SEC Filings for HCA Healthcare, Inc.

Select the most recent $10-$Q filing and review the contents. In particular, review the section on revenue amounts from third$-$party payers $($i$.$e$.$ Medicare, Medicaid, Managed Care and Insurers, etc.$)$

Write a $2-$ to $3-$page analysis of the sources of revenue. Be sure to define each source of revenue and describe the advantages and disadvantages of each source from the perspective of the healthcare manager. Our revenues are based upon the estimated amounts we expect to be entitled to receive from patients and third$-$party payers. Estimates of contractual adjustments under managed care and commercial insurance plans are based on the payment terms specified in the related contractual agreements. Revenues related to uninsured patients and uninsured copayment and deductible amounts for patients who have health care coverage may have discounts applied $($uninsured and other discounts$).$ We also record estimated implicit price concessions $($based primarily on historical collection experience$)$ related to uninsured accounts to record these revenues at the estimated amounts we expect to collect. Patients treated at our hospitals for non$-$elective care, with income at or below $400\%$ of the federal poverty level, are eligible for charity care. Because we do not pursue the collection of amounts determined to qualify as charity care, they are not reported in revenues. Our revenues by primary third$-$party payer classification and other $($including uninsured patients$)$ for the quarters and nine months ended September $30,2023$ and $2022$ are summarized in the following table $($dollars in millions$)$: Quarter $2023$ Ratio $2022$ Ratio Medicare $ $2,56015\mathrm{.}8\%$ $ $2,56917\mathrm{.}2\%$ Managed Medicare $2,53515\mathrm{.}62,22914\mathrm{.}9$ Medicaid $1,0016\mathrm{.}27975\mathrm{.}3$ Managed Medicaid $1,0396\mathrm{.}49396\mathrm{.}3$ Managed care and insurers $7,68747\mathrm{.}47,18447\mathrm{.}9$ International $($managed care and insurers$)3752\mathrm{.}33112\mathrm{.}1$ Other $1,0166\mathrm{.}39426\mathrm{.}3$ Revenues $ $16,213100\mathrm{.}0\%$ $ $14,971100\mathrm{.}0\%$ Nine Months $2023$ Ratio $2022$ Ratio Medicare $ $7,86516\mathrm{.}5\%$ $ $7,79017\mathrm{.}4\%$ Managed Medicare $7,63516\mathrm{.}06,81315\mathrm{.}2$ Medicaid $2,4785\mathrm{.}21,9874\mathrm{.}4$ Managed Medicaid $2,8466\mathrm{.}03,0036\mathrm{.}7$ Managed care and insurers $23,14048\mathrm{.}521,48048\mathrm{.}1$ International $($managed care and insurers$)1,1272\mathrm{.}49922\mathrm{.}2$ Other $2,5745\mathrm{.}42,6716\mathrm{.}0$ Revenues $ $47,665100\mathrm{.}0\%$ $ $44,736100\mathrm{.}0\%$ To quantify the total impact of the trends related to uninsured patient accounts, we believe it is beneficial to view comprehensive uncompensated care, which is comprised of charity care, uninsured discounts and implicit price concessions. A summary of the estimated cost of complete uncompensated care for the quarters and nine months ended September $30,2023$ and $2022$ follows $($dollars in millions$)$: Quarter Nine Months $2023202220232022$ Patient care costs $($salaries and benefits, supplies, other operating expenses and depreciation and amortization$)$ $ $14,121$ $ $12,828$ $ $40,839$ $ $38,096$ Cost$-$to$-$charges ratio $($patient care costs as percentage of gross patient charges$)10\mathrm{.}9\%11\mathrm{.}2\%10\mathrm{.}6\%11\mathrm{.}2\%$ Total uncompensated care $ $9,042$ $ $8,050$ $ $25,516$ $ $23,512$ Multiply by the cost$-$to$-$charges ratio $10\mathrm{.}9\%11\mathrm{.}2\%10\mathrm{.}6\%11\mathrm{.}2\%$ Estimated cost of total uncompensated care $ $975$ $ $901$ $ $2,705$ $ $2,63$