HCA Investor Day

1
UBS Global Healthcare Conference
February 14, 2006
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. The presentation may
contain certain (non-GAAP) measures you may
refer to the Companys financial filings on Form
10-K or Form 10-Q for reconciliation. These
non-GAAP financial measures should not be
considered an alternative to GAAP financial
measures. 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
Hospital Corporation of America
NYSE HCA

• Largest, publicly traded, healthcare provider
  with
• 182 hospitals
• 94 freestanding surgery centers

Located in 22 states, London, England and
Geneva, Switzerland
Sky Ridge Medical Center Denver, CO
StoneCrest Medical Center Nashville, TN
Capital Regional Medical Center Tallahassee, FL
4
HCA 2005 Highlights

• Revenues totaled 24.5 billion up 4.3 (same
  facility 4.8)

• EPS (GAAP basis) up 24 to 3.19 per diluted
  share

• EPS excluding gains on sale of facilities,
  impairments, foreign
• tax repatriation and hurricane expenses,
  increased 15

• Cash flow from operations totaled 3.2 billion
  vs. 3.0 billion in
• 2004

• Repurchased 36.7 million shares of stock (1.9
  billion)

• Increased dividend 13 to 0.17 per quarter

5
Returns Improved in 2005
Return Analysis change from Prior Year
2005
2003
2004
6
Revenue Per Unit Growth
Net Revenue / Adjusted Admission change from
Prior Year

• Revenue trends favorable.

• Favorable Medicare, Medicaid and managed care
  revenue yield per adjusted admission.

5.4
6.3
7.5
Managed Care Revenue/AA Change from Prior Year
Medicare Revenue/AA Change from Prior Year
Medicaid Revenue/AA Change from Prior Year
adjusted for uninsured discount
7
Expense Management Favorable
Cash Operating Expense/Adjusted Admission
Change from Prior Year

• Effective expense management significantly
  contributed to favorable earnings performance.

Same Facility
8
Solid Labor Management
Manhours / Adjusted Admission Change from Prior
Year

• Labor management favorable

• Productivity improved

Wage Rate Change from Prior Year

• Wages managed to efficient levels.

Salary, Wages Benefits of Net Revenue

• SWB as a of net revenue favorable.

adjusted for uninsured discount
As Reported
9
Volume Trends
1999
2000
2001
2002
2003
2004
2005
0.1
2.7
2.8
2.7
0.7
2.5
0.6
Admissions Same Facility Change from PY
1.3
1.4
2.5
2.6
2.6
2.6
0.0
Equivalent Admissions Same Facility Change from
PY
10
Admission Trends

• Admissions growth appears more favorable
  adjusting for change in DPUs and one day admits.

• Adjusted admissions reflect continued growth in
  outpatient services and the observation day
  effect.

Same Facility
11
Physician Recruitment
Physician Recruitment
MOB Development

• Currently 22 million square feet of medical
  office space in service.

701

• Total occupancy is 79.

• Medical office square footage coming on line.

45
384
1,300,000
sq. ft.
47
220M
55
53
420,000
sq. ft.
62M
2004
2005
2006E
2005
Total Number of Physicians Recruited

• 83 increase in recruited physicians in 2005.

• 76 recruited physicians using in-house service.

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Uninsured Volume
2000
2001
2002
2003
2004
2005
Uninsured Admissions Same Facility of Total
Admissions
5.1 Dec YTD
N/A
5.3 5.5 5.4 Oct Nov
Dec
14.7 14.3 17.0 Oct Nov
Dec
9.5 Dec YTD
2004 9.7
15.2 vs. PY
15.3 vs. PY
13.7 vs. PY
Uninsured Admissions Same Facility Chg from
Prior Year
11.6 vs. PY
15.0 vs. PY
5.1 vs. PY
7.2 vs. PY
3.7 vs. PY
5.9 vs. PY
7.3 vs. PY
3.3 vs. PY
1.9 vs. PY
2002 Totals based on 2003 Prior Year
Uninsured ER Visits Same Facility of Total ER
Visits
20.4 Dec YTD
N/A
21.1 20.6 20.3 Oct Nov Dec
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HCA Hospitals Located in Growth Markets

• 182 Hospitals
• 94 Surgery Centers
• 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
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Socio-Demographics-Age Wave
Driving Healthcare Utilization
Acute Care Utilization Index (2003100)
Baby Boomer Impact Accelerates
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HCA Capital Expenditures

• Capital Commitments
• Houston, TX 517 million
• Pearland, TX new hospital (2007)
• Denver, CO 250 million
• new childrens hospital/ expansion of 3
  hospitals
• San Antonio, TX 165 million
• new hospital with JV partner (2007)
• Atlanta, GA 130 million
• Emory Johns Creek, new hospital (2007)
• Salt Lake City, UT 85 million
• new hospital (2007/ 08)

Dollars in Billions
Billions
2003 1.84
2004 1.52
2005 1.6
2006P 1.9
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Capital Placed in Service by Year
2005 projects typically approved 24-30 months ago
(Dollars in Millions)
Western
249
499
373
466
641
791
Eastern
427
675
450
179
500
242
Total HCA
676
1,174
823
645
1,141
1,033
17
2005 Major Capital Projects Coming On Line
Two new ASCs one expansion Three new imaging
centers Two new oncology centers Three
Hospital-based imaging expansions Seven
Hospital-based surgery expansions
Outpatient
150M (23)
13 ICU/bed expansions Three major surgery
expansions Eight ED expansions Seven Womens
Services expansions
Inpatient
400M (62)
Interior/Exterior renovations, parking garages,
etc.
Infrastructure
95M (15)
Total 645M
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2006 Major Capital Projects Coming On Line
Eight new ASCs two expansions one
replacement 15 new imaging centers One new
oncology center Three Hospital-based imaging
expansions Six Hospital-based surgery
expansions Eight medical office buildings (on
balance sheet)
Outpatient
290M (26)
Inpatient
17 ICU/bed expansions Six major surgery
expansions 11 ED expansions Six Womens Services
expansions
630M (55)
Emory Johns Creek (118 beds and 135,000 sq. ft.
MOB)
Replacement Facility
130M (11)
Interior/Exterior renovations, parking garages,
etc.
Infrastructure
90M (8)
Total 1.14B
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2006 Outpatient Under Development
Excludes Hospital-based Development
(Dollars in Millions)
of
Centers
Amount
Ambulatory Surgery Centers
11
65
Imaging Centers
15
73
Oncology Centers
1
4
Cath Lab
4

13
Freestanding ER
3

12


Total
34


167
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Outpatient Strategy Progressing
Transactions totaling 130 million
completed 2030 imaging center and 8-10 surgery
center transactions expected to be completed over
the next 12 months
Diversified Radiology (Denver) 4 imaging
centers/fifth under construction
Austin Radiology Assoc. 2 imaging centers
Sarah Cannon Research Institute (Nashville)
Thousand Oaks Diagnostic Imaging
First Health (Jacksonville)
Hope Cancer Centers (Tallahassee) 3 centers
Ultra Open MRI (Tampa) 6 centers
Millcreek Imaging Center Salt Lake City, UT
LAD Imaging Centers (Orange City, Deltona)
Total I Management, LLC (Tampa Bay Area) 5
imaging centers
MDI 7 Centers
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HCAs Cash Flow Remains Strong
Uses of Cash
(1) Capital Reinvestment 1.6B in 2005 in
existing markets and 1.9B in 2006
Net Cash Provided by Operating Activities Dollars
in Millions
(2) Share Repurchase Program 12B in 8 years 36.7
million shares purchased in 2005 11.1 million
shares purchased in 2006 under 1B open-market
authorization
6.9
(3) Dividend Policy Approx. 20 to 25 percent
payout
(4) Acquisitions opportunistic 1B Health
Midwest - April 2003 Austin, TX and Nashville, TN
- pending acquisitions
(5) Debt Repayment Debt/ cap 64.8 at 12/31/05
Reduced due to government settlement and
investigation related costs
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(No Transcript)