DaVita Inc.

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DaVita Inc.
Public company
Traded asNYSEDVA
S&P 500 Index component
IndustryHealthcare
Founded1979; 41 years ago (1979)
HeadquartersDenver, Colorado, United States
Key people
Javier J. Rodriguez, CEO
Peter Grauer, lead independent director
ServicesDialysis
RevenueDecrease $11.388 billion (2019)
Increase $810 million (2019)
Total assetsDecrease $17.311 billion (2019)
Total equityDecrease $2.133 billion (2019)
OwnerBerkshire Hathaway 23.18%[1]
Number of employees
65,000 (2019)
Websitewww.davita.com
Footnotes / references
[2]

DaVita Inc. provides kidney dialysis services through a network of 2,753 outpatient dialysis centers in the United States, serving 206,900 patients, and 259 outpatient dialysis centers in 10 other countries serving 28,700 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. The company has a 37% market share in the U.S. dialysis market. It is organized in Delaware and based in Denver.[2]

In 2019, 69% of the company's revenues came from Medicare and other government-based health insurance programs. In 2019, 90% of the company's patients were covered by government-based health insurance programs. Commercial payers, which accounted for 31% of revenues in 2019, 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 188th on the Fortune 500.[3]

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

History[edit]

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]

Healthcare Partners[edit]

In 2012, DaVita acquired Healthcare Partners for $4.42 billion.[18] In 2014, it acquired Colorado Springs Health Partners, with 600 employees and 110,000 patients.[19] 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.[20] In September 2016, Healthcare Partners was renamed DaVita Medical Group. In May 2017, it acquired WellHealth Quality Care.[21] 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.[22] In June 2019, the division was sold to UnitedHealth Group's Optum division for $4.3 billion.[23]

References[edit]

  1. ^ Davita Inc. Proxy Statement
  2. ^ a b c "DaVita Inc. 2019 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. ^ Barr, Paul (November 2, 2012). "DaVita completes HealthCare Partners deal". Modern Healthcare.
  19. ^ Rubenfire, Adam (October 23, 2014). "DaVita HealthCare Partners acquires Colorado Springs practice". Modern Healthcare.
  20. ^ WALLACE, ALICIA (March 1, 2016). "DaVita completes $385M Everett Clinic acquisition". The Denver Post.
  21. ^ "HealthCare Partners Nevada Completes Acquisition of WellHealth Quality Care" (Press release). PR Newswire. May 2, 2017.
  22. ^ "Medicare Advantage Provider to Pay $270 Million to Settle False Claims Act Liabilities" (Press release). United States Department of Justice. October 1, 2018.
  23. ^ "Optum completes acquisition of DaVita Medical Group from DaVita" (Press release). Optum. June 19, 2019.

External links[edit]