NN&I asked U.S. Renal Care some questions about the recent announcement of a merger with DSI Renal. The following answers were provided by a US Renal spokesperson.
NN&I: The announcement about U.S. Renal Care and DSI Renal is defined as a “merger.” Explain how that differs from an acquisition.
USRC: DSI Renal’s parent company will become a subsidiary of USRC. At the parent level, all of USRC’s current shareholders, and most of DSI’s shareholders, will remain shareholders of the combined company.
NN&I: Do you expect closure of clinics in areas where USRC already has a presence?
USRC: Currently, there are no plans to close any USRC or DSI clinics.
NN&I: From a strategic point of view, what, besides additional patient volume, does the merger do to meet USRC’s objectives moving forward? What does DSI Renal bring to the table?
USRC: USRC and DSI are a natural fit, with similar physician-led models and a shared commitment to providing high-quality, compassionate care. This merger builds upon our mission to expand access to care for more patients across the country. Moreover, USRC and DSI each have strong managers, and we will have the opportunity to bring these teams together and build even stronger regional and corporate leadership. We will also have greater opportunities to achieve purchasing savings and a more efficient corporate overhead. We look forward to turning these efficiencies into continued investments in resources and technologies that elevate patient care.
NN&I: Do you expect consolidation in management teams between the two companies?
USRC: As we move toward closing, we will work on developing a clear plan regarding organizational structure and reporting chains. There will be some changes, all in the interest of strong organization and quality patient care. USRC headquarters will remain in Plano. Because of the new markets we are entering, DSI’s Nashville office will continue to function as a major business office and support center. Chris Brengard will remain CEO of USRC, and USRC and DSI will work collaboratively regarding the deployment of USRC’s and DSI’s leadership.