HCA, Tenet Saw Increased EBITDA in Q1 While Nonprofit Hospitals Continued to Struggle

According to Moody's report, in the first quarter of 2023, certain for-profit health systems, notably HCA Healthcare and Tenet Healthcare, demonstrated significant improvements in their EBITDA, owing to a decline in labor costs. This financial enhancement was particularly pronounced among the two largest for-profit healthcare chains. HCA Healthcare, for instance, recorded an impressive growth of nearly 8%, resulting in an EBITDA of $3.2 billion. Similarly, operators in the behavioral health sector, such as Universal Health Services and Acadia Healthcare, experienced an increase in their earnings. These entities were less susceptible to the adverse effects of labor cost fluctuations, partially due to a favorable payer mix and relatively milder nursing shortages in urban areas. These developments underscore the financial resilience and adaptability of for-profit health systems in response to shifting labor dynamics, ultimately contributing to the positive EBITDA trends observed in the first quarter of 2023.