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): February 7, 2008 (February 7, 2008)

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 02/07/08

Item 2.02. Results of Operations and Financial Condition

     On February 7, 2008, HCA Inc. (the “Company”) issued a press release announcing, among other matters, its results of operations for the fourth quarter and fiscal year ended December 31, 2007, the text of which is set forth as Exhibit 99.1.

Item 7.01. Regulation FD Disclosure

     On February 7, 2008, the Company issued a press release announcing, among other matters, its results of operations for the fourth quarter and fiscal year ended December 31, 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 February 7, 2008

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: February 7, 2008

EXHIBIT INDEX

Exhibit
Number	Exhibit Title
99.1	Press Release dated February 7, 2008

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 Fourth Quarter — Year End 2007 Results

Nashville, Tenn., February 7, 2008 — HCA today announced financial and operating results for the fourth quarter and year ended December 31, 2007.

Fourth Quarter Summary:

§	Revenues increased 6.1 percent to $6.883 billion.
§	Net income totaled $278 million, compared to $122 million in the prior year.
§	Adjusted EBITDA totaled $1.153 billion, compared to $1.271 billion in the prior year.
§	Provision for doubtful accounts increased to $912 million, from $710 million in the prior year.
§	Interest expense increased to $541 million, from $373 million in the prior year.
§	Same facility admissions decreased 1.0 percent, and same facility equivalent admissions increased 0.3 percent.
§	Same facility revenue per equivalent admission increased 6.6 percent.

“We were pleased with the 2007 results for the Company,” stated Jack O. Bovender, Jr., HCA’s Chairman and CEO. “Our dedication to the communities we serve, physicians and patients remains our top priority as we begin a new year,” concluded Bovender.

Revenues for the fourth quarter totaled $6.883 billion, compared to $6.489 billion in the fourth quarter of 2006. Adjusted EBITDA in the quarter totaled $1.153 billion, compared to $1.271 billion in the previous year’s fourth quarter. A table describing adjusted EBITDA and reconciling net income to adjusted EBITDA for these periods is included in this release. Net income for the fourth quarter of 2007 totaled $278 million, compared to $122 million in the prior year’s fourth quarter. Results for the fourth quarter of 2007 include gains on sales of facilities of $139 million and gains on investments of $2 million. Fourth quarter 2006 results include transaction costs of $433 million related to the November 2006 recapitalization, gains on sales of facilities of $159 million, an asset impairment charge of $24 million and gains on investments of $103 million.

The provision for doubtful accounts increased to $912 million, or 13.2 percent of revenues, in the fourth quarter of 2007 from $710 million, or 10.9 percent of revenues, in the fourth quarter of 2006. At December 31, 2007, our allowance for doubtful accounts represented approximately 89 percent of the $4.825 billion patient due accounts receivable balance. At December 31, 2006, the allowance for doubtful accounts was approximately 86 percent of the $3.972 billion patient due accounts receivable balance.

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Interest expense increased to $541 million in the fourth quarter of 2007, compared to $373 million in the same period of 2006, due primarily to the increased debt incurred to complete the November 2006 recapitalization. The provision for income taxes for the fourth quarter was reduced, due primarily to the recognition of certain state tax benefits.

Same facility admissions decreased 1.0 percent and same facility equivalent admissions increased 0.3 percent in the fourth quarter of 2007 compared to the prior year’s fourth quarter. Same facility revenue per equivalent admission increased 6.6 percent in the fourth quarter of 2007 compared to the fourth quarter of 2006. Same facility charity and uninsured discounts totaled $796 million in the fourth quarter of 2007 compared to $622 million in the fourth quarter of 2006.

Revenues for the year ended December 31, 2007 increased 5.4 percent to $26.858 billion compared to $25.477 billion in 2006. Adjusted EBITDA for 2007 totaled $4.592 billion compared to $4.470 billion in the prior year. Net income totaled $874 million for 2007 compared to $1.036 billion for 2006. The 2007 results include gains on investments of $8 million, gains on sales of facilities of $471 million and an impairment of long-lived assets of $24 million. The 2006 results include gains on investments of $243 million, gains on sales of facilities of $205 million, an impairment of long-lived assets of $24 million and $442 million of transaction costs related to the recapitalization.

As of December 31, 2007, HCA’s balance sheet reflected cash and cash equivalents of $393 million, total debt of $27.308 billion, and total assets of $24.025 billion. The Company’s total debt balance decreased by $1.100 billion during 2007.

The 2007 gains on sales of facilities included the divestitures of three hospitals for proceeds totaling $661 million and the recognition of a net pretax gain of $443 million, or $272 million net-of-tax. Proceeds were used to reduce debt.

During November 2006, the Company’s shareholders approved a merger with an acquiring consortium led by Bain Capital, Kohlberg Kravis Roberts & Co. and Merrill Lynch Global Private Equity, along with HCA founder, Dr. Thomas F. Frist, Jr. and certain members of his family and HCA management in which a cash payment of $51.00 per share was made for each share of HCA common stock held. The merger was accounted for as a recapitalization transaction.

The Company also announced today it had commenced a cash tender offer to purchase up to $500 million of aggregate principal amount of certain series of its outstanding debt securities. The Company expects the completion of the tender offer will reduce its interest expense. The Company intends to finance the purchase of the debt with borrowings under its revolving credit facilities. During the fourth quarter of 2007, the application of proceeds from asset sales contributed to a net reduction of $150 million in borrowings under the revolving credit facilities. For information regarding the tender offer, please refer to the separate press release issued by the Company today regarding the tender offer.

As of December 31, 2007, HCA operated 169 hospitals and 108 freestanding surgery centers (including eight hospitals and nine freestanding surgery centers operated through equity method joint ventures).

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Earnings Conference Call

HCA will host a conference call for investors at 9:00 a.m. Central Standard 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=45107 or through the Company’s Investor Relations web page, www.hcahealthcare.com.

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; (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, including Medicaid supplemental payments pursuant to upper payment limit 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 laws or regulations affecting the health care industry; (11) increases in wages and the ability to attract and retain qualified management and personnel, including affiliated physicians, nurses and medical and technical support personnel; (12) the possible enactment of federal or state health care reform; (13) the availability and terms of capital to fund the expansion of our business or improvements to our existing facilities; (14) changes in accounting practices; (15) changes in general economic conditions nationally and regionally in our markets; (16) future divestitures which may result in charges; (17) changes in business strategy or development plans; (18) the outcome of pending and any future tax audits, appeals and litigation associated with our tax positions; (19) delays in receiving payment for services provided; (20) potential liabilities and other claims that may be asserted against us; (21) the ability to complete the announced debt tender offer and reduce interest expense; and (22) 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.

All references to “Company” and “HCA” as used throughout this document refer to HCA Inc. and its affiliates.

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

	2007						2006
	Amount			Ratio			Amount			Ratio
Revenues	$	6,883			100.0	%	$	6,489			100.0	%
Salaries and benefits		2,712			39.4			2,593			40.0
Supplies		1,111			16.2			1,071			16.5
Other operating expenses		1,047			15.2			993			15.3
Provision for doubtful accounts		912			13.2			710			10.9
Gains on investments		(2	)		—			(103	)		(1.6	)
Equity in earnings of affiliates		(50	)		(0.7	)		(46	)		(0.7	)
Depreciation and amortization		354			5.0			346			5.4
Interest expense		541			7.9			373			5.7
Gains on sales of facilities		(139	)		(2.0	)		(159	)		(2.5	)
Impairment of long-lived assets		—			—			24			0.4
Transaction costs		—			—			433			6.7
		6,486			94.2			6,235			96.1
Income before minority interests and income taxes		397			5.8			254			3.9
Minority interests in earnings of consolidated entities		48			0.7			56			0.8
Income before income taxes		349			5.1			198			3.1
Provision for income taxes		71			1.1			76			1.2
Net income	$	278			4.0		$	122			1.9

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HCA Inc.
Consolidated Income Statements
For the Years Ended December 31, 2007 and 2006
(Dollars in millions)

	2007						2006
	Amount			Ratio			Amount			Ratio
Revenues	$	26,858			100.0	%	$	25,477			100.0	%
Salaries and benefits		10,714			39.9			10,409			40.9
Supplies		4,395			16.4			4,322			17.0
Other operating expenses		4,241			15.7			4,056			16.0
Provision for doubtful accounts		3,130			11.7			2,660			10.4
Gains on investments		(8	)		—			(243	)		(1.0	)
Equity in earnings of affiliates		(206	)		(0.8	)		(197	)		(0.8	)
Depreciation and amortization		1,426			5.4			1,391			5.5
Interest expense		2,215			8.2			955			3.7
Gains on sales of facilities		(471	)		(1.8	)		(205	)		(0.8	)
Impairment of long-lived assets		24			0.1			24			0.1
Transaction costs		—			—			442			1.7
		25,460			94.8			23,614			92.7
Income before minority interests and income taxes		1,398			5.2			1,863			7.3
Minority interests in earnings of consolidated entities		208			0.8			201			0.8
Income before income taxes		1,190			4.4			1,662			6.5
Provision for income taxes		316			1.1			626			2.4
Net income	$	874			3.3		$	1,036			4.1

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

							For the Years
	Fourth Quarter						Ended December 31,
	2007			2006			2007			2006
Revenues	$	6,883		$	6,489		$	26,858		$	25,477
Net income	$	278		$	122		$	874		$	1,036
Gains on sales of facilities (net of tax)		(88	)		(74	)		(291	)		(103	)
Impairment of long-lived assets (net of tax)		—			15			15			15
Transaction costs (net of tax)		—			303			—			309
Net income, excluding gains on sales of facilities, impairment of long- lived assets and transaction costs		190			366			598			1,257
Depreciation and amortization		354			346			1,426			1,391
Interest expense		541			373			2,215			955
Minority interests in earnings of consolidated entities		48			56			208			201
Provision for income taxes		20			130			145			666
Adjusted EBITDA (a)	$	1,153		$	1,271		$	4,592		$	4,470

(a)	Net income, excluding gains on sales of facilities, impairment of long-lived assets and transaction costs, and adjusted EBITDA are non-GAAP financial measures. We believe that net income, excluding gains on sales of facilities, impairment of long-lived assets and transaction costs, 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, impairment of long-lived assets and transaction costs, 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, impairment of long-lived assets and transaction costs, 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, impairment of long-lived assets and transaction costs, 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 measures of operating performance or alternatives to cash flows from operating, investing and financing activities as measures of liquidity. Because net income, excluding gains on sales of facilities, impairment of long-lived assets and transaction costs, 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, impairment of long-lived assets and transaction costs, and adjusted EBITDA, as presented, may not be comparable to other similarly titled measures presented by other companies.

6

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

	December 31,			September 30,			December 31,
	2007			2007			2006
ASSETS
Current assets:
Cash and cash equivalents	$	393		$	347		$	634
Accounts receivable, net		3,895			3,857			3,705
Inventories		710			689			669
Deferred income taxes		592			487			476
Other		615			649			594
Total current assets		6,205			6,029			6,078
Property and equipment, at cost		22,579			22,449			21,907
Accumulated depreciation		(11,137	)		(10,999	)		(10,238	)
		11,442			11,450			11,669
Investments of insurance subsidiary		1,669			1,737			1,886
Investments in and advances to affiliates		688			683			679
Goodwill		2,629			2,652			2,601
Deferred loan costs		539			559			614
Other		853			667			148
	$	24,025		$	23,777		$	23,675
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable	$	1,370		$	1,290		$	1,415
Accrued salaries		780			731			675
Other accrued expenses		1,391			1,389			1,193
Long-term debt due within one year		308			299			293
Total current liabilities		3,849			3,709			3,576
Long-term debt		27,000			27,246			28,115
Professional liability risks		1,233			1,276			1,309
Income taxes and other liabilities		1,379			1,189			1,017
Minority interests in equity of consolidated entities		938			915			907
Equity securities with contingent redemption rights		164			164			125
Stockholders’ deficit		(10,538	)		(10,722	)		(11,374	)
	$	24,025		$	23,777		$	23,675

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HCA Inc.
Consolidated Statements of Cash Flows
For the Years Ended December 31, 2007 and 2006
(Dollars in millions)

	2007			2006
Cash flows from operating activities:
Net income	$	874		$	1,036
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for doubtful accounts		3,130			2,660
Depreciation and amortization		1,426			1,391
Income taxes		(105	)		(552	)
Gains on sales of facilities		(471	)		(205	)
Impairment of long-lived assets		24			24
Change in operating assets and liabilities		(3,615	)		(2,940	)
Change in minority interests		40			58
Share-based compensation		24			324
Other		69			49
Net cash provided by operating activities		1,396			1,845
Cash flows from investing activities:
Purchase of property and equipment		(1,444	)		(1,865	)
Acquisition of hospitals and health care entities		(32	)		(112	)
Disposal of hospitals and health care entities		767			651
Change in investments		207			26
Other		23			(7	)
Net cash used in investing activities		(479	)		(1,307	)
Cash flows from financing activities:
Issuance of long-term debt		24			21,758
Net change in revolving bank credit facility		(520	)		(435	)
Repayment of long-term debt		(750	)		(3,728	)
Repurchase of common stock		(2	)		(653	)
Recapitalization — repurchase of common stock		—			(20,364	)
Recapitalization — equity contributions		—			3,782
Payment of debt issuance costs		—			(586	)
Issuance of common stock		100			108
Payment of cash dividends		—			(201	)
Other		(10	)		79
Net cash used in financing activities		(1,158	)		(240	)
Change in cash and cash equivalents		(241	)		298
Cash and cash equivalents at beginning of period		634			336
Cash and cash equivalents at end of period	$	393		$	634
Interest payments	$	2,163		$	893
Income tax payments, net of refunds	$	421		$	1,087

8

HCA Inc.
Operating Statistics

							For the Years
	Fourth Quarter						Ended December 31,
	2007			2006			2007			2006
Consolidating Hospitals:
Number of Hospitals		161			166			161			166
Weighted Average Licensed Beds		38,784			39,762			39,065			40,653
Licensed Beds at End of Period		38,405			39,354			38,405			39,354
Reported:
Admissions		384,000			391,500			1,552,700			1,610,100
% Change		-1.9	%					-3.6	%
Equivalent Admissions		585,300			586,300			2,352,400			2,416,700
% Change		-0.2	%					-2.7	%
Revenue per Equivalent Admission	$	11,760		$	11,066		$	11,417		$	10,542
% Change		6.3	%					8.3	%
Inpatient Revenue per Admission	$	11,121		$	10,355		$	10,718		$	9,876
% Change		7.4	%					8.5	%
Patient Days		1,881,200			1,921,200			7,683,000			7,916,100
Equivalent Patient Days		2,867,400			2,877,800			11,639,700			11,882,100
Inpatient Surgery Cases		126,500			130,000			516,500			533,100
% Change		-2.7	%					-3.1	%
Outpatient Surgery Cases		200,100			200,600			804,900			820,900
% Change		-0.3	%					-2.0	%
Emergency Room Visits		1,288,300			1,265,800			5,116,100			5,213,500
% Change		1.8	%					-1.9	%
Outpatient Revenues as a Percentage of Patient Revenues		36.9	%		36.4	%		36.9	%		36.4	%
Average Length of Stay		4.9			4.9			4.9			4.9
Occupancy		52.7	%		52.5	%		53.9	%		53.3	%
Equivalent Occupancy		80.3	%		78.7	%		81.7	%		80.0	%
Same Facility:
Admissions		376,100			379,900			1,513,100			1,533,700
% Change		-1.0	%					-1.3	%
Equivalent Admissions		570,600			569,100			2,286,300			2,302,100
% Change		0.3	%					-0.7	%
Revenue per Equivalent Admission	$	11,730		$	11,002		$	11,367		$	10,516
% Change		6.6	%					8.1	%
Inpatient Revenue per Admission	$	11,102		$	10,332		$	10,700		$	9,892
% Change		7.5	%					8.2	%
Inpatient Surgery Cases		123,900			125,500			505,200			510,400
% Change		-1.3	%					-1.0	%
Outpatient Surgery Cases		193,400			195,000			779,000			788,100
% Change		-0.8	%					-1.1	%
Emergency Room Visits		1,264,500			1,228,800			5,002,300			4,967,100
% Change		2.9	%					0.7	%
Number of Consolidating and Nonconsolidating (50/50 Equity Joint Ventures) Hospitals:
Consolidating		161			166			161			166
Nonconsolidating (50/50 Equity Joint Ventures)		8			7			8			7
Total Number of Hospitals		169			173			169			173

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