Davita must sell 29 clinics before acquiring DSI: FTC
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.