DENVER, Feb. 13, 2024 /PRNewswire/ -- DaVita Inc. (NYSE: DVA) announced financial and operating results for the quarter and year ended December 31, 2023. "As we reflect on the past year, our 2023 financial performance highlighted the resilience of our business," said Javier Rodriguez, CEO of DaVita Inc. "The external challenges of recent years ultimately made us stronger, and with continued investment in our teammates, systems, and capabilities, we believe that we are well positioned for the years ahead. We ...

Operations and Services - As of December 31, 2023, the company operated 367 outpatient dialysis centers in 11 countries, serving approximately 49,400 patients[73] - The international dialysis centers are distributed as follows: Brazil (99), Poland (63), Germany (51), Malaysia (40), Colombia (35), United Kingdom (27), Saudi Arabia (26), Portugal (13), Singapore (6), Japan (5), and China (2)[74] Regulatory Compliance - The company has experienced delays in obtaining Medicare certifications from CMS, although recent changes have helped to limit these delays[80] - The company is subject to extensive and evolving federal, state, and local regulations, which require significant resources for compliance[76] - Violations of laws and regulations could lead to severe consequences, including loss of certifications and exclusion from federal healthcare programs[77] - The company’s dialysis centers are certified by CMS and must also secure additional state licenses where required[79] - The federal Anti-Kickback Statute imposes strict penalties for violations, including potential exclusion from Medicare and Medicaid programs[85] - The Stark Law prohibits physicians with financial relationships from referring patients for certain services unless exceptions apply, with significant penalties for violations[90] - The company has implemented controls to limit billing for services that may trigger the Stark Law, but misinterpretations could lead to adverse effects[94] - Any findings of regulatory violations could materially impact the company's business, financial condition, and reputation[89] - The federal False Claims Act (FCA) allows for penalties of up to three times the government's damages and approximately $28,000 per claim for false claims in healthcare[96] - The Civil Monetary Penalties Statute authorizes substantial civil monetary penalties, which can be up to three times the total amount claimed for each item or service[101] - The Health Insurance Portability and Accountability Act (HIPAA) imposes penalties of more than $50,000 per violation and up to $1.5 million per year for identical violations related to the impermissible use or disclosure of protected health information (PHI)[107] - Violations of state fraud and abuse laws could lead to criminal, civil, or administrative sanctions, impacting the company's operations and financial condition[98] - The company is subject to scrutiny regarding its procedures for identifying and processing overpayments, which could lead to liability under the FCA[96] Financial Performance and Risks - The company’s revenue and operating income are highly sensitive to the percentage of patients with higher-paying commercial health insurance, with any legislative changes potentially having a material adverse impact on the business[117] - The 21 Century Cures Act has increased the percentage of patients on Medicare Advantage (MA) plans compared to Medicare Part B plans, although future enrollment trends remain uncertain[120] - The implementation of California's AB 290 bill, which limits reimbursement for certain services, could have a material adverse impact on the company's financial condition[126] - The evolving regulatory landscape, including the No Surprises Act, adds complexity and uncertainty to the company's operations and financial outlook[122] - The company is primarily self-insured for various liabilities, which may expose it to risks if future claims exceed coverage[133] - A hypothetical increase in interest rates of 100 basis points is estimated to reduce net income by approximately $4.8 million, $21.4 million, and $33.8 million for the years ended December 31, 2023, 2022, and 2021, respectively[432] - As of December 31, 2023, the company has a total fixed and economically fixed debt of $8,078 million with an average interest rate of 4.28%[430] - The average interest rate for variable rate debt not subject to caps is 7.51%, with total variable rate debt amounting to $368 million[430] Competition and Market Landscape - The company faces intense competition in the U.S. dialysis industry, with many new entrants and established providers competing for acquisition targets and patient retention[130] - The largest competitor, Fresenius Medical Care, has cost advantages due to its ability to manufacture its own dialysis supplies and equipment[131] Workforce and Diversity - As of December 31, 2023, the company employed approximately 70,000 teammates, reflecting its commitment to human capital management[136] - The company has seen a 6% increase in representation of women at the VP level since 2018, surpassing 40% women VP representation for the first time in 2023[144] - 81% of teammates reported feeling a sense of belonging within the company community, reflecting the effectiveness of its Diversity & Belonging initiatives[143] - The company has celebrated over 20,000 promotions since the rollout of its Clinical Ladders program, which has now expanded to approximately 49,000 teammates[149] - The company’s total rewards program includes a 401(k) match, employee stock purchase plan, and financial planning support, aimed at attracting and retaining talent[153] - As of December 31, 2023, 78% of the company's U.S. workforce is composed of women, and 57% are people of color[144] - The company has invested in a comprehensive career development pipeline, with over 2,000 teammates actively enrolled in the Bridge to Your Dreams program as of December 31, 2023[151] - The company’s Board is composed of 40% women and 10% people of color, with a woman serving as the Chair of the Board[145] International Operations - International operations constitute approximately 12% of consolidated assets and approximately 6% of consolidated revenues for the year ended December 31, 2023[435] - Unrealized foreign currency translation gains (losses) were approximately 5.5%, 2.2%, and 4.7% of consolidated operating income for the years ended December 31, 2023, 2022, and 2021, respectively[435] - No single country constitutes more than 5% of consolidated assets, indicating a diversified international exposure[435] - Management does not consider exposure to foreign exchange risk significant to the consolidated enterprise due to the relatively small size of international operations[436] - The company has not engaged in transactions to hedge the exposure of international transactions or net investments to foreign currency risk as of December 31, 2023[436] Healthcare Initiatives - The Centers for Medicare & Medicaid Services (CMS) launched the ETC mandatory payment model in approximately 30% of dialysis clinics on January 1, 2021, aimed at improving quality of care and reducing expenditures[116] - The Kidney Care First (KCF) and Comprehensive Kidney Care Contracting (CKCC) models were implemented to help healthcare providers reduce costs and improve care quality for patients with late-stage chronic kidney disease and end-stage renal disease (ESRD)[116] - The company has integrated key COVID-19 practices into standard infection control workflows, ensuring continuity of care post-public health emergency[155] Data Protection and Privacy - The maximum fine for non-compliance with data protection laws in Brazil is 50 million Brazilian real (approximately $11 million) or 2% of the company's turnover[110] - Under the General Data Protection Regulation (GDPR), regulatory penalties can reach up to 4% of worldwide turnover or €20 million, whichever is greater[110] - Companies must comply with evolving state privacy laws, such as the California Consumer Privacy Act (CCPA), which provides for civil penalties and a private right of action for data breaches[111]

DaVita Inc. (DVA) is scheduled to release fourth-quarter 2023 results on Feb 13, after the closing bell.In the last reported quarter, the company’s earnings per share (EPS) of $2.85 surpassed the Zacks Consensus Estimate by 48.4%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on all occasions, delivering an earnings surprise of 36.6%, on average.Let’s see how things have shaped up prior to this announcement.Factors at PlayOn third-quarter 2023 earnings call in Novem ...

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks. ...

DENVER, Jan. 23, 2024 /PRNewswire/ -- DaVita Inc. (NYSE: DVA), announced today that it will hold its quarterly conference call to discuss fourth quarter results on Tuesday, February 13, 2024, at 5:00 p.m. Eastern Time. The company plans to release its results after market close the same day.This call is also being webcast and can be accessed at the DaVita IR web page. You can join this call as follows: Tuesday, February 13, 2024Starting at 5:00 p.m. ESTWebcast can be accessed using this link Dial in number: ...

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U.S. stock markets have retreated in January after a sharp rally in 2023. The euphoria surrounding technology stocks evaporated as the yield on the benchmark 10-Year U.S. Treasury Note returned northward, trading above 4%.This was primarily owing to the uncertainty regarding the time when the Fed would initiate the first cut in the benchmark interest rate. Recently, a few key Fed FOMC members said that although they believe that the rate hike regime is over, they are yet to be convinced that the economic co ...

The market rebounded Monday following the significant and much-needed pullback to start 2024. Stocks were more mixed on Tuesday as Wall Street waits for the start of fourth quarter earnings season later this week and the release of potentially key December inflation data.The quick rebound helped both the S&P 500 and the Nasdaq climb right back above their 21-day moving averages. More investors are trying to get on the right side of a potential rally to new highs this year and no one wants to get left behind ...