HCA Investor Day

1
Jack O. Bovender, Jr. Chairman and CEO
Vic Campbell Senior Vice President
JP Morgan/Jan 2005
2005
HCA
2
Cautionary Note Regarding Forward-looking
Statements

• HCAs management will be making some
  forward-looking statements during todays
  presentation. Those forward-looking statements
  are based on managements current expectations
  and are subject to risks and uncertainties that
  may cause those forward looking statements to be
  materially incorrect.
• Certain of those risks and uncertainties are
  discussed in HCAs filings with the Securities
  and Exchange Commission, including the
  companys report on Form 10-K and its quarterly
  reports on form 10-Q, to which you are referred.
  Management cautions you not to rely on, and
  makes no promises to update any of the forward
  looking statements.

JP Morgan/Jan 2005
2005
HCA
2
3
HCA is located in 16 of 20 Fastest Growing
Large US Cities
Dallas/Ft. Worth 12

• Generally 25-40 Market Share
• 40 of facilities in Texas Florida

Denver 9
Kansas City 5
U.K.
Las Vegas 22
Nashville 8
Switzerland
Richmond 8
Austin 18
Southern California 9
Panhandle 10


Palm Beach 11
Percent Growth in Market Population 2000-2005
Tampa Bay 8
Houston 10
Dade 8
Compared to the National Average of 4.5
4
HCA Capital Expenditures
Billions
2004E 1.6
2000 1.2
2001 1.4
2002 1.7
2003 1.8
Expansions
Open Heart,
Imaging Cardiology, Oncology, etc.
54 Facilities with Surgery and/or ICU/CCU
expansions
1,565 New Beds
Four New Facilities 378 Beds
Distribution of Capital Dollars 2002 and Beyond
5
HCA
Capital Regional Medical Center
Tallahassee, FL (100M) 200 beds Opened August
2003
6
HCA
Stonecrest Medical Center
Smyrna, TN (96M) 75 beds Opened December 2004
7
Inpatient Admissions and Outpatient Visits 1980
- 2003
8
Socio-DemographicsAge WaveDriving Healthcare
Utilization
Acute Care Utilization Index (2003100)
Baby Boomer Impact Accelerates
9
HCA Admission Trends 2001 to 3Q 2004Same Facility
HCA Growing Medicare Market Share Growth in
Medicare Admissions 1998-2001

2Q includes same-market admissions
10
Inpatient Surgery Trends Improving2001 to 3rd
Quarter 2004 - Same Facility
1
1 Includes Kansas City facilities.
11
Enhanced Outpatient Services Focus
O/P Comprised of Three Business Lines
2003 of HCA Net Revenue
As a of Outpatient Surgeries
70
Hospital Based
Outpatient Surgeries
15.3
ASC Based
30
12
Outpatient Strategy Processing
Transactions totaling 41 million completed 2030
imaging center and 8-10 surgery center
transactions expected to be completed over the
next 12 months
HCA Surgery Centers
13
2004 Managed Care Contracting
6,844 Facility Level Active Contracts
2005 Contract Pricing Timeline
1Q04
2Q04
3Q04
4Q04
Pre-2004
2005 Cumulative
Anticipated Completion Dates
Net Revenue per Adjusted Admission Managed Care
Other Discounted
16
11.1
9.0
9.9
15.0
13.3
13.0
11.4
11.1
10.5
9.6
9.2
7.3
7.0
6.6
0
3Q 04
1Q 02
2Q 02
3Q 02
4Q 02
1Q 03
2Q 03
3Q 03
4Q 03
1Q 04
2Q 04
75 of 2005 and 35 of 2006 contracts completed
14
Medicare Reimbursement Improves Oct. 1, 2004with
Outlier Threshold Change and Full Market Basket
Update
Hospitals receive full market basket update 3.3
beginning October 1, 2004
Medicare outlier threshold reduced from 30,150
(Oct 03), to 25,800 (Oct 04)
15
Labor Cost
Wage Rate Same Facility - Change from PY
2001
2002
2003
2004
1
1Q 01
2Q 01
3Q 01
4Q 01
1Q 02
2Q 02
3Q 02
4Q 02
1Q 03
2Q 03
3Q 03
4Q 03
1Q 04
2Q 04
3Q 04
1 Includes Kansas City facilities.
Contract Labor Reduction /Adj. Patient Day
15 vs. Q103
25 vs. Q103
29 vs. Q103
33 vs. Q103
29 vs. Q103
33 vs. Q103
Eastern and Western Consolidated Operations
16
Bad Debt Impact on Operating Expenses per
Adjusted Admission

2002
2003
2004
2001
15
9.4
7.4
8.5
7.0
Sept. YTD
10.8
10.4
10.2
10
8.9
8.8
8.5
8.0
8.0
7.6
6.6
7.6
9.3
7.0
8.1
7.8
6.0
7.01
7.4
5.4
7.5
5.5
Operating Expenses/AA Percent Change from Prior
Year
5.8
6.2
5
6.0
5.5
5.6
5.3
5.5
5.2
5.11
4.7
3.8
6.7
6.0
6.4
6.5
0
Sept. YTD
1Q 01
2Q 01
3Q 01
4Q 01
1Q 02
2Q 02
3Q 02
4Q 02
1Q 03
2Q 03
3Q 03
4Q 03
1Q 04
2Q 04
3Q 04
Same Facility Percent Change from Prior Year
Operating Expense/AA (Adj. For Bad Debt)
Operating Expense/AA
1 Adjusted for 26M in net hurricane operating
expense impact during the 3rd quarter
17
Revisions Made to the Uninsured Policy

• Provide a discount to all uninsured non-elective
  patients similar to managed care rates
• Continue to attempt to qualify uninsured
• patients for Medicaid and other state and
• federal programs
• Charity care will continue to be provided for
• those uninsured patients with income levels
• at or below 200 percent of the Federal Poverty
  Level
• The Company estimates that there will be no
• material impact on earnings

18
HCA Reduces Malpractice Reserves by 59 Million
in 2Q 2004
HCA Large Claims Declining
19
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
Accounts Receivable IndicatorsCash Collections
Adj. Net Revenue / Days in A/R
21
Strong Cash Flow Trends Provide Opportunities
Net Cash Provided by Operating Activities Dollars
in Millions
Capital Reinvestment 1.6B in 2004
Share Repurchase Program 10.0B in 8
years 2.5B Dutch Auction completed at 39.75
in November 04
New Dividend Policy 250mm annually
Excluding settlements with government agencies
and investigation related costs.
22
Opportunities of HavingStrong Cash Flow
Avg Share Price
7.5 Billion 249 Million Shares 38 of
outstanding shares Average Price 30.20
40.05
Share Repurchase
3.1B 77.4 Shares
1
2004
35.76
45.53
1.1B 31.1M Shares
36.88
2003
2002
282M 6.2M Shares
28.65
706M 19.2M Shares
2001
24.61
24.61/share
1.3B 43.5M Shares
2000
Impact of Tender Offer 10 Billion 312 Million
Shares 48 of outstanding shares Average Price
32.20
1.4B 55.6M Shares
22.68
1.4B 55.6M Shares
22.68/share
1999
33.59
930M 41M Shares
930M 41M Shares
1998
33.59/share
1.3B 37.9M Shares
1.3B 37.9M Shares
1997
2 Includes other activities affecting share
balance (stock option exercises, restricted
grants, and ESPP activity).
1 2004 purchases through 12/31/04
22
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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