Vic Campbell

1
Vic Campbell Senior Vice President Milton
Johnson SVP and Controller Mark Kimbrough VP,
Investor Relations
Banc of America May 2004
2
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
3
Health Care Market Outlook Strong
National Health Care Spending 1990 2010
U.S. Healthcare Expenditures ( Billions)
12.0
13.4
13.3
14.8
15.4
15.9
16.4
17.1
National Health Care Expenditures as a Share of
Total GDP
Will the U.S. economy shift 2.3 of GDP to health
care services over the next seven years?
Source U.S. Centers for Medicare and Medicaid
ServicesNational Health Expenditure Projections,
2003
4
Inpatient Admissions and Outpatient Visits 1980
- 2002
Inpatient Admissions
Outpatient Visits (millions)
Admissions (millions)
Outpatient Visits
Source AHA Annual Survey, 1980 - 2002
5
HCA Admission Trends 2001 to 1Q 2004Same Facility
15.4
HCA Growing Medicare Market Share Growth in
Medicare Admissions 1998-2001
Market Competitors
HCA
6
Strong Cash Flow Trends Provide Opportunities
Net Cash Provided by Operating Activities Dollars
in Millions
Capital Reinvestment
Balance Sheet
Share Repurchase Program
New Dividend Policy
Excluding settlements with government agencies
and investigation related costs.
7
HCA Capital Expenditures
Billions
Infra- structure
Patient Safety
New Hospitals
Expansions
New Denver Facility
Routine
Distribution of Capital Dollars 2002-2005 and
Beyond
8
Opportunities Of Having Strong Cash Flow
Share repurchase program
42.19/share
35.76/share
YTD 20041
7.3 Billion 244 Million Shares 38 of
outstanding shares Average Price 30.03
422M 10.0M Shares
45.53/share
2003
1.1B 31.1M Shares
2002
36.88/share
282M 6.2M Shares
706M 19.2M Shares
2001
28.65/share
2000
1.3B 43.5M Shares
24.61/share
1.4B 55.6M Shares
1999
22.68/share
930M 41M Shares
1998
33.59/share
1997
1.3B 37.9M Shares
1 2004 purchases through 5-6-04
2 Includes other activities affecting share
balance (stock option exercises, restricted
grants, and ESPP activity).
9
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.
10
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