How did HCA's expense management change in 2024?

HCA Healthcare Inc.'s expense management in 2024 showed a notable improvement in managing operating expenses, which positively impacted the company's financial performance.

1. **Operating Expenses**: HCA's operating expenses for 2024 were $13.9 billion, which represented an 8.9% increase year-over-year. This increase was primarily due to higher salaries and benefits, supplies, and other operating expenses. Despite the rise, the company's expense management remained efficient.
2. **Net Income**: The company's net income for 2024 was $6.66 billion. This figure indicates a strong financial performance, especially considering the increase in operating expenses.

|code|Ticker|Name|Date|Net Interest Expenses YoY|Net Interest Expenses|market_code|
|---|---|---|---|---|---|---|
|HCA|HCA.N|HCA Healthcare|2024 Q1|6.8893528183716075|5.12E8|169|
|HCA|HCA.N|HCA Healthcare|2024 Q2|4.329896907216495|5.06E8|169|
|HCA|HCA.N|HCA Healthcare|2024 Q3|6.625258799171843|5.15E8|169|
|HCA|HCA.N|HCA Healthcare|2024 Q4|7.535641547861507|5.28E8|169|

3. **Expense Control**: HCA managed to improve its operating margins by 100 basis points year-over-year, which is a positive sign for effective expense control. The company also saw improvements in labor costs, with labor costs improving 200 basis points as a percent of revenue from the prior year. Additionally, contract labor costs declined by 25.7% from the prior year, representing only 4.8% of total labor costs.
4. **Comparative Analysis**: When compared to the previous year, HCA's expense management in 2024 was more effective. For instance, in the second quarter of 2023, salaries and benefits, supplies, and other operating expenses had escalated by 6.6% year-over-year, which was slightly higher than the estimate. In 2024, these expenses increased by 8.9% year-over-year, which was still within the company's control and did not significantly impact the bottom line.
5. **Financial Performance**: HCA's financial performance in 2024 was strong, with a reported adjusted earnings per share (EPS) of $5.50, which represented a 28% increase year-over-year. The company's revenues also improved, amounting to $17.5 billion, which reflected a 10.3% increase year-over-year. These improvements underscore the effectiveness of HCA's expense management in 2024.

In conclusion, HCA Healthcare Inc. managed its expenses effectively in 2024, despite the increase in operating expenses. The company's net income showed a robust growth, and its operating margins and labor costs improved significantly. This demonstrates that HCA has strong financial control measures in place, which have contributed to its overall financial health and performance.