HCAHOSPITAL CORPORATION OF AMERICA

Overview and Analysis October 22, 2015

Offered by: Connecticut General Life Insurance Company or Cigna Health and Life Insurance Company.

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Key Information:• HCA is a publicly owned company that is one of the nation’s leading providers of

healthcare services, comprised of locally managed facilities • Ranked 79th on Fortune 500• Revenue of $37B• Corporate Offices in Nashville, Tennessee• Company CEO - R. Milton Johnson is the company’s Chairman and CEO. • Locations - 168 hospitals and 113 freestanding surgery centers in 20 states and The

United Kingdom• 225,000 Employees• Products and Services:

– General, acute care hospitals freestanding surgery centers, freestanding emergency care facilities, diagnostic centers and rehabilitation facilities provide a full range of services

– Psychiatric hospitals provide a full range of mental health care services through inpatient, partial hospitalization and outpatient settings.

 

HCA Hospital Corporation of AmericaCompany Overview

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Mission:

“Above all else, we are committed to the care and improvement of human life. In recognition of this commitment, we will strive to deliver high quality, cost-effective healthcare in the communities we serve.”

Business/Growth Strategy:

Strategy to grow business, increase profitability and create long-term value for stockholders by aligning efforts around the following growth agenda:

– grow our presence in existing markets;– achieve industry-leading performance in clinical and satisfaction measures;– recruit and employ physicians to meet the need for high quality health services;– continue to leverage our scale and market positions to enhance profitability; and– selectively pursue a disciplined development strategy.

HCA Hospital Corporation of AmericaCompany Overview

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History:– Founded in 1968, in Nashville, Tennessee by Dr. Thomas F. Frist, Sr.,

Jack C. Massey and Dr. Thomas F. Frist, Jr.. – The first hospital that HCA owned was Park View Hospital, near downtown Nashville– In 1969, HCA conducted its first Initial Public Offering (IPO) on the

New York Stock Exchange (NYSE)– In 2006, Kohlberg Kravis Roberts and Bain Capital, together with Merrill Lynch and

the Frist family (which had founded the company) completed a $31.6 billion acquisition of the hospital company, making the company privately held again

– In 2010, HCA announced that the corporation would once again go public with an expected $4.6-billion IPO.

– In 2011, HCA sold 126.2 million shares for $30 each, raising about $3.79 billion, making it, at that time, the largest private-equity backed IPO in U.S. history

HCA Hospital Corporation of AmericaCompany Overview

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HCA Hospital Corporation of AmericaFinancial Performance

Cigna HCATotal Revenues 34,914 36,918 Revenue Growth 7.8% 8.0%Cash and Equivalents 1,420 566 Cash Flow 1,994 4,448 Cash Flow Growth 177.3% 20.9%Operating Income 3,304 3,481 Operating Margin 9.5% 9.4%Net Income 2,102 1,875 Net Profit Margin 6.0% 5.1%Net Profit Growth 42.4% 20.5%Diluted EPS 7.83 4.16Diluted EPS Growth 51.2% 23.4%Equity 10,774 (7,894) Return on Equity 19.5% -23.8%

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HCA Hospital Corporation of America5 Key Drivers

• Growth is primarily inorganic, based on acquisitions• In 2014, invested more than $750 million to acquire a number of surgery centers,

clinics and other non-hospital points of care and three hospitals, adding to our Chattanooga, Tampa, and Salt Lake Citymarkets.

• Planned spend of $7.7B over 3 years for capital growth investments• High quality, low cost strategy• Quality: 85 percent of our eligible US hospitals reporting core measure performance

data were recognized on The Joint Commission’s 2014 list of Top Performers on Key Quality Measures.

 

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HCA Hospital Corporation of AmericaComparison to Cigna

All Cigna products and services are provided exclusively by or through operating subsidiaries of Cigna Corporation, including Cigna Health and Life Insurance Company, Connecticut General Life Insurance Company, Cigna Behavioral Health, Inc., and HMO or service company subsidiaries of Cigna Health Corporation. The Cigna name, logo, and other Cigna marks are owned by Cigna Intellectual Property, Inc.

000000 00/15 © 2015 Cigna. Some content provided under license.