drive HCAs Future Success

• Patient Safety

19
Our Commitment to Patient Safety

• HCA Has
• Invested Over
• 300 Million In
• Patient Safety
• Technologies
• Since 97

20
Our Commitment to Patient Safety

• eMAR Barcoding
• Ensures the five Rs right patient, right
  medication, right dose, right time, right route
  of administration
• The benefit to our patients
• Prevents the error patients fear most getting
  the wrong medication

21
Our Commitment to Patient Safety

• Electronic Provider Order Management (ePOM)
• Allows physicians to input prescriptions and
  patient orders electronically and transmit them
  directly to a pharmacy or hospital department
• The benefit to our patients
• Eliminates the risk of a pharmacist or clinician
  misreading a physicians handwriting

22
Our Commitment to Patient Safety

• ePOM - Safety Alerts
• Drug allergies
• Dose warnings
• Duplicate orders
• Abnormal results
• Severe drug interactions
• Common test interactions
• Age limits for certain drugs

23
Addressing Medication Errors (ADES)
eMAR Barcoding
ePOM
Bates DW et al. Incidence of adverse drug
events, potential adverse drug events. JAMA
199527429-34.
24
What Will Drive HCAs Future Success

• Bad Debt Trends Improving/Encouraging

25
Bad Debt Trends Encouraging
Bad Debts Charity
5B
916
912
1B
893
3,595
874
837
795
786
3,028
610
587
567
514
491
2,160
0
0
Charity Bad Debt
Bad Debts
As reported
BD of Net Revenue BD Charity
of Gross Revenue
26
Growth in Uninsured Volume Slowing
1999
2000
2001
2002
2003
2004
Uninsured Admissions Same Facility of Total
Admissions
25,000
2004 9.7
19,532
18,929
18,947
18,416
17,961
17,944
17,136
16,087
16,473
16,111
15,782
14,722
Uninsured Admissions Same Facility
13.7 vs. PY
7.1 vs. PY
11.5 vs. PY
15.2 vs. PY
3.7 vs. PY
7.5 vs. PY
2.4 vs. PY
0
1Q02
2Q02
3Q02
4Q02
1Q03
2Q03
3Q03
4Q03
1Q04
2Q04
3Q04
4Q04
25
20.3
20.4
Uninsured ER Visits Same Facility of Total ER
Visits
19.6
18.2
17.5
17.7
20.8
19.5
19.3
18.3
17.1
17.0
10
4Q 01
1Q02
2Q02
3Q02
4Q02
1Q03
2Q03
3Q03
4Q03
1Q04
2Q04
3Q04
4Q04
1Q 99
2Q 99
3Q 99
4Q 99
1Q 00
2Q 00
3Q 00
4Q 00
1Q 01
2Q 01
3Q 01
27
Revisions Made to the Uninsured Policy

• Provide a discount to all uninsured non-elective
  patients similar to managed care rates.
• Continue to attempt to qualify uninsured
  patients for Medicaid and other state and
  federal programs.
• Charity care will continue to be provided for
  those uninsured patients with income levels at
  or below 200 percent of the Federal Poverty
  Level.
• The Company estimates that there will be no
  material impact on earnings.

28
What Will Drive HCAs Future Success

• Prudent use of Companys Strong Cash Flows

29
Cash flow in 2004 Remains Positive
Net Cash Provided by Operating Activities1 Dollars
in Millions
8.0
Excluding settlements with government agencies
and investigation related costs.
1 1999-2003 are non-GAAP numbers
30
Avg Share Price
40.07
Share Repurchase
3.1B 77.4 Shares
1
2004
35.76
45.53
1.1B 31.1M Shares
36.88
2003
2002
282M 6.2M Shares
28.65
706M 19.2M Shares
2001
24.61
1.3B 43.5M Shares
2000
1.4B 55.6M Shares
22.68
1.4B 55.6M Shares
1999
33.59
930M 41M Shares
930M 41M Shares
1998
1.3B 37.9M Shares
1.3B 37.9M Shares
1997
2 Includes other activities affecting share
balance (stock option exercises, restricted
grants, and ESPP activity).
1 2004 purchases through 12/31/04
31
In Summary We Have.
Great Assets
Excellent Investment Opportunities
Strong Cash Flows
Excellent Long-Term Earnings Growth Outlook
Prudent Financial Strategy Focused on Shareholder
Value