“Will we enter new markets? Hopefully, yes, but those opportunities haven’t necessarily presented themselves,” Mr. Hazen said on the Nashville, Tenn.-based system’s July 23 earnings call.
Mr. Hazen’s comments were in response to a question from an analyst asking what parameters the system would need to entertain a larger market or national expansion.
“I don’t know if we’ll deviate from our model,” Mr. Hazen said. “Our model is more centered on making our local system work better. Work better for the community, better for our patients and work better for other stakeholders that are connected to it.”
He said they don’t believe deviating from that model is the best answer for the company.
“And that’s been part of what we define as the durability of HCA Healthcare,” he said. “So, our focus is on investing back in our business, doing selective strategic acquisitions that complement our networks where we can, and really advancing our position in these great markets that we serve.”
HCA is not alone in emphasizing strategy over scale in acquisitions. Kaufman Hall noted in a July 9 report that health systems put an emphasis on strategic transactions in deals announced during the second quarter of 2024.
“Many of these M&A transactions enable hospitals to sustain and enhance access to care, launch new services, or strengthen and stabilize systems, which allows for future growth,” said Anu Singh, managing director and mergers & acquisitions practice leader with Kaufman Hall.
Kaufman Hall also noted that in the second quarter, for the first time since it began tracking this data, there were no for-profit health system acquirers in the quarter. In the first quarter of 2024, just one of the 20 announced transactions involved a for-profit acquirer.
HCA posted a net income of $1.5 billion in the second quarter, up from $1.2 billion over the same period in 2023.
Becker’s 3rd Annual Fall Chief Pharmacy Officer Summit is the top tier event that the people leading the future of pharmacy convene. This 3-day event is built specifically for Chief Pharmacy Officers and senior pharmacy leaders. The sessions examine the workforce, financial and clinical priorities shaping pharmacy today. Becker’s is where candid discussions flourish and new ideas thrive. Becker's 3rd Annual Fall Chief Pharmacy Officer Summit
