UBS Global Healthcare
Services Conference
Jack O. Bovender, Jr. Chairman and CEO
Vic Campbell
Senior Vice President
Mark Kimbrough
VP, Investor Relations
February 2004
HCA
This press release contains forward-looking statements based on current management expectations. Those forward-looking statements
include all statements regarding our estimated results of operations in future periods and all statements other than those made solely
with respect to historical fact. Numerous risks, uncertainties and other factors may cause actual results to differ materially from those
expressed in any forward-looking statements. These factors include, but are not limited to (i) the highly competitive nature of the
health care business, (ii) the efforts of insurers, health care providers and others to contain health care costs, (iii) possible changes in
the Medicare and Medicaid programs that may impact reimbursements to health care providers and insurers, (iv) the ability to achieve
operating and financial targets and achieve expected levels of patient volumes and control the costs of providing services, (v)
increases in the amount and risk of collectibility of uninsured accounts and deductibles and co-pay amounts for insured accounts, (vi)
the ability to attract and retain qualified management and personnel, including affiliated physicians, nurses and medical support
personnel, (vii) potential liabilities and other claims that may be asserted against the Company, (viii) fluctuations in the market value
of the Company’s common stock, (ix) the Company’s ability to complete the share repurchase program, (x) changes in accounting
practices, (xi) changes in general economic conditions, (xii) future divestitures which may result in additional charges, (xiii) changes
in revenue mix and the ability to enter into and renew managed care provider arrangements on acceptable terms, (xiv) the availability
and terms of capital to fund the expansion of the Company’s business, (xv) changes in business strategy or development plans, (xvi)
delays in receiving payments for services provided, (xvii) the possible enactment of Federal or state health care reform, (xviii) the
outcome of pending and any future tax audits and litigation associated with the Company’s tax positions, (xix) the outcome of the
Company’s continuing efforts to monitor, maintain and comply with appropriate laws, regulations, policies and procedures and the
Company’s corporate integrity agreement with the government, (xx) changes in Federal, state or local regulations affecting the health
care industry, (xxi) the impact of charity care and self-pay discounting policy changes, (xxii) the ability to successfully integrate the
operations of Health Midwest, (xxiii) the ability to develop and implement the financial enterprise resource planning information
system within the expected time and cost projections and, upon implementation, to realize the expected benefits and efficiencies,
(xxiv) the ability to obtain court approval of the settlement of the class action securities lawsuits originally filed against the Company
in 1997; (xxv) the ability of the Company to continue to fund a cash dividend in the future at the current rate; and (xxvi) other risk
factors detailed from time to time in the Company’s filings with the SEC. Many of the factors that will determine the Company’s
future results are beyond the ability of the Company to control or predict. In light of the significant uncertainties inherent in the
forward-looking statements contained herein, readers should not place undue reliance on forward-looking statements, which reflect
management’s views only as of the date hereof. The Company undertakes no obligation to revise or update any forward-looking
statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.
All references to “Company” and “HCA” as used throughout this document refer to HCA Inc. and its affiliates.
2
HCA HCA is located in 16 of 20 Fastest Growing
Large US Cities
Generally 25-40% Market Share
40% of facilities in Texas & Florida
Dallas/Ft.
Worth
+12%
Denver
+9%
Kansas City
+5%
U.K.
Las Vegas
+22%
Nashville
+8%
Richmond
+8%
Austin
+18%
Southern
California
+9%
Panhandle
+10%
%%
%
Percent Growth in
Market Population
2000-2005
Compared to the
National Average of
4.5%
Palm Beach
+11%
%
Houston
+10%
Switzerland
Tampa Bay
+8%
Dade
+8%
3
HCA
Operations: 2003 Key Observations
Patient Volume:
Patient volume remains soft from earlier levels - we do see some strength
in selected markets
Growth rate varies significantly by month and by market
ER Visit growth was strong (+4.2%); half the growth coming from uninsured
 ASC’s experiencing favorable growth (+2.1%)
4
HCA
Operations: 2003 Key Observations
Expenses:
Impact on earnings from volume pressures minimized by efficient expense
management:






SW&B % of Net Revenue  50 bps
Contract labor/APD  33% from 1Q 03
Avg. hourly rate increased 4.7% ( 40 bps from PY)
SW&B/AA declined 260 bps from prior year
Employee Benefit Cost moderating; 2.9% vs.13.7% PY
Supplies/AA costs slowing ( 80 bps vs. 2002)
Bad Debt experience in 2003:
a. Bad Debt expense was $2.2B, up $574M (sf1), or 36% over 2002
b. Charity care recognition grew dramatically in 2003 to $821M up
$230M (sf), or 40% over 2002
c. We are forecasting no relief in Bad Debt/Charity in 2004
 At close of 2003, we had $2.65B reserved as Bad Debt,
representing 88.3% of self-pay balances (only $351M on balance
sheet not reserved)
5
HCA
Operations: 2003 Key Observations
Payor Composition:
Payor class composition is changing. Medicare and Self-pay are growing
(2.7%, 6.9%). All Other Payors have declined (-1.2%)
Self-pay admissions, although representing only 4.4% of total admissions,
grew 6.9%
Self-pay admissions via the emergency room grew 14%
Pricing:
No surprises in pricing (rate, acuity, technology) environment in 2003
(+7.5%), but 2004 will be more difficult due to Medicare Outlier and
Charity Care changes
6
HCA
Operations: 2003 Key Observations
Other Operations Highlights:
Net Revenue (less Bad Debt) is converting to cash at favorable levels (100.2%)
Successfully integrated Health MidWest
Patient Safety agenda was aggressively deployed
Total employee turnover 20.1% vs. 22.8% in 2002. RN turnover 16.8% vs. 17.0%
in 2002. Fourth consecutive year of improving turnover rates.
1
1
Enhanced outpatient organization and strategy underway
All patient/employee satisfaction scores remain positive and at record levels
1. Turnover results exclude Midwest Division.
7
HCA
2003 Operating Indicators
Same Facility vs. prior year
2003 Quarterly Trending
Q1
-0.4%
Q2
Q3
0.6%
0.2%
Admissions
Net
Revenue/ AA
SWB/AA
Supplies/ AA
Labor Cost/
Manhour
Q4
2.1%
7.5%
7.1%
5.8%
9.6%
5.0%
9.8%
9.5%
4.8%
+0.6%
+7.5%
1.6%
-2.6%
7.3%
7.6%
+8.1%
4.9%
4.5%
6.3%
7.7%
2003 vs. 2002
(same facility)
4.7%
+4.7%
8
Increasing Uninsured Revenues
HCA
Put Pressure on Bad Debts

Provision for Doubtful Accounts increased to
approximately 10% of NR

Increasing self-pay receivables combined with a
deterioration in collectibility of this A/R contributed
to the need to increase the provision for doubtful
accounts

Soft economy/unemployment is a major driver of
the escalation of uninsured patients

We anticipate no significant moderation in bad
debts in 2004
9
HCA
Capital Expenditures
Dollars in Billions
Billions
2000
2001
2002
2003
2004E
$1.2
$1.4
$1.7
$1.8
$1.8
$2.0
Shared Services
$1.5
Infrastructure
Develop., IT&S, &
Pat. Safety
New &
Replacement
Facilities
$1.0
Facility Expansion
Projects
Midwest
Division
$0.5
Routine
Capital
$0.0
2000
2001
2002
2003 2004E
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HCA
Distribution of Capital Dollars
2002-2005 and beyond
Ongoing Projects in Capital Plan
ER & Outpatient
Services
19%/$720
Land &
Improvements
14%/$565M
Replacement
Facilities
3%/$98M
37
37 ER
ER
Expansions
Expansions
54 Facilities with
Surgery and/or ICU/CCU
expansions
Surgery/Special
Units
22%/$870M
New & Expanded
Services
18%/$740M
Imaging,
Open Heart, Cardiology
Oncology, etc.
Four New Facilities
378 Beds
1,565 New Beds
Beds
14%/$550M
New Facilities
10%/$395M
11
HCA
Growth Capital
Assets Placed in Service
2003
$457
(Dollars in Millions)
$500
$1,400
$206
$296 $264
$1,200
$1,000
$800
$0
1Q
2Q
3Q
4Q
$600
$400
$200
$0
2000
2001
2002
2003
2004
2005
$249
TotalEastern
HCA
Total HCA
$549
$373
$373
$676
$427
$676
$1,223
$896
$678
$896
$678
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HCA
New Facilities: Denver, CO
Sky Ridge Medical Center
Denver, Colorado
Opened 8/20/03
104 Beds
Cost: $147M
4 Month Update
Admissions:
2,076 (+47% vs. Budget)
ADC:
45 (57 in December)
ER Visits:
9,125 (+56% vs. Budget)
13
HCA
New Facilities: Nashville, TN
StoneCrest Medical Center
Nashville, Tennessee
Opened 11/30/03
75 Beds
Cost: $76M
One Month of Operations
Admissions:
255
ER Visits:
3,449
14
HCA
Replacement Facility: Tallahassee, FL
Before Replacement
15
HCA
Replacement Facility: Tallahassee, FL
Replacement Facility
16
HCA
Replacement Facility: Tallahassee, FL
Capital Regional
Medical Center
Tallahassee, Florida
Opened 8/26/03
180 Beds
Cost: $98M
4 Month Update
(% change vs. PY)
Admissions:
Surgeries:
ER Visits:
Caths:
+15.3%
+9%
+28%
+30%
• Admissions growth for 12 months
prior to the new facility opening: 5%
17
HCA
Recent Capital Results
3.2% Admissions growth rate for facilities with major projects
opening in 2002 or 2003 – vs. 1.4% for Total Company
Denver: New Facility
2,076 admissions in the first 4 months of operations (+47% vs. Budget)
Tallahassee: Replacement Facility
15.3% growth in admissions in the first four months vs. 5% growth rate in the 12
months prior to opening
Nashville: New Facility
3,449 ER visits in the first month of operations
Lewisville, TX: 85 net new beds (1Q)
14.6% growth in admissions (April-December)
Richmond, VA: Major surgery expansions at 2 facilities (2Q)
14.4% inpatient surgery growth (July-December)
Brandon, FL: Open heart program
323 open hearts in first year
Austin, TX: 66 new beds in North Austin (3Q 02)
2003 admissions growth rate: 12.5% vs. 10.3% PY
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HCA Board Approves Dividend Increase
HCA
From $0.02 Per Share to $0.13 Per Share

Prudent investment/use of free cash flow

Share Repurchase
- Integral component of the Company’s financial
policies
- Since 1997, repurchased $6.9 billion of HCA
stock (average cost $29.51)

Dividend
- Cash-flows allow us to pay a significantly
increased dividend
- Continue to reinvest in our markets, and
strengthen our balance sheet
19
HCA HCA is Investing Significantly in Programs for
Patient Safety and Improved Patient Outcomes

 E MAR:
Medication Error
Prevention
 E POM:
Physician Order
Entry
 100% Participation in CMS
Quality Reporting Initiative
 Member of NQF and
Leapfrog
 Cardiovascular, OB and
Emergency Department
Initiatives
20
HCA
In Summary We Have….
Great Assets
Excellent Investment Opportunities
Strong Cash Flows
Excellent Long-Term Earnings Growth Outlook
A prudent financial strategy that provides for a strong
balance sheet and return of cash to shareholders through
share repurchase and/or dividends
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