DaVita HealthCare Partners Inc., the parent company of dialysis provider DaVita, reported that first-quarter profit fell to $30.2 million, or 28 cents a diluted share, from $140.1 million, or $1.46 a share, in the same quarter last year. The company said it had to set aside $300 million to cover potential settlements with federal investigators. Revenues for the dialysis provider totaled $2.83 billion, up from $1.85 billion last year. Analysts expected revenues of $2.78 billion.
(US District Court dismisses False Claims Act suit against DaVita)
In an investor conference call May 7, CEO Kent Thiry said the $300 million reserve is a part of an offer to settle all civil, administrative and criminal matters connected with two lawsuits regarding joint ventures and anti-kickback laws."To be clear, we may not reach a final settlement," Thiry said.
DaVita unsure of its involvement in renal ACO
DaVita's CEO also said the second largest dialysis provider in the United States may not participate in the Comprehensive ESRD Care initiative.
Thiry mentioned the Centers for Medicare & Medicaid Services' recent decision to extend the deadlines for applications and letters of intent for the Comprehensive ESRD Care initiative. " [The innovation center] has continued to be a constructive partner, listening to the community, so we are hopeful that there will be some changes to the program design," Thiry said. "And our participation, as you know, is contingent on seeing some changes in the design so that it is set up to be successful, because we do believe that if we're allowed to provide integrated care on a sustained basis to that population, we can do dramatically wonderful things for the patients, their families, physicians, caregivers and the taxpayer."