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Tuesday, July 9, 2019

Dialysis firms hit on Trump plan to shake up kidney care market

Dialysis services providers DaVita (NYSE:DVA) and Fresenius Medical Care (NYSE:FMS) are down 1% and 3%, respectively, premarket (both on light volume) on the heels of a report from Politico that the Trump administration is planning to announce initiatives aimed at encouraging more kidney transplants and home-based treatment. The President is scheduled to unveil the strategy in a Wednesday morning speech. He is also mulling additional actions via executive order.
Concurrently, the U.S. Department of Health and Human Services (HHS) will announce new reimbursement models to incentivize a shift away from standalone clinics to the home, in addition to an agency-wide initiative to encourage home dialysis and better prevention and screening for kidney disease.
U.S. dialysis clinics generated $24B in revenue last year, mostly by DVA and FMS. Medicare spends more than $114B per year on kidney care.
Related ticker: American Renal Associates (NYSE:ARA)

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