(Adds details, compares with analysts' estimates)
Feb 16 DaVita Inc reported a
better-than-expected quarterly profit on Thursday as demand rose
for its kidney care services.
The U.S. dialysis service provider's shares were up 2.61
percent at $66.30 in after-market trading.
The results come amid growing controversy over attempts by
the U.S. Department of Health and Human Services to prevent
dialysis providers from using premium assistance from outside
charities to steer patients into Obamacare individual insurance
plans instead of Medicare or Medicaid to receive higher payments
for medical services.
Both DaVita and German rival Fresenius Medical Care
received subpoenas from U.S. federal prosecutors last
month investigating their ties with a charity that helps
patients pay for kidney dialysis. The charity, the American
Kidney Fund, also received a subpoena.
DaVita has alleged that the rule violates federal law and
could cause "irreparable harm" to dialysis patients.
A U.S. court last month upheld a temporary hold on the rule,
which was announced on Dec. 14.
Net income attributable to the company was $157.7 million,
or 80 cents per share, in the fourth quarter ended Dec. 31,
compared with a loss of $6 million, or 3 cents per share, a year
Excluding items, the company earned 98 cents per share,
beating the average analyst estimate of 91 cents, according to
Thomson Reuters I/B/E/S.
Revenue rose to $3.72 billion from $3.53 billion. Analysts
had expected $3.74 billion.
DaVita said total U.S. dialysis treatments in the latest
quarter represented a per day increase of 3.7 percent from a
The company said it expected 2017 adjusted operating income
to be between $1.64 billion and $1.78 billion.
The Denver, Colorado-based company forecast 2017 adjusted
operating income for its kidney care business to be between
$1.53 billion and $1.63 billion.