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DaVita Inc. is a leading provider of dialysis and related lab services in the United States, primarily serving patients with chronic kidney failure, also known as end stage renal disease (ESRD) or end stage kidney disease (ESKD) . The company operates 2,675 outpatient dialysis centers in the U.S., serving approximately 200,800 patients as of December 31, 2023, making it a major revenue driver . In addition to its U.S. operations, DaVita offers integrated kidney care services, international dialysis operations, and various ancillary services, including clinical research and transplant software .
- U.S. Dialysis Business - Provides dialysis and related lab services to patients with chronic kidney failure, operating 2,675 outpatient centers and serving approximately 200,800 patients in the U.S. .
- Integrated Kidney Care (IKC) - Offers advanced integrated care management services to health plans and government programs for patients with ESKD and chronic kidney disease (CKD), showing significant growth .
- International Operations - Manages 367 outpatient dialysis centers across 11 countries, serving about 49,400 patients .
- Ancillary Services - Includes clinical research through DaVita Clinical Research, a transplant software business called MedSleuth, and a venture group focused on innovative kidney disease solutions .
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Christopher Berry Executive | Chief Accounting Officer | None | Christopher Berry became CAO in September 2023. He previously held roles at Sonder Holdings and Alaska Air Group, bringing extensive accounting and financial expertise to DaVita. | |
David P. Maughan Executive | Chief Operating Officer, Kidney Care | None | David P. Maughan became COO in September 2024. He has been with DaVita since 2006 and has held various leadership roles, impacting over 65,000 employees and 200,000 patients. | |
James O. Hearty Executive | Chief Compliance Officer | Board Member at Urban Peak | James O. Hearty has been the CCO since March 2018. He previously worked as a prosecutor and trial attorney with the U.S. Department of Justice. | |
Javier J. Rodriguez Executive | Chief Executive Officer | Board Member at Gilead Sciences, Inc. | Javier J. Rodriguez has been the CEO of DaVita since June 2019. He joined DaVita in 1998 and has held various leadership roles, contributing significantly to the company's growth and operational success. | View Report → |
Joel Ackerman Executive | Chief Financial Officer and Treasurer | Chairman of the Board at Champions Oncology, Board Member at One Acre Fund | Joel Ackerman became CFO in February 2017 and Treasurer in April 2019. He has extensive experience in healthcare and finance, previously serving as CEO of Champions Oncology. | |
Kathleen A. Waters Executive | Chief Legal and Public Affairs Officer | None | Kathleen A. Waters joined DaVita as Chief Legal Officer in May 2016 and became Chief Legal and Public Affairs Officer in February 2021. She oversees legal and regulatory functions. | |
Michael D. Staffieri Executive | Chief Operating Officer, Kidney Care | None | Michael D. Staffieri has been COO since March 2014. He joined DaVita in 2000 and has held various roles, including Senior Vice President, Kidney Care. | |
Adam H. Schechter Board | Director | Chairman of the Board, President, and CEO of Labcorp | Adam H. Schechter has been an independent director since 2022. He is the Chairman, President, and CEO of Labcorp and has extensive experience in the healthcare industry. | |
Barbara J. Desoer Board | Director | Chair of Citibank, N.A., Director of Citigroup, Inc., Advisory Board Member at InStride | Barbara J. Desoer has been an independent director since 2015. She has extensive management experience and a deep understanding of regulated businesses. | |
Charles G. Berg Board | Director | Senior Advisor at The Cigna Group, Operating Council & Senior Advisory Board Member at Consonance Capital Partners | Charles G. Berg has been a director since 2007. He has significant expertise in healthcare, particularly in operational, financial, and regulatory aspects. | |
Dennis W. Pullin Board | Director | President and CEO of Virtua Health, Board Member at Hillenbrand, Inc. | Dennis W. Pullin joined the Board in April 2024. He is the President and CEO of Virtua Health and has over 30 years of executive leadership experience in healthcare. | |
Gregory J. Moore Board | Director | Director at Olink Holding AB | Gregory J. Moore has been an independent director since 2021. He has a background in digital health and AI, having held leadership roles at Microsoft and Google. | |
Jason M. Hollar Board | Director | CEO and Board Member at Cardinal Health, Inc. | Jason M. Hollar has been an independent director since May 2022. He is the CEO of Cardinal Health and has over 25 years of financial and operational experience. | |
Pamela M. Arway Board | Independent Chair of the Board | Board Member at Iron Mountain Inc., The Hershey Company | Pamela M. Arway has been an Independent Director since May 2009 and Chair since June 2020. She has extensive leadership experience in global business and governance. | |
Phyllis R. Yale Board | Director | Advisory Partner at Bain & Company, Director at Bristol-Myers Squibb Company, Director at Blue Cross Blue Shield of Massachusetts | Phyllis R. Yale has been an independent director since 2016. She has extensive expertise in healthcare, corporate strategies, and governance. | |
Wendy L. Schoppert Board | Director | Board Member at The ODP Corporation, Big Lots, Inc. | Wendy L. Schoppert joined the Board in July 2023. She has a background in finance, IT, marketing, and operations, with experience in consumer goods, transportation, and retail. |
- Given that missed treatments were elevated and census growth was below expectations due to elevated mortality, what specific strategies are you implementing to drive volume growth in the back half of the year without relying solely on additional treatment days?
- You mentioned that your improved RPT growth expectations are partly due to modestly higher rate increases from health plan negotiations that still don't fully offset high inflation; how sustainable are these RPT improvements, and what risks do you foresee in maintaining or enhancing these rates amid ongoing inflationary pressures?
- With the inclusion of approximately $60 million in center closure costs in your adjusted operating income and the change in your non-GAAP reporting, can you elaborate on the factors leading to these closures and how they might impact your operational efficiency and cost structure moving forward?
- You're considering increasing debt to maintain leverage within your target range of 3x to 3.5x, potentially for growth investments or share repurchases; how are you balancing the risks associated with additional debt in the current economic climate, and what criteria are you using to prioritize capital allocation?
- Regarding the CMS's proposed inclusion of oral-only drugs in the ESRD bundle, which you support despite it potentially under-reflecting true cost inflation, how do you anticipate this change will affect your cost structure and margins, and what measures are you taking to mitigate potential financial impacts?
Competitors mentioned in the company's latest 10K filing.
| Company | Description |
|---|---|
Our largest competitor manufactures a full line of dialysis supplies and equipment in addition to owning and operating outpatient dialysis centers worldwide. This may, among other things, give them cost advantages over us because of their ability to manufacture their own products. Additionally, they have been one of our largest suppliers of dialysis products and equipment over the last several years. In 2021, we entered into and subsequently extended a new agreement with them to purchase a certain amount of dialysis equipment, parts and supplies which extends through December 31, 2024. The amount of purchases from them over the remaining term of this agreement will depend upon a number of factors, including the operating requirements of our centers, the number of centers we acquire, and growth of our existing centers. |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
International Dialysis Center (1 center) | 2024 | The acquisition was completed during the three months ended September 30, 2024, with the cash payment included in a total of $161.2 million in acquisitions, assuming liabilities of $54.03 million and recognizing a fair value of $67.53 million for previously held equity investments. |
U.S. Dialysis Centers (10 centers) | 2024 | Completed in Q1 2024, this deal involved a net cash payment of $105.2 million, assumed liabilities of $357,000, a fair value of equity investments of $67.5 million, a non-cash gain of $35.1 million, and generated $137.3 million in goodwill (with $59.5 million deductible for tax). |
International Dialysis Centers (24 centers) | 2024 | Acquired during Q2 2024, these 24 centers in 13 countries support DaVita’s global expansion strategy, furthering its international footprint to operate 452 centers as of June 30, 2024 and aligning with its aim to become a leading global provider. |
International Dialysis Centers (67 centers) | 2024 | In Q1 2024, DaVita acquired 67 international centers with a net cash payment of $105,163,000, assumed liabilities of $43,024,000, and recognized $137,290,000 in goodwill along with noncontrolling interests valued at $20,258,000. |
U.S. Dialysis Centers (9 centers) | 2024 | Also in Q1 2024, this acquisition involved a net cash payment of $105,163,000, minimal liabilities of $357,000, and a non-cash gain of $35,147,000 as part of consolidating a previously nonconsolidated U.S. dialysis partnership. |
Controlling Interest in U.S. Dialysis Partnership | 2024 | Completed in Q1 2024, this transaction involved acquiring a controlling interest in a U.S. dialysis partnership, with a non-cash gain of $35.1 million recognized due to the fair value adjustment of existing equity interests, and included assets and liabilities recorded at fair value at the acquisition date. |
Chile Dialysis Acquisition | 2024 | Finalized in March 2024 as part of an agreement with Fresenius Medical Care, this deal marked DaVita’s entry into the Chilean market and broader Latin American strategy, with total cash payments for four countries amounting to approximately $237 million (subject to adjustments). |
Ecuador Dialysis Acquisition | 2024 | As part of the multi-country deal with Fresenius, the acquisition of Ecuador’s dialysis service operations closed in the first half of 2024, contributing to DaVita’s aim of becoming the largest dialysis provider in Latin America with more than 500 centers across 13 countries. |
Colombia Dialysis Acquisition | 2024 | Expected to close in the second half of 2024 and subject to customary regulatory approvals, this acquisition is part of the broader $180 million transaction (also covering Brazil) designed to strengthen DaVita's Latin American presence. |
Brazil Dialysis Acquisition | 2024* | Although announced in 2024 as part of the agreement with Fresenius Medical Care, this acquisition is planned to close in Q1 2025 and is integrated within a strategy to invest $300 million to expand operations in Brazil and Colombia and for market entry in Chile and Ecuador, with remaining payments around $180 million. |
Mozarc Medical Holding LLC | 2023 | Closed on April 1, 2023, this joint venture between DaVita and Medtronic involved a cash payment of $44.7 million, non-cash contributions of $14 million, and additional funding of $224.4 million from each party, with contingent consideration of up to $300 million if milestones are met, aimed at advancing innovative kidney health technologies. |
Dialysis Centers Outside the U.S. (3 centers) | 2022 | Completed during the three months ended March 31, 2022, this acquisition involved net cash of $5,166, contingent earn-out obligations of $245, and liabilities of $2,251, with $4,442 in tax-deductible goodwill and certain items pending final quantification. |
Recent press releases and 8-K filings for DVA.
- Davita Inc. completed a private offering of $1.0 billion 6.750% Senior Notes due 2033, netting approximately $986 million; proceeds will be used to repay an $830 million revolving credit facility and for general corporate purposes.
- The Senior Notes bear a 6.750% interest rate, mature on July 15, 2033, and include optional redemption features effective from July 15, 2028.
- DaVita Inc. upsized its senior notes offering from $750 million to $1 billion, pricing the 2033 notes at 100.000% of face value with a 6.750% coupon.
- Net proceeds will be used to repay outstanding revolving credit facility borrowings, cover offering-related costs, and fund general corporate purposes—including potential stock repurchases and capital expenditures.
- The offering is a private placement available exclusively to qualified institutional buyers and certain non-U.S. persons under Rule 144A and Regulation S.
- The offering is expected to close on May 23, 2025.
- Ransomware incident detected on April 12, 2025 impacted certain network systems, prompting the activation of containment measures.
- The company is working with third-party cybersecurity experts and has notified law enforcement, though the full scope and duration of the impact remain uncertain.
- Volume Recovery & Operating Income: Management remains confident that volumes will recover over time, enabling them to deliver 3% to 7% operating income growth even with current lower volume levels.
- Oral Phosphate Binders Reimbursement: The discussion detailed how reimbursement under TDAPA for oral phosphate binders is driven by patient volume, drug mix, and internal cost factors, highlighting key risks and opportunities in profitability.
- Share Repurchase Agreement: The call explained the ongoing share repurchase mechanism with Berkshire Hathaway to maintain their ownership around 45%, noting a recent open-market sale of 750,000 shares and its implications for future buybacks.
- International and Dialysis Initiatives: There was also insight into the Latin America acquisitions and the integration challenges, as well as an update on home dialysis penetration trends, with current levels near 15% and progress towards an aspirational 25% target.