HCA Healthcare, Inc. HCA recently announced preliminary results for the third quarter ended Sep 30, 2020.

For the period, the company expected revenues to be $13.30 billion on a preliminary basis, indicating a 4.8% rise from the year-ago quarter’s reported figure.

Notably, Income before income taxes is anticipated to be around $950 million in the to-be-reported quarter, implying a 3% decrease from the prior-year quarter’s reported number. Results for the September quarter consist of a reversal of $822 million received as a government stimulus in the second quarter, which is related to general distribution funds received from the Provider Relief Fund established by the CARES Act.

For the third quarter of 2020, Adjusted EBITDA is anticipated to be $2.03 billion, suggesting an 11.2% decline from the year-ago quarter’s reported figure.

HCA Healthcare expects a 4% dip in its same facility admissions and a 9% decline in facility equivalent admissions, both from the year-ago reported figures. For the third quarter, same facility emergency room visits are expected to drop 20% from the year-earlier reported number. The company’s same facility revenue per equivalent admission is projected to rise around 15% from the prior-year reported number on the back of acuity for patients and favourable payer mix.

Moreover, management announced that it will repay around $6 billion of government assistance funds received as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

In the early days of the COVID-19 pandemic, HCA Healthcare undertook several measures to address the operational and financial challenges. These actions made the company stable enough to return or repay all its share of Provider Relief Fund distributions of $1.6 billion and $4.4 billion of Medicare accelerated payments. HCA Healthcare intends to fund the amount from available cash and cash flow from future operations.

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HCA Healthcare  (HCA) – Get Report was rising Friday after the hospital operator provided third-quarter revenue guidance that exceeded Wall Street’s expectations.

Shares of the Nashville-based company were up 2.5% to $135.10.

HCA said it expects revenue to roughly total $13.3 billion, up from $12.69 billion a year ago, and ahead of FactSet’s call for revenue to be flat with a year earlier.

The company said it expects income before income taxes to come to $950 million, down from $979 million a year ago. 

This reflects a reversal of $822 million in government stimulus income recorded in the second quarter of 2020 related to general distribution funds under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

HCA said it will return, or repay early, about $6 billion of government assistance funds received as part of the CARES Act.

The company said had taken a conservative approach during the early days of the pandemic,  which “included a number of actions to meet the operational and financial challenges this global health crisis was expected to present.”

“As the initial immediacy of the emergency has passed, and with more information, and more experience managing our operations during the pandemic, we believe returning these taxpayer dollars is appropriate and the socially responsible thing to do,”  Sam Hazen, CEO, said in a statement.

HCA Healthcare is able to return, or repay early, all of its share of Provider Relief Fund distributions of about $1.6 billion and roughly $4.4 billion in Medicare accelerated payments.

Hazen added that “we greatly appreciate the CARES Act funding and the policymakers who fought hard to ensure hospitals would have the essential resources during the pandemic.”

HCA Healthcare said it expects to report full results Oct. 26.

The large hospital operator HCA Healthcare Thursday said it will “return, or repay early” about $6 billion in federal stimulus money from the Coronavirus Aid, Relief, and Economic Security Act, known as CARES.

HCA, one of the nation’s biggest hospital operators, has been performing well financially and earlier this year reported a profit of more than $800 million in its second quarter thanks to CARES Act funds.

The CARES Act was designed to provide relief to providers of medical care who gain reimbursement even if patients have no health insurance coverage. Congress said the money can be used for costs related to treating Covid-19 patients or providers can use it to reimburse for lost revenue related to the pandemic.

In HCA’s case, the hospital operator said it received $1.6 billion in so-called “provider relief fund distributions” and another $4.4 billion in accelerated payments from the Medicare health insurance program for elderly Americans.

But HCA chief executive officer Sam Hazen said Thursday “the initial immediacy of the emergency has passed” so the operator of more than 180 hospitals is ready to give the money back to the government.

“With more information, and more experience managing our operations during the pandemic, we believe returning these taxpayer dollars is appropriate and the socially responsible thing to do,” Hazen said. “We greatly appreciate the CARES Act funding and the policymakers who fought hard to ensure hospitals would have the essential resources during the pandemic.”

HCA in July said it was seeing an increasing demand for elective surgeries that were cancelled or postponed as inpatient facilities across the country freed up space for patients infected with