HCA: distinguish patient volume, revenue yield and scope
You are explaining hospital revenue growth to a finance leader. Consolidated revenue and same-facility revenue are different comparisons. Use the disclosed volume and revenue-per-equivalent-admission rates without turning them into an unsupported causal claim.
Reported HCA FY2025 annual-report figures and rounded same-facility growth rates. USD millions for consolidated revenue. Finance Circle index calculations and downside assumptions are independent.
Independent Finance Circle learning material. The source organisation does not sponsor, author or endorse this exercise.
Clarify. Structure. Calculate. Defend.
Take 2 minutes to clarify the decision and definitions, 3 minutes to structure the analysis, then work the exhibits. Finish with a concise recommendation and answer a follow-up. The time is a suggested practice format, not an employer requirement.
Clarify before solving
What are the data basis and reporting boundary?
Reported HCA FY2025 annual-report figures and rounded same-facility growth rates. USD millions for consolidated revenue. Finance Circle index calculations and downside assumptions are independent.
Which assumptions can I use without requesting more data?
Consolidated revenue: FY2025 75,600 and FY2024 70,603, USD millions. Reported FY2025 same-facility equivalent admissions increased 2.4%; revenue per equivalent admission increased 4.1%; same-facility revenue increased 6.6%, all rounded disclosures.
What decision am I expected to support?
Calculate the scenario revenue index and its gap from the base implied revenue index. Also calculate the difference in growth rates.
Build your structure
- Consolidated versus same-facility scope
- Volume, revenue yield and interaction
- Comparable index and downside sensitivity
- Payer / service mix and forecast limitations
Use the branches that matter to this decision. A memorised framework is less useful than explaining why each analysis could change your recommendation.
Everything you need to work the case.
Assumptions & boundaries
- Consolidated revenue: FY2025 75,600 and FY2024 70,603, USD millions.
- Reported FY2025 same-facility equivalent admissions increased 2.4%; revenue per equivalent admission increased 4.1%; same-facility revenue increased 6.6%, all rounded disclosures.
- Index the same-facility prior-year base to 100. Multiply the volume and yield indices; the difference from the reported 6.6% reflects rounding.
- Director scenario uses 1% volume and 3% yield growth. It is not HCA guidance. Revenue yield can reflect mix and other factors; it is not a pure price measure.
Zero-based scale. Reported inputs and their calculated combined effect; see the exhibit definitions below.
Reported and scenario inputs
| Measure | Value |
|---|---|
| FY2025 consolidated revenue, USD million | 75,600 |
| FY2024 consolidated revenue, USD million | 70,603 |
| Same-facility volume growth | 2.4% |
| Same-facility revenue yield growth | 4.1% |
| Reported same-facility revenue growth | 6.6% rounded |
| Director scenario volume / yield | 1% / 3% |
Choose the responsibility. Solve the decision.
Each level uses the exhibits above and asks a different question. Your entries stay in this open page only; copy your work before leaving.
Calculate the consolidated comparison.
Calculate consolidated revenue increase and growth rate.
Why not call the gap between consolidated and same-facility growth an acquisition contribution?
Numerical checks compare your arithmetic with the case model. Written recommendations are self-practice and are not automatically graded.
03 · Reveal worked solution & decision guide
Expected numerical answers
- Consolidated revenue increase
- 4,997 USD million
- Consolidated revenue growth
- 7.0776 %
Work through the calculation
- Increase = 75,600 − 70,603 = 4,997.
- Growth = 4,997 / 70,603 × 100 = 7.08% approximately.
A strong concise response
My calculation shows that consolidated revenue increase is 4,997 USD million; consolidated revenue growth is 7.0776 %. Do not equate consolidated growth with same-facility growth: their scopes differ.
Answer the interviewer follow-up
Why not call the gap between consolidated and same-facility growth an acquisition contribution?
The scopes and definitions differ and the inputs are rounded. An acquisition attribution requires a matched bridge rather than an unsupported residual.
Assessment rubric · 20 points
For self-review or mentor discussion. This rubric is not an automated written-answer grade or an employer scoring system.
Correctly derives all 2 numerical results for this level, keeps signs and units consistent, and explains the method.
Explains the objective: Calculate the consolidated comparison. States the supplied scope, timing and metric definitions before calculating.
Do not equate consolidated growth with same-facility growth: their scopes differ. Addresses the interviewer follow-up without contradicting the facts.
Leads with a clear conclusion, distinguishes facts from assumptions, and identifies the next evidence needed. Does not claim the source company asked or endorsed this question.
Use full precision until the final rounding. Alternative written recommendations may be reasonable if they respect the facts and explain assumptions. This is Finance Circle’s guide, not an official source-company answer.
Source & attribution
The references below identify the public reporting, hiring guidance, research or mock-interview material used for context. Finance Circle wrote the exercise and its answers. Illustrative figures are explicitly identified; they are not company results or findings.
Historical inputs checked against the FY2025 annual report; interpretation uses the source’s same-facility definitions.
Source reviewed 30 October 2026. No external page is needed to answer this exercise. Company names and logos identify sources only. All trademarks belong to their respective owners.