Item 7.01
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Regulation FD Disclosure
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Now that the Company has entered into the Agreement and taken into account its
financial impact, the Company expects its 2017 operating income for its Kidney Care segment to be between $1.525 billion and $1.625 billion, and expects its 2017 operating income in its DaVita Medical Group segment to be roughly flat with 2016
adjusted operating income. The Company intends to provide its complete 2017 operating income guidance in its fourth quarter 2016 earnings announcement.
The information contained in Item 7.01 of this Form 8-K is being furnished and shall not be deemed to be filed for the purposes of
Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities of that section and shall not be incorporated by reference in any filing under the Securities Act of 1933, as
amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Cautionary Statement
This report on Form 8-K 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, and are qualified in their entirety by
reference to the full text of those risk factors in our SEC filings relating 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 DMGs 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 DMGs agreements may exceed our
compensation, the risk that reductions in reimbursement rates, including Medicare Advantage rates, and future regulations may negatively impact DMGs 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 DMGs healthcare provider networks could have an adverse effect on DMGs 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 DMGs 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.