Health Care
HCA Healthcare's Q2 FY2026 revenues rose 8.7% to $20.230B and net income attributable to HCA grew 2.8% to $1.699B ($7.62 diluted EPS, up 11.6% due to share repurchases), boosted by $1.372B of Florida Medicaid directed payment revenue but partially offset by rising uncompensated care and a $1.875B decline in operating cash flow.
Key risk: Regulatory changes to Medicaid Directed and Supplemental Payment (SDP) programs
The FBA mandates CMS to cap SDP payment rates at Medicare levels (instead of average commercial rates) for rating periods beginning on/after July 4, 2025, with grandfathered arrangements subject to phase-down starting January 1, 2028. HCA is unable to predict the timing or extent of future CMS approvals or the amount of resulting revenue recognition, creating uncertainty around a material revenue source (Florida directed payment program alone added $1.372B in Q2 2026).
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