Why did HCA's net profit decline in late 2024?

HCA's net profit declined in late 2024 primarily due to **Hurricane-Related Expenses** and **Facility Sales Losses**, despite strong revenue growth and improved operational performance.

1. **Hurricane Impact**: The financial repercussions of Hurricanes Helene and Milton had a significant negative influence, amounting to an estimated $200 million. These natural disasters disrupted operations, particularly in North Carolina and Florida, and resulted in a per-share impact of $0.60 on diluted earnings.
2. **Facility Sales Losses**: There was a decrease in net income due to facility sales losses, which contributed to the decline in net income. This is a one-time event and does not reflect ongoing business performance.
3. **Salaries and Benefits Expenses**: Increased salaries and benefits expenses, which rose by 6.3% year-over-year, also played a role in the decreased net profit margin.

In summary, the decline in net profit was primarily due to the financial impact of hurricanes and facility sales losses, along with increased operational expenses. Despite these challenges, HCA reported strong revenue growth and continued to invest in strategic initiatives such as network development and technology integration, which contributed to a 9% increase in adjusted EBITDA.