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DaVita (DVA) Introduces Medicare-Specific ACO in Arizona

DaVita HealthCare Partners, Inc.DVA recently launched an End Stage Renal Disease (ESRD) Seamless Care Organization (ESCO) in Phoenix and Tucson. Toward this end, DaVita has partnered with Southwest Kidney Institute and Banner Health, one of the leading health care systems and pioneer accountable care organizations (ACO).

This is the first Medicare disease-specific ACO in Arizona. DaVita expects its collaboration with eminent nephrologists and a premier health system to support an enhanced delivery of integrated kidney care. This should make way for better patient outcomes going ahead.

Such value-based arrangements should drive high-quality, cost-effective population health and enhance patient experience. DaVita is a veteran in the field of treating patients with ESRD and other chronic diseases. The amalgamation of Southwest Kidney Institute and Banner Health with DaVita is thus likely to create a capacity that totally complements the services of the latter and hence, makes way for more revenue generation.

DaVita has also been working hard to enhance its operations and expand globally. Last month, the company announced its intention to foray into Brazil. Apart from being one of the leaders in the kidney care services space in the U.S., DaVita is a global player with operations in 11 countries. The insurer serves more than 1.5 million patients worldwide. The company now plans to utilize its expertise and clinical outcomes to extend its operations to the South American country.

Moreover, DaVita entered into an agreement to acquire the nationally recognized physician group - The Everett Clinic - in the same month. The deal is pending shareholders' approval and a final agreement.

DaVita currently holds a Zacks Rank #2 (Buy). Other stocks from the healthcare services space that warrant a look are LHC Group, Inc. LHCG , Chemed Corp. CHE and Quest Diagnostics Inc. DGX . While LHC Group sports a Zacks Rank #1 (Strong Buy), Chemed and Quest Diagnostics hold the same Zacks Rank as DaVita.

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QUEST DIAGNOSTC (DGX): Free Stock Analysis Report

DAVITA HEALTHCR (DVA): Free Stock Analysis Report

LHC GROUP LLC (LHCG): Free Stock Analysis Report

CHEMED CORP (CHE): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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