DaVita (DVA) UBS Global Healthcare Conference 2024 summary

Key business highlights

• Revenue per treatment has exceeded expectations due to strong collections and improved revenue operations, with labor costs also improving more than anticipated.

• Patient volume remains below pre-COVID levels, with ongoing elevated mortality rates mirroring broader U.S. trends, attributed to lingering COVID effects, Long COVID, and delayed preventive care.

• New dialysis patient growth has returned to pre-COVID patterns, with no significant demographic or clinical shifts observed.

Revenue and reimbursement trends

• Revenue per treatment is driven by rate increases, favorable commercial and Medicare Advantage (MA) mix, and enhanced revenue operations, though future tailwinds are expected to moderate.

• Loss of enhanced ACA subsidies could reduce operating income by $25–$40 million annually from 2026–2028, with cumulative impact of $75–$120 million if premium tax credits are eliminated.

• Charitable premium assistance remains available and is factored into mitigation strategies.

Regulatory and policy updates

• The final ESRD rule includes phosphate binders in the bundle, with an add-on payment for implementation costs; potential legislative delays remain.

• The 50 basis point Medicare Fee-For-Service rate increase is positive but not material to overall 2025 outlook due to the shift toward MA.