(Reuters) – Hospital operator HCA Healthcare beat Wall Street estimates for first-quarter profit on Friday, as more people underwent elective procedures.
U.S. hospitals have been benefiting from elevated demand for non-urgent procedures, particularly from older people, since the second half of 2023.
Health insurance bellwether UnitedHealth Group last week flagged a surge in demand for medical care and lowered its annual outlook, a sign that the trend would continue this year.
“As we look to the rest of the year, we remain encouraged by our performance, the overall backdrop of growing demand for healthcare services, and the investments we’ve made across our networks to serve our communities better,” HCA CEO Sam Hazen said.
Shares of Nashville, Tennessee-based HCA rose 1.4% to $346.28 in premarket trading.
The company reiterated its annual profit forecast of $24.05 to $25.85 per share, and said it includes the current and future impacts of policy developments, including the Trump administration’s tariffs on imports.
HCA earned a profit of $6.45 per share in the first quarter, compared with $5.93 a year earlier and above analysts’ average estimate of $5.76 per share, according to data compiled by LSEG.
The company reported revenue of $18.32 billion, compared with estimates of $18.26 billion.
HCA said same-facility admissions, a metric which helps measure how each facility is performing, rose 2.6%, while same-facility emergency room visits increased 4%.
(Reporting by Siddhi Mahatole and Mariam Sunny in Bengaluru; Editing by Shinjini Ganguli)
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