DaVita HealthCare Partners Inc. reported a loss of $111 million, or $.52 per share, for the first quarter of 2015. The loss was a result of an estimated loss contingency related to a whistleblower settlement of $495 million, or $298 million after tax. Adjusted net income for the quarter was $187 million, or $0.86 per share, excluding the settlement fee.
During an investor call, CEO Kent Thiry commented on the recent settlement for a whistleblower suit in Atlanta.
"I think our overwhelming feelings about this—forget the thoughts—are just we're very disappointed in ourselves and really humbled by the fact that we are having to write a check this big… this is not how we ever envisioned ourselves spending time or your money. We did make some mistakes and we're accountable for that. It is not representative at all. In fact, it creates a wildly inaccurate perception around how seriously we take compliance."
Total U.S. dialysis treatments for the first quarter of 2015 were 6,262,635, or 81,758 treatments per day, representing a per day increase of 4.5% over the first quarter of 2014. Non-acquired treatment growth in the first quarter of 2015 was 3.9% over the first quarter of 2014 and normalized non-acquired treatment growth in the first quarter of 2015 was 4.5% over the first quarter of 2014.
The number of member months for which HCP provided capitated care during the first quarter of 2015 was approximately 2.5 million representing an increase of 5.6% as compared to the first quarter of 2014, inclusive of growth contributed from acquisitions.
As of March 31, 2015, DaVita provided dialysis services to approximately 181,000 patients at 2,290 outpatient dialysis centers, of which 2,197 centers are located in the United States and 93 centers are located in ten countries outside of the United States. During the first quarter of 2015, DaVita opened a total of 18 new dialysis centers, acquired one dialysis center, and closed two dialysis centers in the United States. DaVita also opened two new dialysis centers outside of the United States.
DaVita updated its consolidated operating income for 2015 to now be in the range of $1.8 billion to $1.925 billion. Previous consolidated operating income guidance for 2015 was in the range of $1.750 billion to $1.900 billion. The company also said it would updated its operating income for Kidney Care for 2015 to now be in the range of $1.575 billion to $1.650 billion. Previous operating income guidance for Kidney Care for 2015 was in the range of $1.525 billion to $1.625 billion. The company said they still expect operating income for HCP for 2015 to be in the range of $225 million to $275 million.
The projected ranges exclude the accrual of the estimated loss contingency, or any potential settlement payment, related to the whistleblower settlement in Atlanta.