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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report September 9, 1997
(Date of Earliest Event Reported)
COLUMBIA/HCA HEALTHCARE CORPORATION
(Exact name of Registrant as specified in its Charter)
DELAWARE
(State of Incorporation)
001-11239 75-2497104
(Commission (I.R.S. Employer
File Number) Identification No.)
One Park Plaza, Nashville, Tennessee 37203
(Address of principal executive offices) (Zip Code)
(615) 327-9551
(Registrant's telephone number, including area code)
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ITEM 5. OTHER EVENTS
On September 9, 1997, Columbia/HCA Healthcare Corporation (the
"Company" or "Columbia/HCA") announced that the Company anticipates weaker
than expected financial results in the third quarter ending September 30, 1997.
Management projects reporting revenues to be flat to down slightly from the
third quarter of 1996 and a reduction in earnings per share to $0.20 to $0.25,
compared with $0.46 in last year's third quarter.
ITEM 7. EXHIBIT
Exhibit 20 Copy of press release dated September 9, 1997 relating
to expected third quarter earnings decline.
SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the Registrant has duly caused this Report to be signed on its behalf by the
undersigned hereunto duly authorized.
COLUMBIA/HCA HEALTHCARE CORPORATION
/s/ JOHN M. FRANCK II
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John M. Franck II
Corporate Secretary
DATED: September 12, 1997
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EXHIBIT 20
[LOGO OF COLUMBIA/HCA HEALTHCARE CORPORATION APPEARS HERE]
NEWS
FOR IMMEDIATE RELEASE
INVESTOR RELATIONS CONTACTS: MEDIA CONTACT:
Mark Kimbrough Israel Rollins Jeff Prescott
615/344-2688 615/344-2708 615/344-5708
COLUMBIA/HCA EXPECTS THIRD QUARTER EARNINGS DECLINE
Nashville, TN September 9, 1997 -- Columbia/HCA Healthcare Corporation
(NYSE: COL) today announced that the Company anticipates weaker than expected
financial results in the third quarter ending September 30, 1997. Management
projects reporting revenues to be flat to down slightly from the third quarter
of 1996 and a reduction in earnings per share to $0.20 to $0.25, compared with
$0.46 in last year's third quarter.
Although final figures for August are not yet available, the Company
estimates that same facility admissions declined by approximately 1 percent in
the month of August. Same facility admissions for July increased by 1.6 percent
compared to July 1996, and for the first seven months of 1997 increased by 2.3
percent.
"Our number one priority of continuing to provide the highest quality
patient care will not be compromised," said Dr. Thomas F. Frist, Jr., who was
named Chairman and Chief Executive Officer on July 25, 1997. "With the changes
already made, and others soon to be announced, we are confident we are laying
the foundation for a strong future. We must, however, continue to examine the
Company's cost structure and staffing needs and respond accordingly, if
admission trends continue to be soft."
The Company said that during the third quarter it expects to incur costs of
approximately $60 million in connection with activities primarily related to
severance costs and the ongoing government investigations. Columbia/HCA has
retained the services of the law firm, Latham & Watkins, and the accounting
firm, Deloitte & Touche, to assist the Company in working with government
agencies to resolve outstanding issues. The new management has pledged
cooperation with government officials on pending investigations, in an effort to
resolve these matters as quickly as possible.
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September 9, 1997
Page 2
Columbia/HCA has announced several initiatives to address current issues,
including a slowing of the Company's acquisition program, elimination of
Columbia's national branding campaign, and termination of construction projects
totaling approximately $250 million. An additional $200-$300 million of
construction projects are currently under review. The Company has also announced
plans to divest its home health operations and three of four Value Health units.
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The above statements include forward looking statements based on current
management expectations. Numerous factors exist which may cause future results
to differ from these expectations. The information involves risks and
uncertainties as detailed from time to time in the Company's filing with the
Securities and Exchange Commission.
