DaVita Inc. announced Feb. 4 to acquire DSI Renal Inc for $690 million

[greg10]

Some of you in this forum are affected, as shown in this thread by Tyefly: http://ihatedialysis.com/forum/index.php?topic=21873.0;topicseen

DENVER—DaVita Inc. announced Feb. 4 that it has entered into a definitive agreement to acquire DSI Renal Inc. for approximately $690 million, subject to adjustments.

DaVita said it expects to close the transaction in the second or third quarter of this year.

Completion of the transaction is subject to customary closing conditions including Hart-Scott-Rodino antitrust clearance, according to the dialysis provider. In addition, DaVita said it anticipates that the company will have to divest some centers as a condition of the transaction.

DSI currently operates 106 dialysis centers serving approximately 8,000 patients. DSI's current annualized revenue is approximately $360 million.

"We look forward to joining the dedicated teammates and physicians associated with DSI in continuing to provide quality care to ESRD patients,” said Kent Thiry, Chairman and CEO of DaVita stated. “This acquisition introduces us to several new geographies and makes us a more effective competitor in selected areas. Through this acquisition we will be able to bring the broader line of DaVita chronic kidney disease services to DSI patients. These services will be beneficial for patients, physicians, payors, and taxpayers in providing more effective care and helping to reduce costs to the health care system."

Leif Murphy, president and CEO of DSI said, "DaVita has always shared DSI's commitment to improving the quality of life of our patients and to providing high quality care. We believe that combining with DaVita in today's complex healthcare environment will help us take our operations to the next level and greatly benefit our patients and staff."

http://www.renalbusiness.com/news/2011/02/davita-to-acquire-dsi-renal-for-690m.aspx

[Bill Peckham]

So that means DaVita was willing to pay $86,250 a patient, which is above the price they paid for the 2004 acquision of Gambro ($3.1 billion for 43,200 patients (about $71,750 per patient)). However it is well below what FMC paid for RCG in 2005 ($4.1 billion for 36,000 patients (about $128,000 per patient)).

[Chris]

Soo eventually dialysis centers will be  a monoply run company.The articles statements from the CEO's sounds more like they are lying through their teeth about how they care for patients from reading the threads on here.

[tyefly]

Yes  I will be very affected......  I have worked hard with my clinic giving them all sorts of information on how extended Dialysis is better...  and my Doctor too  has work hard for this....  writing directly to the Chief Medical officer....   may phone calls and time was put into this.....  I might be able to do extended until Davita takes over  but I am sure I will not be able to continue.... as Davita does not support anytime of nocturnal....   I am hoping they will buy the extended model.... and let me continue....   There is sometime evil that I a person has to fight ( so to speak ) to get better dialysis even when everyone knows that its better.... 

[greg10]

.. it is well below what FMC paid for RCG in 2005 ($4.1 billion for 36,000 patients (about $128,000 per patient)).

..
Leif Murphy, president and CEO of DSI said, "DaVita has always shared DSI's commitment to improving the quality of life of our patients and to providing high quality care. We believe that combining with DaVita in today's complex healthcare environment will help us take our operations to the next level and greatly benefit our patients and staff."

http://www.renalbusiness.com/news/2011/02/davita-to-acquire-dsi-renal-for-690m.aspx

Leif Murphy, CEO of DSI was an executive vice president with RCG back in 2004-2005 when RCG (Renal Care Group) sold out to FMC.  This guy is just doing his thing, flipping dialysis clinics, except now he is getting paid a little more.