HCAEdge

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Mark Kimbrough VP, Investor Relations Chuck
Hall President, North Florida Division
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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.
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Collective Knowledge

• 190,000 employees
• 189 hospitals
• 92 surgery centers
• 14 million patients treated annually
• 5.2 million emergency room visits annually

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What Will Drive HCAs Future Success

• Located in Large, Growth Markets and Aging
  Population

• Capital Investments

• Quality Initiatives

• Patient Safety

• Prudent use of Companys Strong Cash Flows

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HCA Hospitals Locatedin Growth Markets

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

U.K.
Switzerland
Percent Growth in Market Population
2000-2005 Compared to the National Average of 4.5
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Improving unemployment rate in mid-2003 implies
mid-2005 rebound in admissions
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4
3
5
2
1
6
0
7
-1
Inpatient Admissions Growth
Unemployment Rate
-2
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2 Year Lagged
-3
Correlation
-4
2
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- R
of 0.74 since 1980
2
- R
of 0.66 since 1978
-5
2
- R
of 0.48 since 1970
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-6
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2002
2003
2004YTD
Unemployment Rate
Inpatient Admissions Growth
Source American Hospital Association, Bureau of
Labor Statistics and Goldman Sachs Research
estimates.
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Socio-DemographicsAge WaveDriving Healthcare
Utilization
Acute Care Utilization Index (2003100)
Baby Boomer Impact Accelerates
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What Will Drive HCAs Future Success

• Capital Investments

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Investments in Our Facilities

• 7.6 billion in existing facilities since 2000
  (1.5 billion 04)
• 35,700 per bed annually
• 130 million in information technology
• 300 million in patient safety technologies since
  97

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Distribution of Capital Dollars Remains
Unchanged2003 and beyond
Ongoing Projects in Capital Plan
Three Facilities 511 Beds
33 ER Expansions
Open Heart, Cardiology Oncology, etc.
Three New Facilities 310 Beds
56 Facilities with Surgery and/or
ICU/CCU expansions
1,611 New Beds
Represents 4.2B of projects
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Outpatient Strategy Progressing
Transactions totaling 62 million completed 2030
imaging center and 8-10 surgery center
transactions expected to be completed over the
next 12 months
Total I Management, LLC Tampa Bay Area/5 imaging
centers
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What Will Drive HCAs Future Success

• Quality Initiatives

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Our Recognition for Quality
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• Satisfied Physicians
• HCA physicians rank our facilities higher than
  that of other hospitals across the country

Source Gallup Satisfaction Surveys 2003
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Our Commitment to Quality

• HCA Quality Review System (QRS)
• An internal process that provides ongoing
  assurance that patient care servicesin HCA
  hospitals meet defined quality standards.

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Our Commitment to Quality

• QRS surveys analyze clinical performance using
• JCAHO survey scores
• Professional liability risk exposure
• Patient, employee, and physician satisfaction
  results

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Our Commitment to Quality
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What Will Drive HCAs Future Success

• Patient Safety

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Our Commitment to Patient Safety

• HCA Has
• Invested Over
• 300 Million In
• Patient Safety
• Technologies
• Since 97

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Our Commitment to Patient Safety

• eMAR Barcoding
• Ensures the five Rs right patient, right
  medication, right dose, right time, right route
  of administration
• The benefit to our patients
• Prevents the error patients fear most getting
  the wrong medication

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Our Commitment to Patient Safety

• Electronic Provider Order Management (ePOM)
• Allows physicians to input prescriptions and
  patient orders electronically and transmit them
  directly to a pharmacy or hospital department
• The benefit to our patients
• Eliminates the risk of a pharmacist or clinician
  misreading a physicians handwriting

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Our Commitment to Patient Safety

• ePOM - Safety Alerts
• Drug allergies
• Dose warnings
• Duplicate orders
• Abnormal results
• Severe drug interactions
• Common test interactions
• Age limits for certain drugs

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Addressing Medication Errors (ADES)
eMAR Barcoding
ePOM
Bates DW et al. Incidence of adverse drug
events, potential adverse drug events. JAMA
199527429-34.
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What Will Drive HCAs Future Success

• Prudent use of Companys Strong Cash Flows

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Cash flow in 2004 Remains Positive
Net Cash Provided by Operating Activities1 Dollars
in Millions
8.0
Excluding settlements with government agencies
and investigation related costs.
1 1999-2003 are non-GAAP numbers
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Avg Share Price
7.5 Billion 249 Million Shares 38 of
outstanding shares Average Price 30.20
40.07
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
1.3B 43.5M Shares
2000
Impact of Tender Offer 10 Billion 312 Million
Shares Average Price 32.13
1.4B 55.6M Shares
22.68
1.4B 55.6M Shares
1999
33.59
930M 41M Shares
930M 41M Shares
1998
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
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In Summary We Have.
Great Assets
Excellent Investment Opportunities
Strong Cash Flows
Excellent Long-Term Earnings Growth Outlook
Prudent Financial Strategy Focused on Shareholder
Value