Key themes/callouts: - The big theme from Q2, and for HCA in general in 2024 is..."Core Operations, enhanced." Meaning nothing major - good or bad - has happened to the health system, while it enjoys a favorable operating environment from normalized labor conditions and higher volumes.
- All volumes are up and to the right in a high utilization environment
- Exchange growth is extremely strong
- Expenses are moderating in professional fees while supplies, other operating costs, SWB are flat as a % of revenue
- Supplemental payments were a headwind in Q1 and are now a tailwind as several states have flip-flopped
- The travel nursing market is at a trough - contract labor as a % of revenue is 4.8% and down from 10%+ from early 2022
- $400M of revenue in new M&A, 1% dilutive to EBITDA; mostly focused on tuck-in acquisitions rather than splashy acquisitions
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