1. Vic Campbell Senior Vice President
Milton Johnson Executive Vice President and
Chief Financial Officer
Mark Kimbrough VP, Investor Relations
#1 of 30 (Title Slide/Option A)
Presenter notes:

2. Cautionary Note Regarding Forward-looking Statements
HCA’s management will be making some forward-looking statements during today’s presentation. Those forward-looking statements are based on management’s current expectations and are subject to risks and uncertainties that may cause those forward looking statements to be materially incorrect.
Certain of those risks and uncertainties are discussed in HCA’s filings with the Securities and Exchange Commission, including the company’s report on Form 10-K and its quarterly reports on form 10-Q, to which you are referred. Management cautions you not to rely on, and makes no promises to update any of the forward looking statements.

3. Collective Knowledge 190,000 employees 189 hospitals
92 surgery centers
14 million patients treated annually
5.2 million emergency room visits annually
#7 of 30 (Collective Knowledge)
Recommended talking points:
Even with 190,000 employees, 190 hospitals and 91 surgery centers (including joint ventures), we operate with one focus in mind – ensuring that the 14 million patients we see annually are provided with excellent patient care.
Because of HCA’s vastness as a company, each hospital benefits from the collective strength and knowledge of all our facilities.
Presenter notes:

4. What Will Drive HCA’s Future Success
Located in Large, Growth Markets and Aging Population
Capital Investments
Quality Initiatives
Patient Safety
Bad Debt Trends Improving/Encouraging
Prudent use of Company’s Strong Cash Flows

5. HCA Hospitals Located in Growth Markets
Generally 25%-40%
Market Share
40% of facilities in
Texas & Florida
Kansas City
+5%
Denver
+9%
U.K.
Las Vegas
+22%
Switzerland
Richmond
+8%
Dallas/Ft. Worth
+12%
Nashville
+8%
Southern California
+9%
#28 of 30 (Core Communities/Map)
Recommended talking points:
Not only are we operating in these growing communities, we also have a significant presence in each of them.
Generally, we have a 25%-40% market in each of these markets.
This provides us a solid foundation for continued growth in all the communities that we serve.
Presenter notes:
Panhandle
+10%
Palm Beach
+11%
Houston
+10%
Dade
+8%
Percent Growth in Market Population
Compared to the National Average of 4.5%
Austin
+18%
Tampa Bay
+8%

6. Improving unemployment rate in mid-2003
implies mid-2005 rebound in admissions 4% 4% 3% 5% 2% 1% 6% 0%
Unemployment Rate 7%
Inpatient Admissions Growth
-1%
-2% 8%
2 Year Lagged
-3%
Correlation
-4% 9%
- R 2
of 0.74 since 1980
- R 2
of 0.66 since 1978
-5%
- R 2
of 0.48 since 1970
10%
-6%
1950
1955
1960
1965
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004YTD
Unemployment Rate
Inpatient Admissions Growth
Source: American Hospital Association, Bureau of Labor Statistics and Goldman Sachs Research estimates.

7. Socio-Demographics—Age Wave Driving Healthcare Utilization
1.56%
3-Year CAGR
1.59%
1.58%
1.62% 95
100
105
110
115
120
125
1.58% CAGR
121
119
117
115
113
112
110
108
106
105
103
102
100 98 97 96
1.7%
1.6%
1.5%
1.4%
Acute Care Utilization Index
(2003=100)
Baby Boomer Impact Accelerates
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015

8. What Will Drive HCA’s Future Success
Capital Investments

9. Investments in Our Facilities
$7.6 billion in existing facilities since 2000 ($1.5 billion ’04)
$36,000 per bed annually
$130 million in information technology
$300 million in patient safety technologies since ’97
#14 of 30 (Facility Investments)
Recommended talking points:
We believe in investing capital in our facilities so that they remain up-to-date and have access to the latest technology.
Because of this belief, we invest $44,200 per bed annually – among the highest in the healthcare industry.
We’ve invested over $130 million to restructure our information systems to support the latest in healthcare technology and administrative infrastructure.
Part of this investment included the reorganization of our revenue and supply chain operations.
Presenter notes:

10. Distribution of Capital Dollars Remains Unchanged 2003 and beyond
Ongoing Projects in Capital Plan
Three Facilities
511 Beds
33 ER
Expansions
Open Heart, Cardiology
Oncology, etc.
Three New Facilities
310 Beds
56 Facilities with
Surgery and/or ICU/CCU expansions
1,611 New Beds
Represents $4.2B of projects

11. Transactions totaling $62 million completed
Outpatient Strategy Progressing
Transactions totaling $62 million completed
20–30 imaging center and 8-10 surgery center transactions expected to be completed over the next 12 months
Diversified Radiology (Denver)
4 imaging centers/fifth under construction
Austin Radiology Assoc.
2 imaging centers
Sarah Cannon Research Institute (Nashville)
Millcreek Imaging Center
Salt Lake City, UT
Thousand Oaks
Diagnostic Imaging
LAD Imaging Centers
(Orange City, Deltona)
Total I Management, LLC
Tampa Bay Area/5 imaging centers
HCA Surgery Centers

12. What Will Drive HCA’s Future Success
Quality Initiatives

13. Our Recognition for Quality
#11 of 41 (Quality Awards)
Presenter notes:

14. Satisfied Physicians
HCA physicians rank our facilities higher than that of other hospitals across the country
#22 of 41 (Satisfied Physicians)
Recommended talking points:
As a network, Gallup surveys show that physicians are more satisfied with HCA facilities than with non-HCA facilities.
Presenter notes:
Source: Gallup Satisfaction Surveys 2003

15. Our Commitment to Quality
HCA Quality Review System (QRS)
An internal process that provides ongoing assurance that patient care services in HCA hospitals meet defined quality standards.
SUPP C: #8 of 9 (Quality Review System)
Recommended talking points:
The QRS process incorporates an on-site inspection of the quality standards at each of our hospitals at least once every 18 months.
The QRS process ensures that all our hospitals are meeting defined quality standards.
Presenter notes:

16. Our Commitment to Quality
QRS surveys analyze clinical performance using:
JCAHO survey scores
Professional liability risk exposure
Patient, employee, and physician satisfaction results
SUPP C: #9 of 9 (Quality Review System)
Recommended talking points:
The QRS on-site inspections review such things as patient safety compliance; JCAHO survey scores; liability risk exposure; and employee, patient, and physician satisfaction survey scores.
Presenter notes:

17. Our Commitment to Quality

18. What Will Drive HCA’s Future Success
Patient Safety

19. Our Commitment to Patient Safety
HCA Has
Invested Over
$300 Million In
Patient Safety
Technologies
Since ’97
#16 of 30 (Patient Safety Investment)
Recommended talking points:
HCA has invested more than $300 million in various patient safety technologies since 1997.
Many of these patient safety technologies have already been implemented in our hospitals; others are still being deployed.
Presenter notes:

20. Our Commitment to Patient Safety
eMAR & Barcoding
Ensures the five “R’s” – right patient, right medication, right dose, right time, right route of administration
The benefit to our patients…
Prevents the error patients fear most … getting the wrong medication
#18 of 30 (eMAR/Video)
Recommended talking points:
61% of consumers fear being given the wrong medication according to a 2002 Kaiser Family Foundation Study.
By mid-2005, barcode-assisted medication administration systems will be implemented in all HCA hospitals.
Only 2% of U.S. hospitals are currently using this technology.
Presenter notes:

21. Our Commitment to Patient Safety
Electronic Provider Order Management (ePOM)
Allows physicians to input prescriptions and patient orders electronically and transmit them directly to a pharmacy or hospital department
The benefit to our patients…
Eliminates the risk of a pharmacist or clinician misreading a physician’s handwriting
#20 of 30 (ePOM/Overview)
Recommended talking points:
When fully implemented, ePOM will go a step beyond eMAR by eliminating the need for staff to transcribe a written order from a doctor into a computer.
Instead of writing prescriptions and other orders by hand, doctors using ePOM enter orders directly into a computer, which is linked to the pharmacy and to laptop computers used by nurses.
120 HCA facilities were using this technology as of December It will be fully deployed to all HCA hospitals by the end of 2005.
Presenter notes:

22. Our Commitment to Patient Safety
ePOM - Safety Alerts
Drug allergies
Dose warnings
Duplicate orders
Abnormal results
Severe drug interactions
Common test interactions
Age limits for certain drugs
#21 of 30 (ePOM/Alerts)
Recommended talking points:
The following are some of the safety alerts that can be issued by ePOM:
Drug allergies
Dose warnings
Duplicate orders
Abnormal results
Severe drug interactions
Common test interactions
Age limits for certain drugs
Presenter notes:

23. Addressing Medication Errors (ADES)
eMAR & Barcoding
ePOM
#22 of 30 (Medication Errors Addressed)
Recommended talking points:
With the deployment of both eMAR and ePOM, 90% of all medication errors will be eliminated.
Presenter notes:
Bates DW et al. Incidence of adverse drug events, potential adverse drug events. JAMA 1995;274:29-34.

24. What Will Drive HCA’s Future Success
Bad Debt Trends Improving/Encouraging

25. Bad Debt Trends Encouraging
Bad Debts & Charity
$5B
$1B
$912
$916
$893
$874
$3,595
$837
$786
$795
$3,028
$587
$610
$567
$491
$514
$2,160 $0 $0
Charity Bad Debt
Bad Debts
As reported
BD % of Net Revenue
BD & Charity % of Gross Revenue

26. Growth in Uninsured Volume Slowing
1999
2000
2001
2002
2003
2004
Uninsured
Admissions
Same Facility
% of Total Admissions
N/A
25,000
2004: +9.7%
19,532
18,416
17,961
17,944
18,929
18,947
16,087
17,136
16,111
15,782
16,473
14,722
Uninsured
Admissions
Same Facility
13.7%
vs. PY
15.2%
vs. PY
7.1%
vs. PY
2.4%
vs. PY
7.5%
vs. PY
11.5%
vs. PY
3.7%
vs. PY
1Q02
2Q02
3Q02
4Q02
1Q03
2Q03
3Q03
4Q03
1Q04
2Q04
3Q04
4Q04
25%
20.4%
20.3%
Uninsured
ER Visits
Same Facility
% of Total ER Visits
19.6%
17.7%
17.5%
18.2%
20.8%
19.3%
19.5%
18.3%
17.0%
17.1%
N/A
10%
1Q 99
2Q 99
3Q 99
4Q 99
1Q 00
2Q 00
3Q 00
4Q 00
1Q 01
2Q 01
3Q 01
4Q 01
1Q02
2Q02
3Q02
4Q02
1Q03
2Q03
3Q03
4Q03
1Q04
2Q04
3Q04
4Q04

27. Revisions Made to the Uninsured Policy
Provide a discount to all uninsured non-elective patients similar to managed care rates.
Continue to attempt to qualify uninsured patients for Medicaid and other state and federal programs.
Charity care will continue to be provided for those uninsured patients with income levels at or below 200 percent of the Federal Poverty Level.
The Company estimates that there will be no material impact on earnings.

28. What Will Drive HCA’s Future Success
Prudent use of Company’s Strong Cash Flows

29. Cash flow in 2004 Remains Positive
Net Cash Provided by Operating Activities1
Dollars in Millions
New Dividend
Policy
$250mm annually
Share
Repurchase
Program
$10.0B in 8 years
$2.5B “Dutch Auction” completed at $39.76 in
Fourth Quarter 2004
Capital Reinvestment
$1.5B in 2004
8.0%
Excluding settlements with government agencies and investigation related costs.
1: are non-GAAP numbers

30. Avg Share Price
$7.5 Billion
249 Million Shares
38% of outstanding shares
Average Price: $30.20
650M Shares 12/31/96
423M Shares2 12/31/04
Impact of Tender Offer
$10 Billion
312 Million Shares
Average Price: $32.13
Share Repurchase
$40.07
$3.1B: 77.4 Shares 1
2004
$35.76
$45.53
$1.1B: 31.1M Shares
2003
$36.88
2002
$282M: 6.2M Shares
$28.65
2001
$706M: 19.2M Shares
$24.61
$1.3B: 43.5M Shares
2000
$1.4B: 55.6M Shares
$22.68
$1.4B: 55.6M Shares
1999
$33.59
$930M: 41M Shares
$930M: 41M Shares
1998
$1.3B: 37.9M Shares
1997
$1.3B: 37.9M Shares
1: 2004 purchases through 12/31/04
2: Includes other activities affecting share balance (stock option exercises, restricted grants, and ESPP activity).

31. In Summary We Have…. Great Assets Excellent Investment Opportunities
Strong Cash Flows
Excellent Long-Term Earnings Growth Outlook
Prudent Financial Strategy Focused on Shareholder Value