Breaking Down Hospital Q3 earnings, Carbon’s bad 2023, and Direct Contracting Results

Workweek October 30, 2023
Blake Madden

Healthcare Headlines

Hospitals report Q3 earnings

All publicly traded hospitals (HCA, Tenet, UHS, CHS) reported earnings this week with a slew of information for system execs and investors alike. Some quick highlights, analysis, and thoughts on the quarter:

HCA saw some EBITDA headwinds in Q3 most notably from its recently acquired Envision JV, Valesco (a 5,000 physician operation across 200 programs). The now wholly owned entity is bleeding cash for HCA to the tune of $50M a quarter, although they really had to bite the bullet rather than stomach ever-growing physician subsidies and keep the lights on:

• “It is important to understand that we believe the decision to consolidate Valesco was strategically imperative in maintaining the overall competitive positioning...

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