DENVER —DaVita Inc. has an operating income in the range of $314 million and $322 million and said there is a continued deterioration in its mix of treatments reimbursed by non-government payers as a percentage of total treatments, according to estimates the dialysis provider released Oct. 18.
DaVita said the actual third quarter operating results are expected to be released after market close on Nov. 3.
The company also announced diluted earnings per share from continuing operations in the range of $1.43 to $1.48, and normalized non-acquired treatment growth of approximately 4.6 percent.
“Our estimate of third quarter operating performance is driven by strong treatment volume growth and by decreased operating cost from a decline in utilization of physician-prescribed pharmaceuticals due to continued evolution of clinical practices and physicians responding to the new FDA label for Epogen,” DaVita wrote in a news release. “These estimated results exclude any unidentified unusual or nonrecurring material charges.”
DaVita also raised its operating income guidance for 2011 to now be in the range of $1.125 billion to $1.155 billion. This guidance excludes the non-cash goodwill impairment charge recorded in the second quarter of 2011. The previous operating income guidance for 2011 was in the range of $1.080 billion to $1.120 billion.
“This 2011 full-year guidance reflects anticipated declines in rates from the Veterans Administration and higher general and administrative spending in the fourth quarter,” DaVita said. “The above expectations regarding our results for the third quarter and guidance for 2011 are solely management estimates and projections based on currently available information.”
DaVita is also announcing that, as anticipated, it recently received a subpoena for documents in the previously disclosed grand jury investigation. “The subpoena was expected as part of the typical process in a healthcare investigation, and it is the first request for information that the company has received in this matter,” DaVita said. “Consistent with our discussion on our last quarterly earnings call, the scope of the document subpoena substantially overlaps with the OIG Dallas matter and appears to be limited to physician relationships. The investigation is still at an early stage. We always take these matters seriously and intend to continue cooperating with the government.”