Podcast Summary

Podcast: Becker’s Healthcare Podcast
Episode: Alan Condon on HCA’s Record Year, the AI Race in Revenue Cycle and Key Industry Moves
Date: December 5, 2025
Host: Scott Becker
Guest: Alan Condon, Editor-in-Chief at Becker’s Healthcare

Episode Overview

This episode features Alan Condon, Editor-in-Chief at Becker’s Healthcare, discussing key headlines in the healthcare industry. The conversation focuses on HCA Healthcare's record-setting year, the evolving role of artificial intelligence (AI) in the revenue cycle, and notable industry transactions, particularly Community Health Systems’ (CHS) recent divestitures. The dialogue is fact-packed, candid, and peppered with firsthand insights on financial performance and major industry shifts.

Key Discussion Points & Insights

1. HCA Healthcare’s Record-Breaking Year

• Stock Performance & Financial Momentum
  • HCA Healthcare's stock hit a record high of ~$515 at the end of November 2025, maintaining ~$500 by December ([00:20]).
  • This marks an approximate 35% increase over the July 2024 high of $360.
  • “That surge… really underscores investor confidence in the for-profit 190, 191 hospital system’s ability to drive sustained growth in a really challenging environment.” — Alan Condon ([00:53])
• Q3 Financial Highlights
  • Reported $1.6 billion in net income for Q3 2025, with an 8.6% margin—a ~29% jump YOY.
  • Raised full-year guidance: revenues of ~$76.5 billion, net income ~$6.7 billion, earnings per share up to $28 ([01:40]).
• Success Drivers
  • Leadership under CEO Sam Hazen, with disciplined cost control and operational consistency.
  • Market presence in “fantastic markets” and emphasis on high-quality outcomes and access ([02:29]).
  • Notable Quote: “Really fantastic leadership across the board and no doubt that is expected to continue into 2026 as well.” — Alan Condon ([03:20])
• Key Takeaway: HCA’s focus on strong financial discipline, market selection, and consistent performance sets an industry benchmark.

2. AI in the Revenue Cycle: The ‘Arms Race’

• Payers vs. Providers
  • Payers (“insurers”) have long leveraged AI for claims processing, call centers, and utilization management. UnitedHealth Group alone has ~1,000 AI use cases and will handle over half of all consumer calls via AI by end of 2025 ([04:30]).
  • “Payers have been among the earliest adopters of AI in healthcare… deploying it across claims processing, call centers, things like utilization management.” — Alan Condon ([04:45])
• Provider Sector is “Playing Catch Up”
  • Hospitals and health systems are now racing to develop in-house AI tools (e.g., with Epic) to counteract administrative hurdles and improve claim outcomes.
  • Example: Cleveland Clinic started with over 15% of claims denied but reduced to below 2% after intensive appeals, aided by AI ([05:25]).
• Risks & Uncertainties
  • Increasing complexity and embeddedness of AI is a “double-edged sword” (quoting Cleveland Clinic CFO Dennis Laroway).
  • Major question: How will escalating AI sophistication on both sides affect financial performance and patient care?
• Host Perspectives
  • Scott Becker jokes about AI-handled payer calls causing access frustrations:
    • “That might be why we can never get through to the payer and actually ask them a question.” ([06:31])
  • He then stresses the importance of "off ramps" so customers can still reach a human:
    • “The best systems are combining the AI to take the lion’s share of stuff, but also including an off ramp so you could actually talk to a person…” ([06:52])
• Collaboration Needed
  • Alan and Scott agree: More collaboration between payers and providers is essential, with the patient at the center ([07:15]).

3. Industry Moves: Community Health Systems (CHS) and LabCorp

• CHS Divestitures
  • CHS continues to streamline through divesting non-core assets, most recently selling lab assets in 13 states to LabCorp in a transaction just shy of $200 million ([08:02]).
  • “Really aligns with CHS’s strategic focus to focus on some of its core acute care services and some of its key markets.” — Alan Condon
• LabCorp’s Expansion
  • LabCorp has been acquiring numerous hospital lab assets, further expanding its presence and partnerships across the U.S.
  • “Really, really building a massive enterprise there on the lab front.” — Alan Condon ([08:44])

Notable Quotes & Memorable Moments

• “That surge… really underscores investor confidence in the for-profit hospital system’s ability to drive sustained growth in a really challenging environment.” — Alan Condon ([00:53])
• “[HCA’s] real focus on high quality outcomes, really making sure that their access was better than some of its competitors…” — Alan Condon ([02:42])
• “Payers have been among the earliest adopters of AI in healthcare, deploying it across claims processing…” — Alan Condon ([04:45])
• “Trying to use AI tools, agents, automation to play catch up and try to protect our financial performance as much as possible.” — Alan Condon ([05:55])
• “That might be why we can never get through to the payer and actually ask them a question.” — Scott Becker ([06:31])
• “The best systems are combining the AI to take the lion’s share… but also including an off ramp…” — Scott Becker ([06:52])
• “Collaboration no doubt seems to be the key, but can providers and payers really get there…” — Alan Condon ([07:15])

Timestamps for Key Segments

• 00:20 — HCA Healthcare’s 2025 performance and financial results
• 02:29 — Leadership and strategy lessons from HCA
• 04:30 — AI’s rise in the revenue cycle: payers vs. providers
• 05:25 — Cleveland Clinic’s claim denial rates and resource-intensive appeals
• 06:31 — Discussion on AI in customer service (payer call centers)
• 07:15 — Importance of payer-provider collaboration
• 08:02 — CHS’s divestiture to LabCorp and broader lab asset trends

Summary Takeaways

• HCA Healthcare has set new records in profitability and stock price through disciplined operations and leadership, serving as a model for the sector.
• AI is reshaping the revenue cycle, with payers far ahead of providers; provider systems are racing to close the technological gap and streamline financial performance.
• Industry consolidation continues, with strategic asset divestitures (as by CHS) and aggressive expansion from companies like LabCorp.
• Key issue: Increasing sophistication of AI demands robust collaboration between all stakeholders to benefit both financial stability and patient outcomes.

This episode offers a clear, accessible window into the rapidly changing landscape of healthcare finance, technology, and strategic operations—ideal for executives, analysts, and anyone tracking major industry trends.