STAT+: HCA expects $1 billion hit from loss of ACA tax credits, Medicaid changes
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The country\u2019s biggest hospital chain outlined Tuesday what could be a more than $1 billion hit to profit this year from the expiration of federal tax credits and changes to Medicaid payment programs.\u00a0<\/p>\n
For many other companies, it\u2019d be a catastrophic proposition. For HCA Healthcare, it\u2019s a speed bump. The company\u2019s stock was up about 8% midday, and analysts remarked that its outlook was better than expected. It just goes to show how much a system of 190 hospitals with over $75 billion in annual revenue can withstand.<\/p>\n
On the company\u2019s earnings call for the fourth quarter of 2025, CEO Sam Hazen outlined this year\u2019s challenges. They include a reduction of between $600 million and $900 million to the company\u2019s earnings before income, taxes, and depreciation, a form of profit known as EBITDA, from the expiration of the Affordable Care Act\u2019s enhanced premium tax credits. It\u2019s a lot of money, but a small chunk of the up to $16.5 billion in EBITDA that HCA expects to generate this year.\u00a0<\/p>\n
Continue to STAT+ to read the full story\u2026<\/a><\/p>\n<\/div>\n