Kidney Dialysis Centers

Kidney Dialysis Centers

Brief Excerpt from Industry Overview Chapter:

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).

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.

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 sources include patient care and care to diseases of the genitourinary systems, both accounted for more than 45% each. Other service revenues include rental and leasing of office and professional space, treatment of endocrine, nutritional and metabolic diseases, diseases of the...