HCA · 10-Q · 2026Q3 · Full report
Operating Expense Trends
HCA Healthcare, Inc. · 2026-10-29 · Importance 42 · Surprise 40 · No source text
Other operating expenses increased to $13.771 billion for the first nine months of 2026 from $11.799 billion, and rose to 23.3% of revenue from 21.0%. The increase of 2.3 percentage points was primarily related to higher Medicaid state directed and supplemental payment program expenses and professional fees; the company also cited inflationary pressure on certain expenses. Salaries and benefits totaled $25.154 billion, or 42.5% of revenue, compared with $24.499 billion, or 43.7%, in the prior-year period. Supplies totaled $8.561 billion, or 14.5% of revenue, compared with $8.390 billion, or 15.0%; pharmacy supply cost per equivalent admission declined 4.2%, primarily due to lower utilization of certain drugs.
Key facts
- Third-quarter salaries and benefits were 43.2% of revenue in 2026 versus 43.6% in 2025; salaries and benefits per equivalent admission declined 0.2%. source
- Other operating expenses were 23.0% of revenue in third-quarter 2026 versus 21.8% in third-quarter 2025. source
- First-nine-months 2026 salaries and benefits were 42.5% of revenue versus 43.7% in 2025; salaries and benefits per equivalent admission increased 0.5%. source
- First-nine-months 2026 supplies were 14.5% of revenue versus 15.0% in 2025; supply cost per equivalent admission declined 0.1%. source
- Other operating expenses were 23.3% of revenue in the first nine months of 2026 versus 21.0% in 2025, a 2.3-percentage-point increase primarily related to Medicaid program expenses and professional fees. source
- Same-facility salaries and benefits per full-time equivalent increased 2.7% in third-quarter 2026 year over year. source
- Third-quarter supply cost per equivalent admission declined 2.5% for medical devices, 2.3% for pharmacy supplies, and 0.9% for general medical and surgical items year over year. source
- Same-facility salaries and benefits per full-time equivalent increased 2.8% in the first nine months of 2026 year over year. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| margin | negative | realized | -2.3% | Other operating expenses were 23.3% of revenue in the first nine months of 2026 versus 21.0% in 2025, a 2.3-percentage-point increase… |
| margin | negative | realized | -1.2% | Other operating expenses were 23.0% of revenue in third-quarter 2026 versus 21.8% in third-quarter 2025. |
| margin | positive | realized | +1.2% | First-nine-months 2026 salaries and benefits were 42.5% of revenue versus 43.7% in 2025; salaries and benefits per equivalent admission… |
| margin | positive | realized | +0.5% | First-nine-months 2026 supplies were 14.5% of revenue versus 15.0% in 2025; supply cost per equivalent admission declined 0.1%. |
| margin | positive | realized | +0.4% | Third-quarter salaries and benefits were 43.2% of revenue in 2026 versus 43.6% in 2025; salaries and benefits per equivalent admission… |
| operating_income | negative | realized | — | First-nine-months 2026 salaries and benefits were 42.5% of revenue versus 43.7% in 2025; salaries and benefits per equivalent admission… |