8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): August 2, 2007 (August 2, 2007)

HCA INC.

(Exact name of registrant as specified in its charter)

Delaware	001-11239	75-2497104
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer
		Identification No.)

One Park Plaza, Nashville, Tennessee	37203
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (615) 344-9551

Not Applicable

(Former name or former address, if changed since last report)

     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

     o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

     o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

     o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

     o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

	Item 2.02. Results of Operations and Financial Condition
	Item 7.01. Regulation FD Disclosure
	Item 9.01. Financial Statements and Exhibits
SIGNATURES
EXHIBIT INDEX
Ex-99.1 Press Release dated August 2, 2007

Item 2.02. Results of Operations and Financial Condition

     On August 2, 2007, HCA Inc. (the “Company”) issued a press release announcing, among other matters, its results of operations for the second quarter ended June 30, 2007, the text of which is set forth as Exhibit 99.1.

Item 7.01. Regulation FD Disclosure

     On August 2, the Company issued a press release announcing, among other matters, its results of operations for the second quarter ended June 30, 2007, the text of which is set forth as Exhibit 99.1.

Item 9.01. Financial Statements and Exhibits

(d)

Exhibit
Number	Exhibit Title
99.1	Press Release dated August 2, 2007

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

HCA INC.
By:	/s/ R. Milton Johnson
	R. Milton Johnson
	Executive Vice President and Chief Financial Officer

Date: August 2, 2007

EXHIBIT INDEX

Exhibit
Number	Exhibit Title
99.1	Press Release dated August 2, 2007

EX-99.1

EXHIBIT 99.1

news

	FOR IMMEDIATE RELEASE
INVESTOR CONTACT:	MEDIA CONTACT:
Mark Kimbrough	Ed Fishbough
615-344-2688	615-344-2810

HCA Reports Second Quarter 2007 Results

Nashville, Tenn., August 2, 2007 — HCA today announced financial and operating results for the second quarter ended June 30, 2007.

Second Quarter Summary:

§	Revenues increased 5.8 percent to $6.7 billion.
§	Adjusted EBITDA totaled $1.180 billion, an increase of 9.7 percent over the prior year.
§	Net income totaled $116 million, compared to $295 million in the prior year.
§	Interest expense increased to $557 million, up from $196 million in the prior year.
§	Same facility admissions decreased 1.8 percent and same facility equivalent admissions decreased 1.5 percent.
§	Same facility revenue per equivalent admission increased 10.0 percent.

Revenues for the second quarter totaled $6.7 billion, compared to $6.4 billion in the second quarter of 2006. Adjusted EBITDA in the quarter totaled $1.180 billion, compared to $1.076 billion in the previous year’s second quarter. A table describing adjusted EBITDA and reconciling net income to adjusted EBITDA is included in this release. Net income for the second quarter of 2007 totaled $116 million, compared to $295 million in the prior year’s second quarter.

HCA’s adjusted EBITDA margin improved to 17.5 percent of revenues in the second quarter of 2007 compared to 16.9 percent of revenues in the same period of 2006, primarily due to improvements in labor and supply costs. Provisions for losses related to professional liability risks were $44 million and $8 million for the second quarters of 2007 and 2006, respectively. The Company recorded an $85 million reduction to professional liability reserves during the second quarter of 2006 to reflect the recognition by external actuaries of improving claim trends at our facilities. HCA has considered the expectation of continued favorable claims trends in estimating professional liability expense accruals in 2007.

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Due primarily to the transactions related to the recapitalization of the Company in November 2006, interest expense increased to $557 million in the second quarter of 2007, compared to $196 million in the same period of 2006.

Same facility admissions and same facility equivalent admissions decreased 1.8 percent and 1.5 percent, respectively, in the second quarter of 2007 compared to the prior year’s second quarter. Same facility uninsured and charity admissions increased 9.9 percent in the quarter compared to the prior year period. Same facility revenue per equivalent admission increased 10.0 percent in the second quarter of 2007 compared to the second quarter of 2006. Same facility charity and uninsured discounts totaled $709 million in the second quarter of 2007 compared to $588 million in the same quarter of 2006.

As of June 30 2007, HCA’s balance sheet reflected cash and cash equivalents of $354 million, total debt of $28.1 billion, and total assets of $23.7 billion. The Company’s total debt increased by $193 million during the quarter ended June 30, 2007 while, year-to-date, total debt decreased by $312 million.

Revenues for the six months ended June 30, 2007 were $13.4 billion compared to $12.8 billion for the same six month period of 2006. Adjusted EBITDA totaled $2.456 billion for the first six months of 2007 versus $2.280 billion for the same period of 2006. The Company’s net income was $296 million for the first half of 2007 compared to $674 million for the same period of 2006.

On July 20, 2007, HCA completed the sale of its two Geneva, Switzerland hospitals for approximately $394 million. Proceeds were used to reduce the Company’s European Term Loan.

As of June 30, 2007, HCA operated 172 hospitals and 107 freestanding surgery centers (including eight hospitals and nine freestanding surgery centers operated through equity method joint ventures).

Earnings Conference Call

HCA will host a conference call for investors at 9:00 a.m. Central Daylight Time today. All interested investors are invited to access a live audio broadcast of the call via webcast. The broadcast also will be available on a replay basis beginning this afternoon. The webcast can be accessed at: http://www.videonewswire.com/event.asp?id=41293 or through the Company’s Investor Relations web page, www.hcahealthcare.com.

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FORWARD LOOKING STATEMENTS

This press release contains forward-looking statements based on current management expectations. Those forward-looking statements include all statements other than those made solely with respect to historical fact. Numerous risks, uncertainties and other factors may cause actual results to differ materially from those expressed in any forward-looking statements. These factors include, but are not limited to, (1) the ability to recognize the benefits of the recapitalization; (2) the impact of the substantial indebtedness incurred to finance the recapitalization and the effect of the recapitalization on our customer, employee and other relationships; (3) increases in the amount and risk of collectability of uninsured accounts, and deductibles and copayment amounts for insured accounts; (4) the ability to achieve operating and financial targets, attain expected levels of patient volumes and control the costs of providing services; (5) possible changes in the Medicare, Medicaid and other state programs that may impact reimbursements to health care providers and insurers; (6) the highly competitive nature of the health care business; (7) changes in revenue mix and the ability to enter into and renew managed care provider agreements on acceptable terms; (8) the efforts of insurers, health care providers and others to contain health care costs; (9) the outcome of our continuing efforts to monitor, maintain and comply with appropriate laws, regulations, policies and procedures and our corporate integrity agreement with the government; (10) changes in federal, state or local regulations affecting the health care industry; (11) the ability to attract and retain qualified management and personnel, including affiliated physicians, nurses and medical support personnel; (12) the outcome of certain class action and derivative litigation filed with respect to us; (13) the possible enactment of federal or state health care reform; (14) the availability and terms of capital to fund the expansion of our business; (15) the continuing impact of hurricane damage in certain markets and the ability to obtain recoveries under our insurance policies; (16) changes in accounting practices; (17) changes in general economic conditions; (18) future divestitures which may result in charges; (19) changes in business strategy or development plans; (20) the outcome of pending and any future tax audits, appeals and litigation associated with our tax positions; (21) delays in receiving payment for services provided; (22) potential liabilities and other claims that may be asserted against us, and (23) other risk factors described in our Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. Many of the factors that will determine our future results are beyond our ability to control or predict. In light of the significant uncertainties inherent in the forward-looking statements contained herein, readers should not place undue reliance on forward-looking statements, which reflect management’s views only as of the date hereof. We undertake no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

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HCA Inc.
Consolidated Income Statements
Second Quarter
(Dollars in millions)

	2007						2006
	Amount			Ratio			Amount			Ratio
Revenues	$	6,729			100.0	%	$	6,360			100.0	%
Salaries and benefits		2,654			39.4			2,605			41.0
Supplies		1,096			16.3			1,091			17.2
Other operating expenses		1,101			16.4			983			15.4
Provision for doubtful accounts		753			11.2			677			10.6
Gains on investments		(7	)		(0.1	)		(25	)		(0.4	)
Equity in earnings of affiliates		(48	)		(0.7	)		(47	)		(0.7	)
Depreciation and amortization		361			5.3			352			5.5
Interest expense		557			8.3			196			3.1
Gains on sales of facilities		(11	)		(0.2	)		(5	)		(0.1	)
Impairment of long-lived assets		24			0.4			—			—
		6,480			96.3			5,827			91.6
Income before minority interests and income taxes		249			3.7			533			8.4
Minority interests in earnings of consolidated entities		55			0.8			46			0.8
Income before income taxes		194			2.9			487			7.6
Provision for income taxes		78			1.2			192			3.0
Net income	$	116			1.7		$	295			4.6

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HCA Inc.
Consolidated Income Statements
For the Six Months Ended June 30, 2007 and 2006
(Dollars in millions)

	2007						2006
	Amount			Ratio			Amount			Ratio
Revenues	$	13,406			100.0	%	$	12,775			100.0	%
Salaries and benefits		5,301			39.5			5,216			40.8
Supplies		2,199			16.4			2,205			17.3
Other operating expenses		2,118			15.8			2,009			15.7
Provision for doubtful accounts		1,444			10.8			1,273			10.0
Gains on investments		(7	)		—			(100	)		(0.8	)
Equity in earnings of affiliates		(105	)		(0.8	)		(108	)		(0.8	)
Depreciation and amortization		716			5.3			697			5.4
Interest expense		1,114			8.3			382			3.0
Gains on sales of facilities		(16	)		(0.1	)		(5	)		—
Impairment of long-lived assets		24			0.2			—			—
		12,788			95.4			11,569			90.6
Income before minority interests and income taxes		618			4.6			1,206			9.4
Minority interests in earnings of consolidated entities		116			0.9			101			0.8
Income before income taxes		502			3.7			1,105			8.6
Provision for income taxes		206			1.5			431			3.3
Net income	$	296			2.2		$	674			5.3

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HCA Inc.
Supplemental Operating Results Summary
(Dollars in millions)

							For the Six Months
	Second Quarter						Ended June 30,
	2007			2006				2007			2006
Revenues	$	6,729		$	6,360		$	13,406		$	12,775
Net income	$	116		$	295		$	296		$	674
Gains on sales of facilities (net of tax)		(8	)		(4	)		(10	)		(4	)
Impairment of long-lived assets (net of tax)		15			—			15			—
Net income, excluding gains on sales of facilities and impairment of long-lived assets		123			291			301			670
Depreciation and amortization		361			352			716			697
Interest expense		557			196			1,114			382
Minority interests in earnings of consolidated entities		55			46			116			101
Provision for income taxes		84			191			209			430
Adjusted EBITDA (a)	$	1,180		$	1,076		$	2,456		$	2,280

(a)	Net income, excluding gains on sales of facilities and impairment of long-lived assets and adjusted EBITDA are non-GAAP financial measures. We believe that net income, excluding gains on sales of facilities and impairment of long-lived assets and adjusted EBITDA are important measures that supplement discussions and analysis of our results of operations. We believe that it is useful to investors to provide disclosures of our results of operations on the same basis as that used by management. Management relies upon net income, excluding gains on sales of facilities and impairment of long-lived assets and adjusted EBITDA as the primary measures to review and assess operating performance of its hospital facilities and their management teams.
	Management and investors review both the overall performance (including net income, excluding gains on sales of facilities and impairment of long-lived assets and GAAP net income) and operating performance (adjusted EBITDA) of our health care facilities. Adjusted EBITDA and the adjusted EBITDA margin (adjusted EBITDA divided by revenues) are utilized by management and investors to compare our current operating results with the corresponding periods during the previous year and to compare our operating results with other companies in the health care industry. It is reasonable to expect that gains on sales of facilities and impairments of long-lived assets will occur in future periods, but the amounts recognized can vary significantly from quarter to quarter, do not directly relate to the ongoing operations of our health care facilities and complicate quarterly comparisons of our results of operations and operations comparisons with other health care companies.
	Net income, excluding gains on sales of facilities and impairment of long-lived assets and adjusted EBITDA are not measures of financial performance under accounting principles generally accepted in the United States, and should not be considered as alternatives to net income as a measure of operating performance or cash flows from operating, investing and financing activities as a measure of liquidity. Because net income, excluding gains on sales of facilities and impairment of long-lived assets and adjusted EBITDA are not measurements determined in accordance with generally accepted accounting principles and are susceptible to varying calculations, net income, excluding gains on sales of facilities and impairment of long-lived assets and adjusted EBITDA, as presented, may not be comparable to other similarly titled measures presented by other companies.

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HCA Inc.
Condensed Consolidated Balance Sheets
(Dollars in millions)

	June 30,			March 31,			December 31,
	2007			2007			2006
ASSETS
Current assets:
Cash and cash equivalents	$	354		$	409		$	634
Accounts receivable, net		3,798			3,859			3,705
Inventories		689			676			669
Deferred income taxes		466			452			476
Other		639			522			594
Total current assets		5,946			5,918			6,078
Property and equipment, at cost		22,345			22,163			21,907
Accumulated depreciation		(10,801	)		(10,530	)		(10,238	)
		11,544			11,633			11,669
Investments of insurance subsidiary		1,693			1,729			1,886
Investments in and advances to affiliates		672			684			679
Goodwill		2,631			2,633			2,601
Deferred loan costs		584			603			614
Other		634			443			148
	$	23,704		$	23,643		$	23,675
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable	$	1,204		$	1,258		$	1,415
Accrued salaries		674			647			675
Other accrued expenses		1,171			1,399			1,193
Long-term debt due within one year		304			286			293
Total current liabilities		3,353			3,590			3,576
Long-term debt		27,792			27,617			28,115
Professional liability risks		1,276			1,300			1,309
Deferred taxes and other liabilities		1,132			1,128			1,017
Minority interests in equity of consolidated entities		891			959			907
Equity securities with contingent redemption rights		165			165			125
Stockholders’ deficit		(10,905	)		(11,116	)		(11,374	)
	$	23,704		$	23,643		$	23,675

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HCA Inc.
Consolidated Statements of Cash Flows
For the Six Months Ended June 30, 2007 and 2006
(Dollars in millions)

	2007			2006
Cash flows from operating activities:
Net income	$	296		$	674
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for doubtful accounts		1,444			1,273
Depreciation and amortization		716			697
Income taxes		(21	)		(408	)
Gains on sales of facilities		(16	)		(5	)
Impairment of long-lived assets		24			—
Change in operating assets and liabilities		(2,100	)		(1,597	)
Change in minority interests		16			61
Share-based compensation		11			44
Other		36			(7	)
Net cash provided by operating activities		406			732
Cash flows from investing activities:
Purchase of property and equipment		(675	)		(820	)
Acquisition of hospitals and health care entities		(10	)		(105	)
Disposal of hospitals and health care entities		65			291
Change in investments		192			(150	)
Other		10			(11	)
Net cash used in investing activities		(418	)		(795	)
Cash flows from financing activities:
Issuance of long-term debt		2			1,400
Net change in revolving bank credit facility		(210	)		945
Repayment of long-term debt		(148	)		(1,162	)
Repurchase of common stock		—			(653	)
Issuance of common stock		100			76
Payment of cash dividends		—			(131	)
Other		(12	)		(12	)
Net cash (used in) provided by financing activities		(268	)		463
Change in cash and cash equivalents		(280	)		400
Cash and cash equivalents at beginning of period		634			336
Cash and cash equivalents at end of period	$	354		$	736
Interest payments	$	1,092		$	351
Income tax payments, net of refunds	$	227		$	810

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HCA Inc.
Operating Statistics

							For the Six Months
	Second Quarter						Ended June 30,
	2007			2006			2007			2006
Consolidating Hospitals:
Number of Hospitals		164			176			164			176
Weighted Average Licensed Beds		39,222			41,263			39,245			41,259
Licensed Beds at End of Period		39,175			41,300			39,175			41,300
Reported:
Admissions		383,200			402,900			787,000			823,900
% Change		-4.9	%					-4.5	%
Equivalent Admissions		582,500			609,900			1,183,700			1,235,900
% Change		-4.5	%					-4.2	%
Revenue per Equivalent Admission	$	11,552		$	10,429		$	11,325		$	10,336
% Change		10.8	%					9.6	%
Inpatient Revenue per Admission	$	10,900		$	9,765		$	10,638		$	9,678
% Change		11.6	%					9.9	%
Patient Days		1,899,500			1,973,000			3,921,000			4,063,500
Equivalent Patient Days		2,887,100			2,986,700			5,897,100			6,095,300
Inpatient Surgery Cases		131,200			134,000			261,700			269,300
% Change		-2.1	%					-2.8	%
Outpatient Surgery Cases		204,200			210,700			408,400			423,600
% Change		-3.1	%					-3.6	%
Emergency Room Visits		1,258,700			1,325,600			2,553,900			2,658,100
% Change		-5.0	%					-3.9	%
Outpatient Revenues as a Percentage of Patient Revenues		36.8	%		36.9	%		36.4	%		36.3	%
Average Length of Stay		5.0			4.9			5.0			4.9
Occupancy		53.2	%		52.5	%		55.2	%		54.4	%
Equivalent Occupancy		80.9	%		79.5	%		83.0	%		81.6	%
Same Facility:
Admissions		378,100			384,900			776,500			788,700
% Change		-1.8	%					-1.6	%
Equivalent Admissions		572,500			581,300			1,163,100			1,179,900
% Change		-1.5	%					-1.4	%
Revenue per Equivalent Admission	$	11,489		$	10,441		$	11,277		$	10,341
% Change		10.0	%					9.1	%
Inpatient Revenue per Admission	$	10,880		$	9,838		$	10,628		$	9,749
% Change		10.6	%					9.0	%
Inpatient Surgery Cases		129,200			130,000			258,800			260,700
% Change		-0.7	%					-0.7	%
Outpatient Surgery Cases		199,100			201,500			397,300			403,000
% Change		-1.2	%					-1.4	%
Emergency Room Visits		1,241,300			1,259,400			2,518,400			2,531,000
% Change		-1.4	%					-0.5	%
Number of Consolidating and Nonconsolidating (50/50 Equity Joint Ventures) Hospitals:
Consolidating		164			176			164			176
Nonconsolidating (50/50 Equity Joint Ventures)		8			7			8			7
Total Number of Hospitals		172			183			172			183

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