News Details

HCA Updates Outpatient Strategy Progress Through First Year

December 1, 2004

HCA (NYSE: HCA) today announced a series of organizational changes and transactions completed in the first year of its new outpatient strategy.

Since launching the new strategy with the appointment of Marilyn B. Tavenner as President of the Outpatient Services Group in January 2004, HCA has continued to build an infrastructure in order to operate its existing outpatient services more efficiently and to develop new opportunities in the outpatient setting.

"We have made significant progress in structuring our Outpatient Services Group to pursue the emerging opportunities in this important arena," Tavenner noted. "We have focused on a strategy designed to increase competitiveness and quality of hospital based outpatient services. At the same time, we are working with existing and potential partners to grow free-standing outpatient centers."

The company has put in place a team that includes several HCA veterans in addition to Tavenner and a contact at each of the company's 12 division offices who focuses on building the outpatient business of that division. Other senior members of the organization include A. Bruce Moore, Chief Operating Officer, Outpatient Services Group; Robert S. "Sam" Hankins, Chief Financial Officer, Outpatient Services Group; Greg Beasley, President of the Ambulatory Surgery Division; and Laura Mower, Vice President, Imaging Division.

In addition to building an operations infrastructure to help manage the company's existing outpatient services, HCA has begun to develop new outpatient business, particularly in the areas of imaging and surgery.

Since establishing the Outpatient Services Group, transactions totaling nearly $24 million and 11 centers have been completed including the following:

     -- Acquiring a majority of Diversified Radiology of Denver, Colo.,
        comprising four imaging centers with a fifth under development and
        expected to be completed by the summer of 2005.
     -- Obtaining a minority interest in Thousand Oaks Diagnostic Imaging - an
        imaging center in Thousand Oaks, Calif.
     -- Assuming a minority interest position in two imaging centers owned by
        Austin Radiological Associates in Austin, Texas.
     -- Acquisition of Millcreek Imaging Center, a diagnostic imaging center
        in Salt Lake City, Utah.
     -- Acquiring a majority interest in LAD Imaging, a two-center imaging
        company in Deltona and Orange City, Fla.
     -- Assuming majority ownership of Gastrointestinal Endoscopy Center #2,
        an outpatient center in Plano, Texas, that focuses on endoscopic

Also during 2004, HCA has opened or acquired five new surgery centers and formed or restructured partnerships at five centers that had been managed by hospitals, bringing its total to 91 ambulatory surgery centers in 16 states.

The company estimates it will acquire or develop 5 - 10 surgery centers and 15 - 25 imaging centers over the next year.

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 (i) the ability to implement the acquisition, development and operating strategy of the Company's Outpatient Services Group, including the ability to identify suitable acquisition candidates in areas where the Company has acute care facilities, and (ii) other risk factors detailed in the Company's filings with the SEC. Many of the factors that will determine the Company's future results are beyond the ability of the Company 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. The Company undertakes 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.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding HCA's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.

Investors, Mark Kimbrough, +1-615-344-2688, or
Media, Jeff Prescott, +1-615-344-5708,
both of HCA