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DaVita to Foray into Brazil; Global Expansion Plans on Track

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DaVita HealthCare Partners Inc.DVA announced its intention to foray into Brazil. Apart from being one of the leading names in the kidney care services space in the U.S., DaVita is also 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 expand its operations to the South American country.

Brazil has huge untapped opportunities. The country has as many as 110,000 patients on dialysis. Moreover, the number is increasing significantly with a rise in chronic kidney disease in the country. DaVita intends to capitalize on this opportunity and establish its foothold in the nation.

However, debuting in the country is not the insurer's primary motive. DaVita, in fact, has a much bigger strategy behind this decision. Along with introducing superior kidney care services in the country, DaVita aims to partner with the Brazilian government and payors going ahead to establish and expand integrated care functions. This will not only boost revenues for the company through the addition of a new country in its operating portfolio, but also make way for DaVita to occupy the majority market share in the kidney care services space in the future.

DaVita is well known for its world-class care services. The company now seeks to acquaint Brazilian physicians with a global network of experts, superior training programs and the most advanced clinical and administrative service standards.

DaVita is steadily expanding in the international markets. In the past few years, the company strengthened its position in emerging and developing markets like Columbia, Portugal, Malaysia, Taiwan, Saudi Arabia, China, India and Germany, through strategic alliances as well as acquisition of dialysis centers. These initiatives are expected to help DaVita deliver more efficient patient care.

DaVita currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the healthcare services space are AmSurg Corp. AMSG , Almost Family Inc. AFAM and Chemed Corp. CHE . While AmSurg sports a Zacks Rank #1 (Strong Buy), Almost Family and Chemed hold a Zacks Rank #2 (Buy).

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DAVITA HEALTHCR (DVA): Free Stock Analysis Report

AMSURG CORP (AMSG): Free Stock Analysis Report

CHEMED CORP (CHE): Free Stock Analysis Report

ALMOST FAMILY (AFAM): 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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