HCA bracing for $200M hurricane-related financial hit in Q4

HCA Healthcare took a $50 million financial hit in the third quarter due to the impacts of the back-to-back hurricanes Helene and Milton, which slammed facilities in North Carolina, Georgia and Florida.

The for-profit health system told investors on Friday morning that it expects to feel the effects of the two storms in the fourth quarter as well, with additional hurricane-related costs likely to be between $200 million and $300 million, according to a press release.

HCA noted that these projections do not account for insurance recoveries it may receive. 

“Our people recently, and heroically, responded to two major hurricanes in less than two weeks,” Sam Hazen, HCA’s CEO, said in the release. “The teamwork and enterprise capabilities of HCA Healthcare were on full display before, during and after these storms.”

“I am grateful for, and humbled by, the unwavering dedication, remarkable bravery and outstanding leadership demonstrated by our people throughout these storms,” Hazen continued. “They truly demonstrated that above all else, they are committed to the care and improvement of human life.”

Despite the challenges posed by the extreme weather, HCA reported $1.3 billion in profit for the third quarter as well as $17.5 billion in revenue. Both surpassed Wall Street’s expectations, according to Zacks Investment Research.

Even though the company posted a beat, its shares were down by nearly 10% at about 3:30 p.m. ET.

Revenue for the first nine months of the year was $52.3 billion, while profits were $4.3 billion. HCA also reaffirmed its guidance for the year, expecting between $21.60 and $22.80 in earnings per share. Given the effects of the hurricane, the company said it expects earnings to come in toward the lower end of the range.

HCA also expects to bring in between $69.75 billion and $71.75 billion in revenue for the full year.

The health system said it also anticipates that the negative effects of the hurricanes will carry into the early part of 2025, but that it should still hit the upper part of its growth target ranges.