The following is a summary of the DaVita Inc. (DVA) Q1 2024 Earnings Call Transcript:
Financial Performance:
DaVita reported Q1 2024 adjusted operating income of $463 million and adjusted earnings per share of $2.38.
The company raised their adjusted operating income guidance to a range of $1.875 billion to $1.975 billion owing to improved operational performance and strategic acquisitions.
Though initially impacted by a Change Healthcare outage, DaVita has recovered and resumed regular billing and cash collection activities.
The company predicts wage inflation around 5% for the year and reported strong cost management with their OI growth being above the long-term indication of 3-7%.
Business Progress:
DaVita continues to emphasize on improving access to kidney transplants for its patients, and is investing in transplant resources and technology to achieve this goal.
The company expanded internationally, pumping $300 million into enhancing its operations in Brazil and Colombia and establishing businesses in Chile and Ecuador.
Once recent acquisitions are finalized, DaVita will become the largest dialysis provider in Latin America.
The company has registered strong clinical outcomes globally, leading to an 11% reduction in hospitalization rates since 2021.
DaVita is working on improving center utilization and plans to close around 30 centers in the net build this year.
More details: DaVita IR
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