DENVER, Jan. 9, 2017 /PRNewswire/ -- DaVita Inc. (NYSE:
DVA), a leading independent medical group and a leading provider of
kidney care services in the United
States, announced today that it has entered into a six year
supply agreement with Amgen, replacing prior agreements that were
to expire in 2018. This agreement continues DaVita's
long-term relationship with Amgen focused on serving kidney care
patients.
The agreement, among other things, provides for discount pricing
and rebates for Epogen and Aranesp. Through this agreement DaVita
has committed to purchase Epogen and Aranesp in amounts necessary
to meet a minimum percentage of the company's and its affiliates'
requirements for erythropoiesis stimulating agents in the United States. While the percentage varies
during the term of the agreement, in no year will it be less than
90% of ESA requirements.
DaVita is also providing initial 2017 guidance for its Kidney
Care business. Including the financial impact of this
agreement, the company expects 2017 operating income in its Kidney
Care segment to be between $1.525 billion
and $1.625 billion. Additionally, as the company had
previously stated, it expects 2017 operating income in its DaVita
Medical Group segment to be roughly flat with 2016 adjusted
operating income. The company intends to provide complete
2017 operating income guidance in its Q4 2016 earnings
announcement.
DaVita is a registered trademarks of DaVita Inc.
About DaVita Inc.
DaVita Inc., a Fortune 500®
company, is the parent company of DaVita Kidney Care and
HealthCare Partners, a DaVita Medical Group. DaVita Kidney
Care is a leading provider of kidney care in the
United States, delivering dialysis
services to patients with chronic kidney failure and end stage
renal disease. As of September 30, 2016, DaVita Kidney
Care operated or provided administrative services at 2,318
outpatient dialysis centers located in the United
States serving approximately 186,000 patients. The company
also operated 139 outpatient dialysis centers located in 11
countries outside the United
States. HealthCare Partners manages and operates medical
groups and affiliated physician networks
in California, Nevada, New
Mexico, Florida, Colorado and Washington in
its pursuit to deliver excellent-quality health care in a dignified
and compassionate manner. As of September 30,
2016 HealthCare Partners provided integrated care management
for approximately 750,000 patients. For more information, please
visit DaVita.com/about.
Forward Looking Statements
This release contains
forward-looking statements within the meaning of the federal
securities laws. These forward-looking statements are not
guarantees of future performance and are subject to risks,
uncertainties, and assumptions, including, among other things, the
uncertainties associated with the risk factors set forth in our SEC
filings, including our annual report on Form 10-K for the year
ended December 31, 2015, and our subsequent quarterly and
annual reports and our current reports on Form 8-K. The
forward-looking statements should be considered in light of these
risks and uncertainties.
These risks and uncertainties include, but are not limited to,
risks resulting from the concentration of profits generated by
higher-paying commercial payor plans for which there is continued
downward pressure on average realized payment rates, and a
reduction in the number of patients under such plans, which may
result in the loss of revenues or patients, and the extent to which
the ongoing implementation of healthcare exchanges or changes in
regulations or enforcement of regulations regarding the exchanges
results in a reduction in reimbursement rates for our services from
and/or the number of patients enrolled in higher-paying commercial
plans, a reduction in government payment rates under the Medicare
ESRD program or other government-based programs, the impact of the
CMS Medicare Advantage benchmark structure, risks arising from
potential federal and/or state legislation that could have an
adverse effect on our operations and profitability, changes in
pharmaceutical or anemia management practice patterns, payment
policies, or pharmaceutical pricing, legal compliance risks,
including our continued compliance with complex government
regulations and the provisions of our current Corporate Integrity
Agreement (CIA), and current or potential investigations by various
government entities and related government or private-party
proceedings, the restrictions on our business and operations
required by the CIA and other settlement terms, and the financial
impact thereof, continued increased competition from large- and
medium-sized dialysis providers that compete directly with us, our
ability to maintain contracts with physician medical directors,
changing affiliation models for physicians, and the emergence of
new models of care introduced by the government or private sector
that may erode our patient base and reimbursement rates such as
Accountable Care Organizations (ACOs), independent practice
associations (IPAs) and integrated delivery systems, our ability to
complete acquisitions, mergers or dispositions that we might be
considering or announce, or to integrate and successfully operate
any business we may acquire or have acquired, including DaVita
Medical Group (DMG), or to expand our operations and services to
markets outside the U.S., or to businesses outside of dialysis and
DMG's business, the variability of our cash flows, the risk that we
might invest material amounts of capital and incur significant
costs in connection with the growth and development of our
international operations, yet we might not be able to operate them
profitably anytime soon, if at all, risks arising from the use of
accounting estimates, judgments and interpretations in our
financial statements, the risk that laws regulating the corporate
practice of medicine could restrict the manner in which DMG
conducts its business, the risk that the cost of providing services
under DMG's agreements may exceed our compensation, the risk that
reductions in reimbursement rates, including Medicare Advantage
rates, and future regulations may negatively impact DMG's business,
revenue and profitability, the risk that DMG may not be able to
successfully establish a presence in new geographic regions or
successfully address competitive threats that could reduce its
profitability, the risk that a disruption in DMG's healthcare
provider networks could have an adverse effect on DMG's business
operations and profitability, the risk that reductions in the
quality ratings of health maintenance organization plan customers
of DMG could have an adverse effect on DMG's business, or the risk
that health plans that acquire health maintenance organizations may
not be willing to contract with DMG or may be willing to contract
only on less favorable terms. We base our forward-looking
statements on information currently available to us at the time of
this release. Except as required by law, we undertake no obligation
to update or revise any forward-looking statements, whether as a
result of changes in underlying factors, new information, future
events or otherwise.
Contact Information
Investors:
Jim Gustafson
(310) 536-2585
jim.gustafson@davita.com
Media:
Skip Thurman
(303) 876-6610
skip.thurman@davita.com
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SOURCE DaVita Inc.