On Jun 23, we issued an updated research report on Denver, CO-based DaVita HealthCare Partners Inc. DVA, a leading provider of dialysis services in the U.S. to patients suffering from chronic kidney failure, which is also known as end stage renal disease (ESRD).

Acquiring dialysis centers and businesses that own and operate similar centers and other ancillary services has been DaVita’s preferred business strategy for long. This strategy has boosted the company’s top line to a large extent.

Of the major acquisitions in the recent past, The Everett Clinic, a medical group within the DaVita Medical Group division, acquired Totem Lake Family Medicine which is a renowned medical group last month.

Further, DaVita announced that HealthCare Partners has entered into a strategic partnership with Cigna, a global health insurance service company. Per the agreement, the duo will offer HMO health plans (Health Maintenance Organization) and integrated health care options to employers in and around Los Angeles.

Steady expansion in the overseas markets through strategic alliances and acquisition of dialysis centers has played a key role in boosting growth for DaVita. In the past few years, the company has strengthened its position in the emerging and developing markets of Columbia, Portugal, Malaysia, Taiwan, Saudi Arabia, China, India and Germany. This is expected to help DaVita deliver more efficient patient care.

However, the company expects a hike in its dialysis and related lab services general and administrative expenses in the upcoming quarters. DaVita’s plan to undertake initiatives to improve its information technology infrastructure is likely to result in higher costs. Investments to support regulatory compliance and legal matters as well as efforts to tap into new business opportunities will drive expenses like other Zacks categorized Medical - Outpatient and Home Healthcare players like LHC Group, Inc. LHCG, Addus Homecare Corporation ADUS, and PharMerica Corporation PMC.

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