DaVita Inc.

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DaVita Inc.
TypePublic company
NYSE: DVA
S&P 500 component
IndustryHealthcare
Founded1979; 43 years ago (1979)
HeadquartersDenver, Colorado, United States
Key people
Javier J. Rodriguez, CEO
Peter Grauer, lead independent director
ServicesDialysis
RevenueIncrease $11.550 billion (2020)
Decrease $773 million (2020)
Total assetsDecrease $16.988 billion (2020)
Total equityDecrease $1.383 billion (2020)
OwnerBerkshire Hathaway 23.18%[1]
Number of employees
67,000 (2020)
Websitewww.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]

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 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 271st on the Fortune 500.[3]

The name "DaVita" was derived from the Italian language phrase "Dare Vita", which means "giving 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. According to the Department of Justice, "The indictment alleges that DaVita and Thiry both participated in two separate conspiracies to suppress competition for the services of certain employees. Count One charges DaVita and Thiry for conspiring with SCA to allocate senior-level employees by agreeing not to solicit each other’s senior-level employees from as early as February 2012 until as late as July 2017. Count Two charges DaVita and Thiry for conspiring with another health care company from as early as April 2017 until as late as June 2019 to allocate employees by agreeing that the other health care company would not solicit DaVita’s employees."[18]

Healthcare Partners[]

In 2012, DaVita acquired Healthcare Partners for $4.42 billion.[19] In 2014, it acquired Colorado Springs Health Partners, with 600 employees and 110,000 patients.[20] 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.[21] In September 2016, Healthcare Partners was renamed DaVita Medical Group. In May 2017, it acquired WellHealth Quality Care.[22] 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.[23] In June 2019, the division was sold to UnitedHealth Group's Optum division for $4.3 billion.[24]

References[]

  1. ^ Davita Inc. Proxy Statement
  2. ^ a b c "DaVita Inc. 2020 Form 10-K Annual Report". U.S. Securities and Exchange Commission.
  3. ^ "Fortune 500: Davita". Fortune.
  4. ^ "About DaVita". DaVita.
  5. ^ a b c "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. ^ a b 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". www.justice.gov. 2021-07-15. Retrieved 2021-07-15.
  19. ^ Barr, Paul (November 2, 2012). "DaVita completes HealthCare Partners deal". Modern Healthcare.
  20. ^ Rubenfire, Adam (October 23, 2014). "DaVita HealthCare Partners acquires Colorado Springs practice". Modern Healthcare.
  21. ^ WALLACE, ALICIA (March 1, 2016). "DaVita completes $385M Everett Clinic acquisition". The Denver Post.
  22. ^ "HealthCare Partners Nevada Completes Acquisition of WellHealth Quality Care" (Press release). PR Newswire. May 2, 2017.
  23. ^ "Medicare Advantage Provider to Pay $270 Million to Settle False Claims Act Liabilities" (Press release). United States Department of Justice. October 1, 2018.
  24. ^ "Optum completes acquisition of DaVita Medical Group from DaVita" (Press release). Optum. June 19, 2019.

External links[]

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