ON THE BUSINESS SIDE OF THINGS, dialysis care has seen rapid consolidation in the last decade. This was highlighted a few years ago by Fresenius’ acquisition of Renal Care Group and DaVita’s purchase of Gambro’s dialysis units. As a result, the two dialysis providers care for approximately 65 percent of the United States’ dialysis patient population. So where does the remaining 35 percent fit in?
Roughly 45 percent of centers not owned by Fresenius or DaVita are run by hospitals or non-profit organizations, according to DaVita’s 2007 annual report. The remaining clinics, however, are not going away any time soon. In its annual report, DaVita said they are facing more competition from medium-sized providers. “Because of the ease of entry into the dialysis business and the ability of physicians to be medical directors for their own center or centers, competition for growth in existing and expanding markets is not limited to large competitors with substantial financial resources,” DaVita wrote.
Joint ventures (JVs) between physicians and providers is a common model among the smaller providers. Therefore, Renal Business Today asked leaders from mid-sized companies their thoughts on the industry and what role joint ventures play in it. Below is a roundtable discussion, which includes Orestes Lugo, president, Renal CarePartners; Sergio Fernandez, senior vice president of Business Development, Satellite Healthcare; Sandra Flood, chief operating officer, Dreiling Medical Management; Javier Vergne-Morell, vice president of business development, Renal Ventures Management; and Mark Caputo, chief executive officer, Liberty Dialysis.
