DaVita, the kidney care division of
DaVita HealthCare Partners Inc.
), has recently declared the expansion of its diagnostic
laboratory - DaVita Labs - in Florida that deals in dialysis
organizations and physician practices. This will considerably
strengthen its footprint in the city of DeLand, Florida.
DaVita Labs already boasts a strong existence in Florida,
executing more than 47 million laboratory tests annually.
Moreover, operations in the region have grown significantly over
the last two years. The laboratories of DaVita in Florida mainly
rely on renal-specific methodology and technology for enhancing
the accuracy of its tests. DaVita currently operates between two
Florida locations - Ft. Lauderdale and DeLand - spanning across
137,000 square-feet of diagnostic laboratories.
Growth in business and teammates requires new facilities.
Thus, in order to tap more growth opportunities, the company is
establishing a 65,000 square-foot facility in DeLand. The
construction of the outlet is scheduled to commence by mid-2014
and end around early-to-mid 2015.
DaVita has been upfront in reaching out to more locations to
capitalize on the opportunities and generate growth. The
expansion of the DaVita Lab is not the first extension work by
the company this year. So far in 2014, the company has inked a
number of deals that highlight the company's intentions to extend
its geographic reach. In Jan 2014, to realize its long-term
growth strategy in Europe, DaVita allied with Praxis mit Nahe -
an eminent nephrology practice in Germany.
In Feb 2014, DaVita entered into a deal with the Kingdom of
Saudi Arabia's Ministry of Health to treat around 10,000 dialysis
patients in the state. Again, DaVita ended up expanding its
chronic conditions special needs plan (C-SNP) with SCAN Health
Plan to reach out to more individuals in Los Angeles and Orange
Counties, the same month.
We believe the strengthening of operations in DeLand will open up
numerous opportunities for the company as DeLand has a total
population of 27,031 as per the 2010 Census. Thus, the expansion
initiative marks an important step for the company in recognizing
its long-term growth objectives.
DaVita currently has a Zacks Rank #4 (Sell). However, some
better-ranked stocks in the healthcare services space include
Quest Diagnostics Inc.
Envision Healthcare Holdings, Inc.
BG Medicine, Inc.
). While Envision sports a Zacks Rank #1 (Strong Buy), Quest
Diagnostics and BG Medicine carry a Zacks Rank #2 (Buy).
BG MEDICINE INC (BGMD): Free Stock Analysis
QUEST DIAGNOSTC (DGX): Free Stock Analysis
DAVITA HEALTHCR (DVA): Free Stock Analysis
ENVISION HLTHCR (EVHC): Free Stock Analysis
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