(Reuters) -HCA Healthcare raised its 2025 profit forecast on Friday as the hospital operator expects sustained demand for medical procedures to cushion a hit from U.S. President Donald Trump’s potential tariffs.
Health insurers have flagged higher-than-anticipated costs in their individual plans that come under the Affordable Care Act, also known as Obamacare, and Medicaid plans for low-income people.
Analysts have said they expect this trend to benefit hospital operators, but warned that proposed federal budget cuts could hit their earnings.
The hospital chain operator said its annual forecast includes the current and future impacts of policy developments, including the Trump administration’s tariffs on imports.
Last quarter, HCA said it expects “tariff risk” for 2025 to be manageable due to its long-term contracts that allow it to buy supplies such as medical equipment at a fixed price and from domestic sources.
Revenue from same-facilities per equivalent admission, which considers admissions within the same hospitals over a particular period, increased 4% during the quarter compared with last year.
However, same-facility inpatient and outpatient surgeries decreased in the quarter ended June 30.
HCA earned second-quarter adjusted profit of $6.84 per share, beating analysts’ estimates of $6.25 per share, according to data compiled by LSEG.
The company expects 2025 profit to be about $25.50 to $27 per share, compared with its previous forecast of $24.05 to $25.85 per share.
(Reporting by Siddhi Mahatole and Christy Santhosh in Bengaluru; Editing by Leroy Leo)
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