Kidney Dialysis Centers
Description
Companies in this industry provide outpatient kidney dialysis services. Major companies include US-based DaVita Dialysis Clinic and US Renal Care, along with Fresenius Medical Care and B Braun (both based in Germany).
The global dialysis market generated about $98.5 billion in 2024, according to Fortune Business Insights. About 2 million people in the world receive dialysis treatment. Demand for kidney dialysis services is growing in emerging economies where access to care has been historically insufficient.
The US kidney dialysis industry includes about 7,800 centers with combined annual revenue of about $25 billion.
COMPETITIVE LANDSCAPE
Demand depends on the number of people who suffer from kidney disease. The profitability of individual companies is linked to efficient operations and good marketing. Large companies have economies of scale in administrative costs, which has driven consolidation in the industry. Small operators can compete successfully if they have centers in desirable locations or good relations with doctors who refer patients. The US industry is highly concentrated: the 50 largest firms account for more than 95% of revenue.
About 810,000 people in the US receive treatment for end-stage renal disease (ESRD), with about 70% on dialysis and more than 30% with a kidney transplant.
PRODUCTS, OPERATIONS & TECHNOLOGY
Advanced chronic kidney disease, also called end-stage renal disease (ESRD), involves irreversible loss of kidney function and requires regular dialysis treatment or a kidney transplant to sustain life. Scarcity of available donor kidneys limits the number of transplants, so most ESRD patients rely on dialysis treatments. Dialysis is not a cure but a blood-filtering process that prolongs life through the removal of toxic waste products and excess fluids from the body. ESRD patients must undergo dialysis for the rest of their lives. Major revenue source is from patient care, related to ICD-10 major category.
A number of conditions, including diabetes, hypertensions, glomerulonephritis, and inherited diseases, can cause chronic kidney disease. Diabetes and high blood pressure are the top two causes; diabetes alone accounts for a significant percentage of ESRD patients, according to the National Library of Medicine. Patients with acute kidney injury (also known as acute kidney failure) suffer sudden loss of kidney function from an injury, drug use, or illness. These patients may also sometimes need dialysis, but the condition is reversible.
Hemodialysis is the most common form of dialysis treatment for ESRD. The hemodialysis process involves passing a patient's blood through a machine that includes pumps; monitors; a dialysis filter (dialyzer); and various chemical solutions to remove toxins, fluids, and chemicals. The treatment process lasts about four hours and patients require treatment three times per week. Machines are made by several companies, including Baxter, Fresenius, and B. Braun Avitum.
Center operations involve acquiring and maintaining dialysis machines and other equipment, managing staff, scheduling appointments, providing treatments, and billing. Although larger centers would be more efficient, the size of centers is limited by the distance patients can reasonably travel to get there. A new center can be expensive: for example, DaVita's new outpatient dialysis centers can cost about $2.3 million for leasehold improvements and other capital expenditures.
In addition to dialysis treatments, centers may provide lab testing services, support for home dialysis, in-hospital dialysis services for acutely sick patients, and infusion services for drugs such as erythropoietin (EPO). Some companies also manage in-hospital centers for a fee.
The global dialysis market generated about $98.5 billion in 2024, according to Fortune Business Insights. About 2 million people in the world receive dialysis treatment. Demand for kidney dialysis services is growing in emerging economies where access to care has been historically insufficient.
The US kidney dialysis industry includes about 7,800 centers with combined annual revenue of about $25 billion.
COMPETITIVE LANDSCAPE
Demand depends on the number of people who suffer from kidney disease. The profitability of individual companies is linked to efficient operations and good marketing. Large companies have economies of scale in administrative costs, which has driven consolidation in the industry. Small operators can compete successfully if they have centers in desirable locations or good relations with doctors who refer patients. The US industry is highly concentrated: the 50 largest firms account for more than 95% of revenue.
About 810,000 people in the US receive treatment for end-stage renal disease (ESRD), with about 70% on dialysis and more than 30% with a kidney transplant.
PRODUCTS, OPERATIONS & TECHNOLOGY
Advanced chronic kidney disease, also called end-stage renal disease (ESRD), involves irreversible loss of kidney function and requires regular dialysis treatment or a kidney transplant to sustain life. Scarcity of available donor kidneys limits the number of transplants, so most ESRD patients rely on dialysis treatments. Dialysis is not a cure but a blood-filtering process that prolongs life through the removal of toxic waste products and excess fluids from the body. ESRD patients must undergo dialysis for the rest of their lives. Major revenue source is from patient care, related to ICD-10 major category.
A number of conditions, including diabetes, hypertensions, glomerulonephritis, and inherited diseases, can cause chronic kidney disease. Diabetes and high blood pressure are the top two causes; diabetes alone accounts for a significant percentage of ESRD patients, according to the National Library of Medicine. Patients with acute kidney injury (also known as acute kidney failure) suffer sudden loss of kidney function from an injury, drug use, or illness. These patients may also sometimes need dialysis, but the condition is reversible.
Hemodialysis is the most common form of dialysis treatment for ESRD. The hemodialysis process involves passing a patient's blood through a machine that includes pumps; monitors; a dialysis filter (dialyzer); and various chemical solutions to remove toxins, fluids, and chemicals. The treatment process lasts about four hours and patients require treatment three times per week. Machines are made by several companies, including Baxter, Fresenius, and B. Braun Avitum.
Center operations involve acquiring and maintaining dialysis machines and other equipment, managing staff, scheduling appointments, providing treatments, and billing. Although larger centers would be more efficient, the size of centers is limited by the distance patients can reasonably travel to get there. A new center can be expensive: for example, DaVita's new outpatient dialysis centers can cost about $2.3 million for leasehold improvements and other capital expenditures.
In addition to dialysis treatments, centers may provide lab testing services, support for home dialysis, in-hospital dialysis services for acutely sick patients, and infusion services for drugs such as erythropoietin (EPO). Some companies also manage in-hospital centers for a fee.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
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