DaVita's (DVA) Collaboration to Aid in Kidney Care Needs

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DaVita Inc.’s DVA subsidiary — DaVita Kidney Care — has an integrated care division known as DaVita Integrated Kidney Care (“DaVita IKC”) that recently introduced 11 value-based care programs throughout the United States. These programs have been launched in collaboration with around 1,000 kidney doctors, transplant providers, hospice providers and advanced care practitioners.

The aforementioned value-based programs are projected to reach an estimated 25,000 kidney patients with the aim of slowing the progression of chronic kidney disease (CKD) and boosting access to home dialysis and kidney transplantation.

It is worth mentioning here that the programs are part of the government’s new voluntary Kidney Care Choices (KCC) model, which is a value-based care demonstration that started on Jan 1, 2022, and will run for five performance years. DaVita IKC and its partners are participating in the Comprehensive Kidney Care Contracting (CKCC) option within KCC.

This announcement is likely to provide a boost to DaVita Kidney Care — the company’s major revenue-generating business.

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About one in seven (37 million) U.S. adults get affected with CKD and most people suffering from the same remain unaware of their deteriorating kidney function.

Per management at DaVita, these value-based care programs offer an opportunity to positively impact the lives of patients by reaching them with the correct interventions and education before the failure of their kidneys. Patients can get help in planning their future kidney care needs that can enhance their overall health and lower the total cost of care.

DaVita IKC anticipates doubling the number of patients getting integrated kidney care in the first performance year alone on the back of the launch of its CKCC programs. These programs, along with a number of value-based care programs with health plans throughout the United States will accelerate DaVita IKC’s objective of providing the benefits of integrated kidney care to all patients.

DaVita’s participation in value-based care programs reinforces the company’s commitment when it comes to unifying and boosting the experience and care of a patient’s kidney care journey.

Market Prospects

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Per a report by Mordor Intelligence, the CKD market is anticipated to register a CAGR of 6.6% during the forecast period (2022-2027). Hence, the announcement comes at an opportune time for DaVita.

Recent Developments

This month, DaVita acquired a transplant software company — MedSleuth — that will help the former to bolster its efforts to drive transplant innovation and strengthen its presence along a patient’s kidney care journey. This move reinforces DaVita’s commitment to health equity by improving access to transplantation.

In November 2021, the company announced that its DaVita Clinical Research (“DCR”) study has found that dialysis patients who received mRNA COVID-19 vaccines were at a lower risk of contracting the COVID-19 infection post-vaccination. The study also found that vaccinated patients were less likely to be hospitalized or die following breakthrough infection, unlike the unvaccinated patients.

There are other stocks from the broader medical space that have been striving to improve patients’ lives. One of them is Pacific Biosciences of California, Inc. PACB, also popularly known as PacBio, which recently partnered with Care4Rare Canada Consortium (“Care4Rare”) in order to study some of the most complicated unexplained rare disease cases within Canada. Per management at PacBio, this collaboration will help in finding answers to rare diseases. According to management, superior quality, long-read WGS is the future of rare disease research.

In December 2021, Medtronic plc MDT announced that the U.S. Centers for Medicare & Medicaid Services (“CMS”) would increase Medicare coverage for all kinds of continuous glucose monitors (CGMs), including adjunctive and non-adjunctive CGMs. The expanded Medicare coverage includes CGMs that can be integrated with Medtronic insulin pumps. Per Medtronic’s management, CMS’ efforts to assist more individuals with diabetes and empower them to choose the therapies that best suit their diabetes management requirements are laudable.

Again, in the same month, DENTSPLY SIRONA Inc. XRAY expanded its strategic partnership with 3Shape, which marks the next step according to their agreement. Following this collaboration, DENTSPLY SIRONA’s intraoral Primescan and Omnicam scanners can now directly merge with 3Shape’s lab software, thereby providing better workflows and patient outcomes.

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