Dialysis businesses spend $111M to defeat proposal

Measure would put cap on companies’ profits

SACRAMENTO, Calif. — Dialysis companies have contributed an extraordinary $111 million and counting to defeat a California ballot initiative that would cap their profits, the most any one side has spent on a U.S. ballot issue since at least 2002.

A $5 million donation from this week from dialysis provider Fresenius Medical Care pushed the anti-Proposition 8 campaign’s total past the $109 million pharmaceutical companies spent two years ago to defeat a measure limiting prescription drug costs. More than $70 million has been spent on television and radio ads as well as consulting services in the last two months.

When corporate profits are at stake, campaign spending often balloons, said Kati Phillips of California Common Cause, which advocates campaign finance reform.

“Health care measures are expensive,” she said. “There’s a lot of money to be made off of sick people.”

Dialysis companies make roughly $3 billion in annual profits from their California operations, according to nonpartisan Legislative Analyst’s Office.

For weeks, anti-Proposition 8 ads have blanketed the California airwaves and feature dialysis patients saying passage could lead to clinic closures that endanger their lives. Dialysis providers say the measure is actually a tactic to pressure the companies to let workers unionize.

“We will spend what is necessary to protect patients from this dangerous and irresponsible ballot measure,” said Kathy Fairbanks, spokeswoman for the anti-Proposition 8 campaign.

The campaign supporting the measure, led by the Service Employees International Union-United Healthcare Workers West, has raised $18 million. Supporters say passage will ensure dialysis companies put patients before profits.

An Associated Press analysis found the campaign to defeat Proposition 8 is the most expensive effort on one side of a ballot measure anywhere in the country since the 2002 election, the earliest cycle for which data is available online.

Rich Pedroncelli The Associated Press Adrian Perez undergoes dialysis at a DaVita Kidney Care clinic in Sacramento, Calif. Dialysis companies have contributed $111 million to defeat a California ballot initiative that would cap their profits.