Hill-Rom Holdings, Inc. (HRC)

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Remi Cossart

Hill-Rom Holdings (NYSE: HRC) is a manufacturing firm which makes products for the healthcare industry. This includes patient support and safe mobility systems. In other words, Hill-Rom primarily builds the structural devices used to transport and support patients. The company makes money by selling and also renting its products to home care and healthcare facilities mostly in North America. Hill-Rom operates in three main segments: North America Acute Care, North America Post-Acute Care, and International and Surgical. Hill-Rom previously operated in the funeral services business but has since then discontinued operations. Hill-Rom Holdings was formerly known as Hillenbrand Industries.^[1] For the full year 2010, Hill-Rom reported a total revenue of $1.5B and a net income $125M.^[2]

Most of the costs that Hill-Rom's customers face in the renting and purchasing of their goods are not paid for by the individual themselves. Rather, they are paid for by third-party insurances. This means that degree and ease with which insurance companies pay for their goods is crucial in the continued demand. Changes in the healthcare regulations could positively or negatively influence the rate and level of insurance payments and so the overall demand.^[3]

References

1. ↑ HRC 10-K 2010 Business "General" pg 3-4
2. ↑ HRC 10-K 2010 Business "Selected Financial Data" pg 17
3. ↑ HRC 10-K 2010 Business "Key Factors Impacting Our Business" pg 18