DaVita warns of closing clinics due to federal cuts
Monday, August 12, 2013 | By Scott | No CommentsEd Sealover
Denver Business Journal
Following a “weak quarter” in part of its business, Kent Thiry, chairman and CEO of DaVita HealthCare Partners Inc. (NYSE: DVA), said Tuesday that the kidney-care provider would have to start closing inner-city and rural clinics if the federal government goes through with its proposed 9.4 percent reimbursement cut to dialysis providers of Medicare patients in 2014.
Thiry didn’t say how many clinics the Denver-based company would have to close. But company officials confirmed they would be those that don’t have enough private payers to subsidize the large number of Medicare and Medicaid patients the company treats, as both programs reimburse at such a low level that they’re money losers for DaVita.
“If they can’t reimburse, there will be changes to patient access to care. There’s no two ways about it,” Thiry said during DaVita’s second-quarter earnings call. “Inevitably, some centers will close, and they will tend to be those centers that serve the most vulnerable populations.”
DaVita reported net income of $254.4 million…