Nashville, Tenn.-based HCA Healthcare reported robust first-quarter results, including an operating income of $2.3 billion (12.7% margin), but evolving federal policy — particularly around healthcare reform and potential tariff changes — introduces new risks for health systems in 2025.
“We are in a very fluid situation,” CEO Sam Hazen said during the company’s first-quarter earnings call on April 25. “While we have a general sense for the new administration’s stated priorities, we do not have any specifics. It is unclear how these efforts might be carried out and what effects they may have on our business.”
HCA leadership said the health system supports reasonable reforms that protect patient coverage and hospital sustainability, but opposes changes that would jeopardize access to care.
While executives declined to size the potential impact of policy risks at this stage, Mr. Hazen noted that HCA is drawing on lessons from the COVID-19 pandemic to prepare contingency plans. These include operational adjustments and the strategic use of cash flow and balance sheet flexibility if needed.
“Our planning process … will maintain a long-term horizon and move forward with a sense of calm, steadiness and confidence,” Mr. Hazen said. “We believe we can use our financial strength, mission-oriented culture, and the can-do attitude of our people to navigate through this uncertain period.”
CFO Mike Marks provided additional context around potential supply chain risks linked to new tariff policies.
He said that about 70% of HCA’s 2025 supply expense is secured under firm pricing contracts, with 75% of supplies sourced from the U.S., Canada, Mexico or goods broadly exempt from tariffs, such as pharmaceuticals.
Supported by its supply chain subsidiary, HealthTrust, HCA and its partners are actively engaged in further “de-risking and diversifying” their supply chain — specifically away from China, according to Mr. Marks.
“I do believe that our tariff risk for 2025 is manageable, but .. the environment is extremely fluid,” Mr. Marks said. “We are continuing to closely monitor as the state goes forward.”