Two resolutions calling for HCA to have more transparency in political spending failed to pass during the company’s annual shareholder’s meeting on Thursday — with the company's stock dropping significantly as Friday's trading session drew to a close.
The resolutions, which were originally brought by two individual shareholders, gained support from a number of HCA’s direct service employees and the Service Employees International Union, among other unions and trust funds (read here).
In a press release, SEIU expressed concern that HCA has contributed millions of dollars to right-wing political action committees in Florida, which in turn, supported Gov. Ron Desantis, who is known to oppose expanding Medicaid.
“HCA needs to stop supporting politicians who put up barriers that exclude huge numbers of patients from accessing healthcare,” Xochitl Gonzalez, a patient care technician at HCA-owned Los Robles Hospital in Thousand Oaks, California, said in a release.
The release also noted concerns about potential Medicare admissions fraud at HCA.
The HCA Board of Directors responded to both of the proposals at the time they were documented, claiming it was in the best interest of the company to be an “effective participant in the political process” and that the company could be at a competitive disadvantage if it reveals “strategies and priorities.”
In addition, Bloomberg reports the hospital operator suffered its biggest stock price drop in two years on Friday, noting HCA said higher labor costs will carve into its financial results this year.
HCA released its first quarter results Friday, with revenues for the period having increased to $14.95 billion, compared to $13.98 billion in the same period of 2021.
The company recorded quarterly earnings of $4.12 per share, compared to $4.14 per share from the same quarter of a year ago, missing the Zacks Consensus Estimate of $4.27 per share.
Shares of HCA (Ticker: HCA) were trading at $213.95, down a robust 20.6 percent, one of the largest stock declines of the day.