DaVita commends extension of Kidney Care Choices Model

DENVER - DaVita (NYSE: DVA), a leading provider of kidney care services with a market capitalization of $10.3 billion, has expressed support for the recent decision by the Center for Medicare and Medicaid Innovation (CMMI) to extend its Kidney Care Choices (KCC) Model for an additional year. The announcement, attributed to Misha Palecek, DaVita’s chief transformation officer, acknowledges the company’s role as a long-standing participant in value-based care initiatives and its commitment to improving kidney care. According to InvestingPro analysis, DaVita maintains a GREAT financial health score, positioning it well for continued innovation in healthcare delivery.

The KCC Model, which focuses on patient-centered care and collaboration among healthcare providers, aims to enhance health outcomes for individuals with kidney disease. DaVita’s involvement in the program is part of its broader effort to establish new standards in kidney care through integrated care systems developed with nephrology partners.

In 2022, DaVita and participating nephrologists launched 11 value-based care arrangements. Since then, the company has expanded its efforts, doubling the number of Kidney Contracting Entities (KCEs) to 22. According to recent reports, these arrangements have led to positive trends, including increased rates of transplantation, more patients starting dialysis with optimal access, and a growing number of patients receiving dialysis treatments at home. The company’s operational efficiency is reflected in its strong financial performance, with annual revenues reaching $13 billion and a healthy gross profit margin of 32.5%.

DaVita Inc. (NYSE: DVA) has been at the forefront of clinical quality and innovation in kidney care for over two decades. As of March 31, 2025, the company provided services to approximately 282,000 patients across 3,173 outpatient dialysis centers worldwide, with the majority of these centers located in the United States.

The extension of the KCC Model is seen as a step forward in the ongoing transformation of kidney care, with the expectation that the investments by CMMI and its partners will yield long-term savings and continue to drive improvements in patient care. Trading at a P/E ratio of 13.2, InvestingPro analysis suggests DaVita is currently undervalued, with additional insights available in the comprehensive Pro Research Report covering this prominent healthcare provider. Discover more detailed analysis and 8 additional ProTips by accessing the full InvestingPro report.

This report is based on a press release statement from DaVita.

In other recent news, DaVita Inc. has reported its first-quarter earnings for 2025, surpassing analysts’ expectations with an adjusted earnings per share (EPS) of $2.00, compared to the forecasted $1.96. The company also achieved revenue of $3.22 billion, slightly above the projected $3.20 billion. Despite these positive results, TD Cowen has maintained a Hold rating on DaVita but reduced the stock price target from $165 to $157, citing increased flu cases and weather-related impacts as factors contributing to underperformance in the first quarter. Additionally, DaVita has announced an upsizing of its senior notes offering to $1 billion from the initially planned $750 million, with proceeds intended primarily for repaying existing debts. The company has also faced significant operational challenges, including a cyber incident and a severe flu season, which have impacted treatment volumes and admissions. Nevertheless, DaVita has reiterated its full-year guidance for adjusted operating income and EPS, showing confidence in its ability to manage these challenges. The firm also repurchased $680 million in stock, demonstrating a commitment to shareholder value.

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