SUPPORTING STATEMENT: Patient satisfaction and quality of care are important determinants of a healthcare provider’s financial success. The IFRS Foundation’s SASB Standards lists these two factors as “essential value drivers” that are financially material issues for all healthcare delivery companies.1

In the Company’s 2022 Form 10-K, it states, “achieving high levels of patient safety, patient satisfaction and clinical quality are central goals of our business.”2 The Board of Directors, particularly the Patient Safety and Quality of Care Committee, is responsible for “fulfilling its oversight responsibilities... relating to the delivery of quality medical care to patients.”3 However, there are multiple indicators suggesting that the Company has failed to effectively manage and respond to enterprise-wide issues related to patient safety and quality of care, which creates financial, reputational, regulatory, and legal risks to the Company.



•
In the last three years, company executives have failed to meet minimum performance standards for patient care and experience metrics as tied to their compensation


The Company remains the subject of public criticism related to patient safety issues, including “[putting] profits over patient care,”7 “the lack of safe staffing and resources required to take care of patients,”8 unsanitary conditions,9 and “[pushing] palliative and end-of-life care in pursuit of better performance metrics.”10



•
A recent study from the Service Employees International Union, which represents over 22,000 HCA employees, underscores chronic understaffing at HCA facilities and the adverse impacts on patient care, with 89% of healthcare workers surveyed reporting that understaffing is compromising patient care at HCA hospitals.11



•
Patient care at HCA facilities has been the subject of persistent scrutiny from federal and state officials, including Florida’s Agency for Health Care Administration,12 North Carolina’s State Treasurer13 and Attorney General14, and members of Congress.15

The Company already utilizes the Agency for Healthcare Research and Quality (AHRQ) Survey on Patient Safety Culture “to help [the Company] sustain a culture of safety” and “drive [the Company’s] safety agenda.”16 Results from this survey could be aggregated in a standalone report, or integrated into existing reports, to disclose trends in patient responses, quantitative and qualitative metrics used to evaluate patient care and satisfaction, and to detail how management has used the findings to improve patient care, which would help shareholders better understand the Company’s management of mounting risk exposures.

For these reasons, we urge you to vote FOR this proposal.

Filed by Michael Frerichs.