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Looking at the Income Statement, note the amount of Operating revenue for the most recent period. Assume that services during the year included these three patients: Mrs. Marple, a Medicare patient whose stay at Reston Hospital (one of HCAs owned hospitals) was for 7 days and who received services which HCA assigned in retail charges (otherwise termed gross revenue) of $25,000. The Medicare DRG payment for her case is expected to be $10,000; Mr. Chan, a patient with little income or assets and one whom the hospital classifies as a charity patient, stayed in the hospital 4 days and received services with gross charges amounting to $18,000; Mr. Friday stayed in the hospital for 3 days and received services with gross charges amounting to $28,000. Although Mr. Friday had no insurance, he did have a significant source of income and had a sizable amount of assets. Attempts by the hospital to locate Mr. Friday to settle his bill have proven fruitless, and currently, he has moved and has left no forwarding address.

a. Where, if at all, and at what amounts will Mrs. Marples gross revenue and net expected reimbursement (net revenue) appear on the Income Statement? b. Where, if at all, and at what amounts will Mr. Chans gross revenue and net revenue appear on the Income Statement? c. Where, if at all, and at what amounts will Mr. Fridays gross revenue and net revenue appear on the Income Statement?

(Dollars in millions, except per share amounts) 2015 2014 2013 Revenues before the provision for doubtful accounts Provision for doubtful accounts $ 43,591 $ 40,087 $ 38,040 3,913 3,169 3,858 39,678 36,918 34,182 Revenues Salaries and benefits. Supplies Other operating expenses Electronic health record incentive income Equity in earnings of affiliates Depreciation and amortization Interest expense Losses (gains) on sales of facilities Losses on retirement of debt Legal claim costs 18,115 6,638 7,103 (47) (46) 1,904 1,665 5 135 249 16,641 6,262 6,755 (125) (43) 1,820 1,743 (29) 335 78 15,646 5,970 6,237 (216) (29) 1,753 1,848 10 17 Income before income taxes Provision for income taxes 35,721 33,437 31,236 3,957 3,481 2,946 1,261 1,108 950 2,696 2,373 1,996 567 498 440 $ 2,129 $ 1,875 $ 1,556 Net income Net income attributable to noncontrolling interests Net income attributable to HCA Holdings, Inc. Per share data: Basic earnings per share Diluted earnings per share Shares used in earnings per share calculations (in millions): Basic Diluted $ $ 5.14 $ 4.99 $ 4.30 $ 4.16 $ 3.50 3.37 414.193 426.721 435.668 450.352 445.066 461.913

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