DaVita

Last updated
DaVita Inc.
Company type Public
Industry Healthcare
Founded1979;45 years ago (1979)
Headquarters Denver, Colorado, U.S.
Key people
Javier J. Rodriguez (CEO)
Peter Grauer (lead independent director)
Services Dialysis
RevenueIncrease2.svg US$11.62 billion (2021)
Increase2.svgUS$1.80 billion (2021)
Increase2.svgUS$978 million (2021)
Total assets Increase2.svgUS$17.12 billion (2021)
Total equity Decrease2.svgUS$756 million (2021)
Owner Berkshire Hathaway (37.9%) [1]
Number of employees
69,000 (2021)
Website davita.com
Footnotes /references
[2]

DaVita Inc. provides kidney dialysis services through a network of 2,816 outpatient dialysis centers in the United States, serving 204,200 patients, and 321 outpatient dialysis centers in 10 other countries serving 3,200 patients. The company primarily treats end-stage renal disease (ESRD), which requires patients to undergo dialysis 3 times per week for the rest of their lives unless they receive a donor kidney. The company has a 37% market share in the U.S. dialysis market. It is organized in Delaware and based in Denver. [2]

Contents

In 2020, 68% of the company's revenues came from Medicare and other government-based health insurance programs. In 2020, 90% of the company's patients were covered by government-based health insurance programs. Commercial payers, which accounted for 32% of revenues in 2020, generate nearly all of the company's profit as they reimburse at a much higher rate than government-based health insurance programs. [2]

The company is ranked 357th on the Fortune 500. [3]

The name "DaVita" was derived from the Italian language phrase "Dare Vita", which means "to give life". [4]

History

The company was founded in 1979 as Medical Ambulatory Care, Inc., a subsidiary of National Medical Enterprises, Inc. (now Tenet Healthcare). [5]

In August 1994, 70% of the company was acquired by DLJ Merchant Banking Partners in a leveraged buyout for $75.5 million, [6] including a $10.5 million investment by DLJ. [7] The company then changed its name to Total Renal Care Holdings, Inc.

In October 1995, the company became a public company via an initial public offering, raising $107 million. [5]

By December 1996, DLJ had made a 386% return on its $10.5 million investment. [7]

On February 27, 1998, the company acquired Renal Treatment Centers for $1.3 billion in stock. [5] [8]

The integration went poorly and in July 1999, the CEO and CFO resigned. After tripling in value between 1995 and 1998, by July 1999, the stock price was down 71% year-to-date. [9] [10]

In October 1999, Kent J. Thiry, then 43 years old, was named CEO. [11]

In 2000, the company sold its non-U.S. operations. [12]

In October 2000, the company was renamed DaVita Inc. [13]

In October 2005, the company acquired Gambro Healthcare. [14]

In October 2014, the company agreed to pay $350 million to settle claims that it provided illegal kickbacks to doctors. [15]

In June 2015, the company agreed to pay $450 million to settle allegations that it unnecessarily disposed of drugs and then billed the U.S. federal government for this waste. [16]

In June 2018, a jury awarded the families of 3 of the company's patients $383 million in wrongful death claims after the patients died from cardiac arrest after undergoing treatment at DaVita centers. [17]

In July 2021, a federal grand jury indicted DaVita and former CEO Kent Thiry on charges of labor market collusion alleging participation in conspiracies with Surgical Care Affiliates to suppress competition for the services of certain senior-level employees. The company and Thiry were acquitted by a jury in April 2022. [18] [19]

Healthcare Partners

In 2012, DaVita acquired Healthcare Partners for $4.42 billion. [20] In 2014, it acquired Colorado Springs Health Partners, with 600 employees and 110,000 patients. [21] In March 2016, it acquired The Everett Clinic Medical Group, a 20-site physicians practice with 315,000 patients in the Seattle area, for $385 million. [22] In September 2016, Healthcare Partners was renamed DaVita Medical Group. In May 2017, it acquired WellHealth Quality Care. [23] In October 2018, it agreed to pay $270 million to settle allegations that it violated the False Claims Act by providing inaccurate information that caused Medicare Advantage Plans to receive inflated payments. James Swoben, a whistleblower, received $10 million. [24] In June 2019, the division was sold to UnitedHealth Group's Optum division for $4.3 billion. [25]

Related Research Articles

<span class="mw-page-title-main">Medtronic</span> Irish tax-registered medical device company

Medtronic plc is an American-Irish medical device company. The company's operational and executive headquarters are in Minneapolis, Minnesota, and its legal headquarters are in Ireland due to its acquisition of Irish-based Covidien in 2015. While it primarily operates in the United States, it operates in more than 150 countries and employs over 90,000 people. It develops and manufactures healthcare technologies and therapies.

UnitedHealth Group Incorporated is an American multinational health insurance and services company based in Minnetonka, Minnesota. Selling insurance products under UnitedHealthcare, and health care services and care delivery aided by technology and data under Optum, it is the world's eleventh-largest company by revenue and the largest health care company by revenue.

Fresenius SE & Co. KGaA is a European multinational health care company based in Bad Homburg vor der Höhe, Germany. It provides products and services for dialysis in hospitals, as well as inpatient and outpatient medical care. The company is involved in hospital management and in engineering and services for medical centers and other health care facilities.

<span class="mw-page-title-main">Tenet Healthcare</span> American healthcare company

Tenet Healthcare Corporation is a for-profit multinational healthcare services company based in Dallas, Texas, United States. Through its brands, subsidiaries, joint ventures, and partnerships, including United Surgical Partners International (USPI), the company operates 65 hospitals and over 450 healthcare facilities. Tenet also operates Conifer Health Solutions, which provides healthcare support services to health systems and other clients.

Fresenius Medical Care AG & Co. KGaA is a German healthcare company which provides kidney dialysis services through a network of 4,171 outpatient dialysis centers, serving 345,425 patients. The company primarily treats end-stage renal disease (ESRD), which requires patients to undergo dialysis 3 times per week for the rest of their lives.

<span class="mw-page-title-main">Netcare</span> South African health care company

Netcare Limited is a South African private healthcare company. It operates through a number of subsidiaries and employs just over 21 000 people.

The American Kidney Fund (AKF) is a publicly supported non-profit organization founded in 1971.

In the United States, a pharmacy benefit manager (PBM) is a third-party administrator of prescription drug programs for commercial health plans, self-insured employer plans, Medicare Part D plans, the Federal Employees Health Benefits Program, and state government employee plans. According to the American Pharmacists Association, "PBMs are primarily responsible for developing and maintaining the formulary, contracting with pharmacies, negotiating discounts and rebates with drug manufacturers, and processing and paying prescription drug claims." PBMs operate inside of integrated healthcare systems, as part of retail pharmacies, and as part of insurance companies.

eHealth, Inc. dba eHealthInsurance is a private online marketplace for health insurance, organized in Delaware and based in Santa Clara, California. The company primarily provides plans related to Medicare such as prescription drug plans, Medigap, and Medicare Advantage plans. The company also sells individual plans, competing with health insurance marketplaces. The company sells plans in all 50 U.S. states and the District of Columbia from 170 health insurance carriers. Its large staff of licensed agents assist consumers with little or no computer experience with their online enrollments.

In the United States, Medicare fraud is the claiming of Medicare health care reimbursement to which the claimant is not entitled. There are many different types of Medicare fraud, all of which have the same goal: to collect money from the Medicare program illegitimately.

<span class="mw-page-title-main">Northwest Kidney Centers</span>

Northwest Kidney Centers is a regional, not-for-profit community-based provider of kidney dialysis, public health education, and research into the causes and treatments of chronic kidney disease. Established in Seattle in 1962, it was the world's first out-of-hospital dialysis provider. It offers dialysis throughout the greater Seattle area in 20 free-standing clinics, eight hospitals and its home dialysis program. It opened its first clinic in Everett in 2020, the organization's first in Snohomish county.

Inovalon is an American technology company that provides cloud-based tools for healthcare.

<span class="mw-page-title-main">Elevance Health</span> American healthcare company

Elevance Health, Inc. is an American health insurance provider. Prior to June 2022, Elevance Health was named Anthem, Inc. The company's services include medical, pharmaceutical, dental, behavioral health, long-term care, and disability plans through affiliated companies such as Anthem Blue Cross and Blue Shield, Anthem Blue Cross in California, Wellpoint, and Carelon. It is the largest for-profit managed health care company in the Blue Cross Blue Shield Association. As of 2022, the company had 46.8 million members within its affiliated companies' health plans.

Sachin H. Jain is an American physician who held leadership positions in the Center for Medicare and Medicaid Services (CMS) and the Office of the National Coordinator for Health Information Technology (ONC). From 2015 to 2020, he served as president and chief executive officer of the CareMore Health System. In June 2020, it was announced that he would join the SCAN Group and Health Plan as its new president and CEO. He is also adjunct professor of medicine at the Stanford University School of Medicine and a Contributor at Forbes. In 2018, he was named one of American healthcare's most 100 most influential leaders by Modern Healthcare magazine (#36).

Amedisys, Inc. is an American healthcare company based in Baton Rouge, Louisiana. They are one of the largest home health providers and second largest hospice care provider in the United States.

Atrius Health is a Massachusetts based healthcare organization with a system of connected care for adult and pediatric patients in eastern and central Massachusetts. Atrius Health's medical practices work together with the home health and hospice services of its VNA Care subsidiary and in collaboration with hospital partners, community specialists and skilled nursing facilities. Atrius was acquired by Optum on May 31, 2022, which caused it to lose its tax-exempt status, although its charitable assets were transferred to the Atrius Health Equity Foundation.

SCA Health (SCA), is based in Deerfield, Illinois, with a network of 300+ ambulatory surgery centers (ASCs) in 35 states performing 1 million procedures a year. Since March 2017, the company is part of Optum.

Change Healthcare is a provider of revenue and payment cycle management that connects payers, providers, and patients within the U.S. healthcare system. The name also refers to a company founded in 2007 which subsequently became part of the current conglomerate. The company operates the largest financial and administrative information exchange in the United States.

Optum, Inc. is an American healthcare company that provides technology services, pharmacy care services and various direct healthcare services.

Diaverum is a Swedish multinational healthcare organisation that provides life-enhancing renal care to patients with chronic kidney disease. The company has over 450 clinics in 24 countries, Europe, Latin America, the Middle East and Asia.

References

  1. "Davita Inc. Proxy Statement". U.S. Securities and Exchange Commission. 25 April 2022.
  2. 1 2 3 "DaVita Inc. 2021 Form 10-K Annual Report". U.S. Securities and Exchange Commission. 11 February 2022.
  3. "Fortune 500: Davita". Fortune.
  4. "About DaVita". DaVita.
  5. 1 2 3 "TOTAL RENAL CARE HOLDINGS, INC. 1998 Form 10-K Annual Report" (PDF). U.S. Securities and Exchange Commission.
  6. "NME SELLING 70% STAKE IN DIALYSIS COMPANY". Modern Healthcare . April 25, 1994.
  7. 1 2 Zweig, Phillip L. (December 23, 1996). "At Dlj, Will Lbo Lightning Strike Twice?" . Bloomberg L.P.
  8. ABRAM, SUSAN (November 20, 1997). "Dialysis Firm to Purchase Rival for $1.2 Billion". Los Angeles Times .
  9. PELTZ, JAMES F. (July 20, 1999). "Total Renal Care Stock Takes 2nd Big Drop of Year". Los Angeles Times .
  10. Wartzman, Rick (July 19, 1999). "Total Renal's CEO and CFO Quit As Firm Issues a Results Warning" . The Wall Street Journal .
  11. Rundle, Rhonda L.; Lublin, Joann S. (October 19, 1999). "Total Renal Care Names Kent Thiry, Veteran in Dialysis Industry, as CEO" . The Wall Street Journal .
  12. "Total Renal Care Announces the Signing of Definitive Agreements for the Sale of Selected Non-Continental U.S. Operations" (Press release). PR Newswire. January 20, 2000.
  13. "Total Renal Care Holdings, Inc. Announces Legal Name Change to DaVita Inc" (Press release). PR Newswire. October 4, 2000.
  14. "DaVita Closes Gambro Healthcare Acquisition" (Press release). PR Newswire. October 5, 2005.
  15. "DaVita to Pay $350 Million to Resolve Allegations of Illegal Kickbacks" (Press release). United States Department of Justice. October 22, 2014.
  16. "DaVita to Pay $450 Million to Resolve Allegations That it Sought Reimbursement for Unnecessary Drug Wastage" (Press release). United States Department of Justice. June 24, 2015.
  17. "Hagens Berman Announces $383.5 Million Jury Verdict Against Dialysis Provider, DaVita, in Wrongful Death Lawsuits" (Press release). Business Wire. June 27, 2018.
  18. "DaVita Inc. and Former CEO Indicted in Ongoing Investigation of Labor Market Collusion in Health Care Industry" (Press release). United States Department of Justice. July 15, 2021.
  19. "DaVita, Ex-CEO Thiry Acquitted of Labor Collusion Charges". Associated Press. April 15, 2022.
  20. Barr, Paul (November 2, 2012). "DaVita completes HealthCare Partners deal". Modern Healthcare .
  21. Rubenfire, Adam (October 23, 2014). "DaVita HealthCare Partners acquires Colorado Springs practice". Modern Healthcare .
  22. WALLACE, ALICIA (March 1, 2016). "DaVita completes $385M Everett Clinic acquisition". The Denver Post .
  23. "HealthCare Partners Nevada Completes Acquisition of WellHealth Quality Care" (Press release). PR Newswire. May 2, 2017.
  24. "Medicare Advantage Provider to Pay $270 Million to Settle False Claims Act Liabilities" (Press release). United States Department of Justice. October 1, 2018.
  25. "Optum completes acquisition of DaVita Medical Group from DaVita" (Press release). Optum. June 19, 2019. Archived from the original on June 22, 2019. Retrieved June 22, 2019.