DaVita

{{Infobox company

| name = DaVita Inc.

| logo = File:DaVita Inc logo.png

| image = DaVita Inc. panorama.jpg

| image_size =

| image_caption = Headquarters as seen from the Denver Millennium Bridge

| type = Public

| traded_as = {{ubl|{{NYSE|DVA}}|S&P 500 component}}

| industry = Healthcare

| founded = {{Start date and age|1979}}

| hq_location = Denver, Colorado, U.S.

| key_people = Javier J. Rodriguez (CEO)

| services = Kidney dialysis

| revenue = {{increase}} {{US$|12.8 billion|link=yes}} (2024)

| operating_income = {{increase}} {{US$|2.09 billion}} (2024)

| net_income = {{increase}} {{US$|1.25 billion}} (2024)

| assets = {{increase}} {{US$|17.3 billion}} (2024)

| equity = {{decrease}} {{US$|396 million}} (2024)

| num_employees = 76,000 (2024)

| owner = {{nowrap|Berkshire Hathaway (41.2%){{cite web |url=https://www.sec.gov/ix?doc=/Archives/edgar/data/927066/000092706624000078/dva-20240426.htm |title=Davita Inc. Proxy Statement |publisher=U.S. Securities and Exchange Commission |date=April 26, 2024}}}}

| website = {{URL|https://davita.com}}

| footnotes = {{cite web | url=https://www.sec.gov/ix?doc=/Archives/edgar/data/927066/000092706625000012/dva-20241231.htm | title=DaVita Inc. 2024 Form 10-K Annual Report | publisher=U.S. Securities and Exchange Commission |date=February 13, 2025}}

}}

DaVita Inc. provides kidney dialysis services through a network of 2,675 outpatient centers in the United States, serving 200,800 patients, and 367 outpatient centers in 11 other countries serving 49,400 patients. The company primarily treats end-stage renal disease (ESRD), which requires patients to undergo kidney dialysis 3 times per week for the rest of their lives unless they receive a kidney transplant via organ donation. The company has a 37% market share in the U.S. dialysis market. It is organized in Delaware and based in Denver.

In 2023, 67% of the company's revenues came from Medicare and other government-based health insurance programs. In 2023, 89% of the company's patients were covered by government-based health insurance programs. Commercial payers, which accounted for 33% of revenues in 2023, generate nearly all of the company's profit as they reimburse at a much higher rate than government-based health insurance programs.

The company is ranked 341st on the Fortune 500.{{cite web | url=https://fortune.com/company/davita/ | title=Fortune 500: Davita | publisher=Fortune | url-access=subscription}}

The name "DaVita" was derived from the Italian language phrase "Dare Vita", which means "to give life".{{cite web | url=https://www.davita.de/de/aerzte-und-pflegepersonal/ueber-uns/davita-deutschland | title=About DaVita | publisher=DaVita}}

History

The company was founded in 1979 as Medical Ambulatory Care, Inc., a subsidiary of National Medical Enterprises, Inc. (now Tenet Healthcare).{{cite web | url=http://pdf.secdatabase.com/409/0000898430-99-003846.pdf | title=TOTAL RENAL CARE HOLDINGS, INC. 1998 Form 10-K Annual Report | publisher=U.S. Securities and Exchange Commission}}

In August 1994, 70% of the company was acquired by DLJ Merchant Banking Partners in a leveraged buyout for $75.5 million,{{cite news | url=https://www.modernhealthcare.com/article/19940425/NEWS/404250317/nme-selling-70-stake-in-dialysis-company | title=NME SELLING 70% STAKE IN DIALYSIS COMPANY | work=Modern Healthcare | date=April 25, 1994}} including a $10.5 million investment by DLJ. 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.

By December 1996, DLJ had made a 386% return on its $10.5 million investment.{{cite news | url=https://www.bloomberg.com/news/articles/1996-12-22/at-dlj-will-lbo-lightning-strike-twice | title=At Dlj, Will Lbo Lightning Strike Twice? | first=Phillip L. | last=Zweig | work=Bloomberg L.P. | date=December 23, 1996 | url-access=subscription}}

On February 27, 1998, the company acquired Renal Treatment Centers for $1.3 billion in stock.{{cite news | url=https://www.latimes.com/archives/la-xpm-1997-nov-20-fi-55698-story.html | title=Dialysis Firm to Purchase Rival for $1.2 Billion | first=SUSAN | last=ABRAM | work=Los Angeles Times | date=November 20, 1997}}

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.{{cite news | url=https://www.latimes.com/archives/la-xpm-1999-jul-20-fi-57729-story.html | title=Total Renal Care Stock Takes 2nd Big Drop of Year | first=JAMES F. | last=PELTZ | work=Los Angeles Times | date=July 20, 1999}}{{cite news | url=https://www.wsj.com/articles/SB932349155855817221 | title=Total Renal's CEO and CFO Quit As Firm Issues a Results Warning | first=Rick | last=Wartzman | work=The Wall Street Journal | date=July 19, 1999 | url-access=subscription}}

In October 1999, Kent J. Thiry, then 43 years old, was named CEO.{{cite news | url=https://www.wsj.com/articles/SB940290499176310429 | title=Total Renal Care Names Kent Thiry, Veteran in Dialysis Industry, as CEO | first1=Rhonda L. | last1=Rundle | first2=Joann S. | last2=Lublin | work=The Wall Street Journal | date=October 19, 1999 | url-access=subscription}}

In 2000, the company sold its non-U.S. operations.{{cite press release | url=https://investors.davita.com/2000-1-20-Total-Renal-Care-Announces-the-Signing-of-Definitive-Agreements-for-the-Sale-of-Selected-Non-Continental-U-S-Operations | title=Total Renal Care Announces the Signing of Definitive Agreements for the Sale of Selected Non-Continental U.S. Operations | publisher=PR Newswire | date=January 20, 2000}}

In October 2000, the company was renamed DaVita Inc.{{cite press release | url=https://newsroom.davita.com/press-releases?item=122707 | title=Total Renal Care Holdings, Inc. Announces Legal Name Change to DaVita Inc. | publisher=PR Newswire | date=October 4, 2000}}

In October 2005, the company acquired Gambro Healthcare.{{cite press release | url=https://www.sec.gov/Archives/edgar/data/927066/000119312505199639/dex993.htm | title=DaVita Closes Gambro Healthcare Acquisition | publisher=U.S. Securities and Exchange Commission | date=October 5, 2005}}

In October 2014, the company agreed to pay $350 million to settle claims that it provided illegal kickbacks to doctors.{{cite press release | url=https://www.justice.gov/opa/pr/davita-pay-350-million-resolve-allegations-illegal-kickbacks | title=DaVita to Pay $350 Million to Resolve Allegations of Illegal Kickbacks | publisher=United States Department of Justice | date=October 22, 2014}}

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.{{cite press release | url=https://www.justice.gov/opa/pr/davita-pay-450-million-resolve-allegations-it-sought-reimbursement-unnecessary-drug-wastage | title=DaVita to Pay $450 Million to Resolve Allegations That it Sought Reimbursement for Unnecessary Drug Wastage | publisher=United States Department of Justice | date=June 24, 2015}}

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.{{cite press release | url=https://www.businesswire.com/news/home/20180627006371/en/Hagens-Berman-Announces-383.5-Million-Jury-Verdict | title=Hagens Berman Announces $383.5 Million Jury Verdict Against Dialysis Provider, DaVita, in Wrongful Death Lawsuits | publisher=Business Wire | date=June 27, 2018}}

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.{{Cite press release | title=DaVita Inc. and Former CEO Indicted in Ongoing Investigation of Labor Market Collusion in Health Care Industry | url=https://www.justice.gov/opa/pr/davita-inc-and-former-ceo-indicted-ongoing-investigation-labor-market-collusion-health-care | publisher=United States Department of Justice |date=July 15, 2021}}{{Cite news | url=https://www.usnews.com/news/business/articles/2022-04-15/davita-ex-ceo-thiry-acquitted-of-labor-collusion-charges | title=DaVita, Ex-CEO Thiry Acquitted of Labor Collusion Charges | agency=Associated Press | date=April 15, 2022}}

=Healthcare Partners=

In 2012, DaVita acquired Healthcare Partners for $4.42 billion.{{cite news | url=https://www.modernhealthcare.com/article/20121102/NEWS/311029964/davita-completes-healthcare-partners-deal | title=DaVita completes HealthCare Partners deal | first=Paul | last=Barr | work=Modern Healthcare | date=November 2, 2012}} In 2014, it acquired Colorado Springs Health Partners, with 600 employees and 110,000 patients.{{cite news | url=https://www.modernhealthcare.com/article/20141023/NEWS/310239958/davita-healthcare-partners-acquires-colorado-springs-practice | title=DaVita HealthCare Partners acquires Colorado Springs practice | first=Adam | last=Rubenfire | work=Modern Healthcare | date=October 23, 2014}} 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.{{cite news | url=https://www.denverpost.com/2016/03/01/davita-completes-385m-everett-clinic-acquisition/ | title=DaVita completes $385M Everett Clinic acquisition | first=ALICIA | last=WALLACE | work=The Denver Post | date=March 1, 2016 }} In September 2016, Healthcare Partners was renamed DaVita Medical Group. In May 2017, it acquired WellHealth Quality Care.{{cite press release | url=https://www.prnewswire.com/news-releases/healthcare-partners-nevada-completes-acquisition-of-wellhealth-quality-care-300449011.html | title=HealthCare Partners Nevada Completes Acquisition of WellHealth Quality Care | publisher=PR Newswire | date=May 2, 2017}} 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.{{cite press release | url=https://www.justice.gov/opa/pr/medicare-advantage-provider-pay-270-million-settle-false-claims-act-liabilities | title=Medicare Advantage Provider to Pay $270 Million to Settle False Claims Act Liabilities | publisher=United States Department of Justice | date=October 1, 2018}} In June 2019, the division was sold to UnitedHealth Group's Optum division for $4.3 billion.{{cite press release | url=https://www.optum.com/about/news/optum-completes-acquisition-davita.html | title=Optum completes acquisition of DaVita Medical Group from DaVita | publisher=Optum | date=June 19, 2019 | access-date=June 22, 2019 | archive-date=June 22, 2019 | archive-url=https://web.archive.org/web/20190622155110/https://www.optum.com/about/news/optum-completes-acquisition-davita.html | url-status=dead }}