Davita must sell 29 clin­ics be­fore ac­quir­ing DSI: FTC

Modern Healthcare - - Late News -

The Fed­eral Trade Com­mis­sion is re­quir­ing that DaVita sell off 29 out­pa­tient clin­ics be­fore clear­ing the dial­y­sis provider’s $689 mil­lion ac­qui­si­tion of com­peti­tor DSI Re­nal. The com­mis­sion voted 5-0 to ap­prove a pro­posed set­tle­ment with DaVita that would sat­isfy the fed­eral agency’s an­titrust con­cerns with the sale. DaVita, the na­tion’s No. 2 dial­y­sis firm with 1,612 clin­ics in 42 states, in­tends to ac­quire the fifth-largest com­pany, DSI, which has 106 clin­ics in 23 states, the FTC said in a state­ment (See re­lated story, p. 18). An FTC anal­y­sis found that DaVita, a pub­licly traded com­pany based in Denver, would have gained a mo­nop­oly or be­come one of only two providers in 16 mar­kets. The set­tle­ment re­quires DaVita to sell the 29 clin­ics to a firm called Dial­y­sis Newco, and to pro­vide its new com­peti­tor with ser­vices such as pay­roll, billing and col­lec­tion, un­til the com­pany can take over all op­er­a­tions on its own. The com­mis­sion will vote on whether to ap­prove the set­tle­ment after a pub­lic com­ment pe­riod that ends Oct. 5. A spokesman for DaVita was not avail­able for com­ment at dead­line.

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