DaVita faces risks from macroeconomic conditions, political/governmental volatility, pandemic impacts, supply chain disruptions (including Baxter facility closures), elevated teammate turnover, increased competition, downward pressure on commercial payor rates, changes in laws/regulations, potential legal proceedings (including investigations and lawsuits), cybersecurity breaches (like the CHC outage), and difficulties integrating acquisitions. Center closures and associated costs, as well as rising labor costs and unionization efforts, are also significant concerns.
Financial Upside
Potential revenue increases from acquisitions, favorable changes in mix of patients, and increases in reimbursement rates (including Medicare updates). The company's integrated kidney care (IKC) initiatives and value-based care (VBC) arrangements, along with international expansion, represent potential growth opportunities. Increased borrowing capacity and share repurchases are also positive factors.
