DaVita

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'''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{{Citation needed|date=May 2025}}. It is organized in [[Delaware]] and based in [[Denver]].<ref name=10K/>

'''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{{Citation needed|date=May 2025}}. It is incorporated in [[Delaware]] and headquartered in [[Denver]].<ref name=10K/>

In 2023, 67% of the company's revenues came from [[Medicare (United States)|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.<ref name=10K/>

In 2023, 67% of the company's revenues came from [[Medicare (United States)|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.<ref name=10K/>

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

In August 1994, 70% of the company was acquired by [[DLJ Merchant Banking Partners]] in a [[leveraged buyout]] for $75.5 million,<ref>{{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}}</ref> including a $10.5 million investment by DLJ.<ref name=lbo/> 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.<ref name=199810K/>

In October 1995, the company became a [[public company]] via an [[initial public offering]], raising $107 million.<ref name=199810K/> By December 1996, DLJ had made a 386% return on its $10.5 million investment.<ref name="lbo">{{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}}</ref>

=== Acquisitions and divestments ===

By December 1996, DLJ had made a 386% return on its $10.5 million investment.<ref name=lbo>{{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}}</ref>

On February 27, 1998, the company acquired Renal Treatment Centers for $1.3 billion in stock.<ref name="199810K" /><ref>{{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}}</ref> 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.<ref>{{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}}</ref><ref>{{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}}</ref> In October 1999, Kent J. Thiry, then 43 years old, was named CEO.<ref>{{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}}</ref>

In 2000, the company sold its non-U.S. operations.<ref>{{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}}</ref> In October 2000, the company was renamed DaVita Inc.<ref>{{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}}</ref> The name "DaVita" was derived from the [[Italian language]] phrase "Dare Vita", which means "to give life".<ref>{{cite web |title=About DaVita |url=https://www.davita.de/de/aerzte-und-pflegepersonal/ueber-uns/davita-deutschland |publisher=DaVita}}</ref>

On February 27, 1998, the company acquired Renal Treatment Centers for $1.3 billion in stock.<ref name=199810K/><ref>{{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}}</ref>

In October 2005, the company acquired Gambro Healthcare.<ref>{{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}}</ref>

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.<ref>{{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}}</ref><ref>{{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}}</ref>

In 2012, DaVita acquired Healthcare Partners for $4.42 billion.<ref>{{cite news |last=Barr |first=Paul |date=November 2, 2012 |title=DaVita completes HealthCare Partners deal |url=https://www.modernhealthcare.com/article/20121102/NEWS/311029964/davita-completes-healthcare-partners-deal |work=[[Modern Healthcare]]}}</ref> In September 2016, Healthcare Partners was renamed DaVita Medical Group.{{Citation needed|date=July 2025}} In June 2019, the division was sold to [[UnitedHealth Group]]'s [[Optum]] division for $4.3 billion.<ref>{{cite press release |title=Optum completes acquisition of DaVita Medical Group from DaVita |date=June 19, 2019 |publisher=[[Optum]] |url=https://www.optum.com/about/news/optum-completes-acquisition-davita.html |access-date=June 22, 2019 |url-status=dead |archive-url=https://web.archive.org/web/20190622155110/https://www.optum.com/about/news/optum-completes-acquisition-davita.html |archive-date=June 22, 2019}}</ref>

In October 1999, Kent J. Thiry, then 43 years old, was named CEO.<ref>{{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}}</ref>

In 2014, DaVita acquired Colorado Springs Health Partners, with 600 employees and 110,000 patients.<ref>{{cite news |last=Rubenfire |first=Adam |date=October 23, 2014 |title=DaVita HealthCare Partners acquires Colorado Springs practice |url=https://www.modernhealthcare.com/article/20141023/NEWS/310239958/davita-healthcare-partners-acquires-colorado-springs-practice |work=[[Modern Healthcare]]}}</ref>

In 2000, the company sold its non-U.S. operations.<ref>{{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}}</ref>

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.<ref>{{cite news |last=WALLACE |first=ALICIA |date=March 1, 2016 |title=DaVita completes $385M Everett Clinic acquisition |url=https://www.denverpost.com/2016/03/01/davita-completes-385m-everett-clinic-acquisition/ |work=[[The Denver Post]]}}</ref>

In October 2000, the company was renamed DaVita Inc.<ref>{{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}}</ref> The name "DaVita" was derived from the [[Italian language]] phrase "Dare Vita", which means "to give life".<ref>{{cite web |title=About DaVita |url=https://www.davita.de/de/aerzte-und-pflegepersonal/ueber-uns/davita-deutschland |publisher=DaVita}}</ref>

In May 2017, it acquired WellHealth Quality Care.<ref>{{cite press release |title=HealthCare Partners Nevada Completes Acquisition of WellHealth Quality Care |date=May 2, 2017 |publisher=[[PR Newswire]] |url=https://www.prnewswire.com/news-releases/healthcare-partners-nevada-completes-acquisition-of-wellhealth-quality-care-300449011.html}}</ref>

In October 2005, the company acquired Gambro Healthcare.<ref>{{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}}</ref>

== Legal issues ==

In October 2014, the company agreed to pay $350 million to settle claims that it provided illegal [[Kickback (bribery)|kickback]]s to doctors.<ref>{{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}}</ref>

In October 2014, the company agreed to pay $350 million to settle claims that it provided illegal [[Kickback (bribery)|kickback]]s to doctors.<ref>{{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}}</ref>

In June 2018, a jury awarded the families of 3 of the company's patients $383 million in [[wrongful death claim]]s after the patients died from [[cardiac arrest]] after undergoing treatment at DaVita centers.<ref>{{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}}</ref>

In June 2018, a jury awarded the families of 3 of the company's patients $383 million in [[wrongful death claim]]s after the patients died from [[cardiac arrest]] after undergoing treatment at DaVita centers.<ref>{{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}}</ref>

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.<ref>{{cite press release |title=Medicare Advantage Provider to Pay $270 Million to Settle False Claims Act Liabilities |date=October 1, 2018 |publisher=[[United States Department of Justice]] |url=https://www.justice.gov/opa/pr/medicare-advantage-provider-pay-270-million-settle-false-claims-act-liabilities}}</ref>

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.<ref>{{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}}</ref><ref>{{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}}</ref>

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.<ref>{{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}}</ref><ref>{{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}}</ref>

In May 2025, the benefits fund of the [[United Food and Commercial Workers]] [[UFCW Local 1776|Local 1776]] filed a proposed [[Class action|class-action]] lawsuit against DaVita and [[Fresenius Medical Care]], a rival dialysis provider, alleging that the two companies illegally [[Conspiracy|conspired]] to inflate treatment costs for dialysis patients by billions of dollars.<ref>{{Cite news |last=Scarcella |first=Mike |date=2025-05-12 |title=Dialysis giants DaVita and Fresenius Medical sued by employee benefits plan |url=https://www.reuters.com/legal/government/dialysis-giants-davita-fresenius-medical-sued-by-employee-benefits-plan-2025-05-12/ |access-date=2025-06-24 |work=[[Reuters]] |language=en}}</ref>

In May 2025, the benefits fund of the [[United Food and Commercial Workers]] [[UFCW Local 1776|Local 1776]] filed a proposed [[Class action|class-action]] lawsuit against DaVita and [[Fresenius Medical Care]], a rival dialysis provider, alleging that the two companies illegally [[Conspiracy|conspired]] to inflate treatment costs for dialysis patients by billions of dollars.<ref>{{Cite news |last=Scarcella |first=Mike |date=2025-05-12 |title=Dialysis giants DaVita and Fresenius Medical sued by employee benefits plan |url=https://www.reuters.com/legal/government/dialysis-giants-davita-fresenius-medical-sued-by-employee-benefits-plan-2025-05-12/ |access-date=2025-06-24 |work=[[Reuters]] |language=en}}</ref>

===Healthcare Partners===

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

==References==

==References==