Davita Dialysis
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DaVita and its former CEO Kent Thiry were acquitted in 2022 of criminal charges related to alleged "no-poach" agreements with competitors, which the DOJ claimed violated antitrust laws. The FTC has also imposed limits on DaVita's mergers in Utah due to concerns about its history of acquiring competitors.
WikipediaOverview of DaVita and Kent Thiry
DaVita Inc. is a prominent provider of kidney dialysis services, operating numerous outpatient centers across the United States and internationally. The company has faced legal scrutiny regarding its business practices, particularly concerning antitrust issues.
Kent Thiry's Role
- Position: Former CEO of DaVita
- Tenure: Led the company from 1999 until his retirement in 2020
- Contributions: Under his leadership, DaVita expanded significantly, becoming a Fortune 400 company.
Legal Issues and Antitrust Concerns
Acquittal in Antitrust Case
In 2022, DaVita and Kent Thiry were acquitted of criminal charges related to alleged "no-poach" agreements with competitors. The Department of Justice (DOJ) claimed these agreements violated antitrust laws, specifically the Sherman Antitrust Act. The jury found both defendants not guilty, marking a significant legal victory for them.
FTC Merger Limitations
The Federal Trade Commission (FTC) has imposed restrictions on DaVita's ability to engage in further mergers, particularly in Utah. This action stems from concerns about DaVita's history of acquiring competitors, which could potentially reduce competition in the healthcare market.
DaVita continues to operate as a major player in the dialysis market while navigating regulatory challenges and maintaining its commitment to providing healthcare services.
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DaVita Inc. is an American company that provides kidney dialysis services through a network of 2,675 outpatient centers in the United States, serving 200,800 patients, and 367 outpatient centers in 11 other countries serving 49,400 patients. The company primarily treats end-stage renal disease (ESRD), which requires patients to undergo kidney dialysis, often 3 times per week for the rest of their lives unless they receive a kidney transplant via organ donation. The company has a 37% market share in the U.S. dialysis market.[citation ^needed] It is incorporated in Delaware and headquartered in Denver.[2]
In 2023, 67% of the company's revenues came from Medicare and other government-based health insurance programs. In 2023, 89% of the company's patients were covered by government-based health insurance programs. Commercial payers, which accounted for 33% of revenues in 2023, generate nearly all of the company's profit as they reimburse at a much higher rate than government-based health insurance programs.[2]
The company is ranked 341st on the Fortune 500.[3]
History
The company was founded in 1979 as Medical Ambulatory Care, Inc., a subsidiary of National Medical Enterprises, Inc. (now Tenet Healthcare).[4]
In August 1994, 70% of the company was acquired by DLJ Merchant Banking Partners in a leveraged buyout for $75.5 million,[5] including a $10.5 million investment by DLJ.[6] The company then changed its name to Total Renal Care Holdings, Inc.
In October 1995, the company became a public company via an initial public offering, raising $107 million.[4] By December 1996, DLJ had made a 386% return on its $10.5 million investment.[6]
Acquisitions and divestments
On February 27, 1998, the company acquired Renal Treatment Centers for $1.3 billion in stock.[4][7] The integration went poorly and in July 1999, the CEO and CFO resigned. After tripling in value between 1995 and 1998, by July 1999, the stock price was down 71% year-to-date.[8][9] In October 1999, Kent J. Thiry, then 43 years old, was named CEO.[10]
In 2000, the company sold its non-U.S. operations.[11] In October 2000, the company was renamed DaVita Inc.[12] The name "DaVita" was derived from the Italian language phrase "Dare Vita", which means "to give life".[13]
In October 2005, the company acquired Gambro Healthcare.[14]
In 2012, DaVita acquired Healthcare Partners for $4.42 billion.[15] In September 2016, Healthcare Partners was renamed DaVita Medical Group.[citation ^needed] In June 2019, the division was sold to UnitedHealth Group's Optum division for $4.3 billion.[16]
In 2014, DaVita acquired Colorado Springs Health Partners, with 600 employees and 110,000 patients.[17]
In March 2016, it acquired the Everett Clinic Medical Group, a 20-site physicians practice with 315,000 patients in the Seattle area, for $385 million.[18]
In May 2017, it acquired WellHealth Quality Care.[19]
Legal issues
In October 2014, the company agreed to pay $350 million to settle claims that it provided illegal kickbacks to doctors.[20]
In June 2015, the company agreed to pay $450 million to settle allegations that it unnecessarily disposed of drugs and then billed the U.S. federal government for this waste.[21]
In June 2018, a jury awarded the families of 3 of the company's patients $383 million in wrongful death claims after the patients died from cardiac arrest after undergoing treatment at DaVita centers.[22]
In October 2018, it agreed to pay $270 million to settle allegations that it violated the False Claims Act by providing inaccurate information that caused Medicare Advantage Plans to receive inflated payments. James Swoben, a whistleblower, received $10 million.[23]
In July 2021, a federal grand jury indicted DaVita and former CEO Kent Thiry on charges of labor market collusion alleging participation in conspiracies with Surgical Care Affiliates to suppress competition for the services of certain senior-level employees. The company and Thiry were acquitted by a jury in April 2022.[24][25] In October 2021, the Federal Trade Commission imposed limits on the company engaging in more mergers in Utah because of its history of buying up competitors.[26]
In 2024, the Federal Trade Commission began investigating Davita along with Fresenius Medical Care under allegations they use illegal tactics to push smaller companies out of the market.[27]
In May 2025, the benefits fund of the United Food and Commercial Workers Local 1776 filed a proposed class-action lawsuit against DaVita and Fresenius Medical Care, a rival dialysis provider, alleging that the two companies illegally conspired to inflate treatment costs for dialysis patients by billions of dollars.[28]
References
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American Kidney Fund Steered Financial Aid To Patients Of Its Two Biggest Corporate Donors, Lawsuit Claims
The American Kidney Fund is supposed to help patients pay for health insurance premiums and other costs for treatment based solely on a patient’s financial need, and not favor companies that donate to it. But a new whistleblower lawsuit claims the charity created a so-called blocked list of dialysis clinics whose patients would not get financial assistance while it made sure patients at clinics operated by DaVita and Fresenius would.
The New York Times: Top Kidney Charity Directed Aid To Patients At DaVita And Fresenius Clinics, Lawsuit ClaimsOne of the nation’s largest public charities steered financial aid to patients of its two biggest corporate donors — the dialysis chains DaVita and Fresenius — while denying help to people who used smaller, unrelated clinics, in violation of anti-kickback laws, according to a federal whistle-blower lawsuit unsealed this week in Boston. The charity, the American Kidney Fund, helps patients who need dialysis by paying their health insurance premiums and other costs for treatment. But under a longstanding federal agreement intended to prevent illegal kickbacks, the charity is supposed to provide help based solely on a patient’s financial need, and not favor companies that donate to it. (Abelson and Thomas, 8/2)
Modern Healthcare: Whistleblower Alleges DaVita, Fresenius Involved In Kickback SchemeAccording to the whistleblower complaint, which was first unsealed on Thursday after the U.S. Justice Department declined to intervene, most of the American Kidney Fund's money goes toward helping patients pay for dialysis treatment through grants. DaVita and Fresenius are among the organization's biggest donors. When the American Kidney Fund became pressed for donations, it began restricting grants to only patients whose dialysis providers contributed to the fund, according to the lawsuit, which was initially brought in 2016 by a former AKF employee of 12 years. DaVita and Fresenius pressured the AKF to do so, according to the complaint, which was first reported by Bloomberg Law. (Livingston, 8/2)
Bloomberg: DaVita, Fresenius Broke Kickback Rules, Whistleblower Says“The Department of Justice has looked at this matter and decided not to pursue any action against DaVita,” company spokeswoman Courtney Culpepper said in an email. “Unfortunately, some health insurers seeking to avoid high-cost patients may continue to try to challenge charitable premium assistance. We, in turn, will continue to defend our patients’ right to access such assistance.” (Tozzi, 8/2)
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Davita Charitable Fund Inc Foundation Profile | 96 Grants | Grant Bay
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Davita Charitable Fund Inc
Davita Charitable Fund Inc | Foundation Profile
Federal Way , WA Key People Contact Info
GrantBay analyzes IRS Form 990-PF data to help grant seekers find fit funders like Davita Charitable Fund Inc. Data shown is extracted from Form 990-PF filings.
EIN: 85-2950661
Foundation Overview
Based in Federal Way, WA, Davita Charitable Fund Inc has awarded 96 grants totaling $14,086,262 to organizations in Delaware, New York and 8 other states across the US. Individual grants range from $3,165 to $806,400, with a median award of $25,000.
Latest Tax Year
2024
Total Giving (all years)
$14,086,262
Total Assets
$35,635,818
Median Grant (all grants)
$25,000
Latest Form 990-PF Snapshot
Total Grants
64
Median Grant
$25,000
% Median Grant Growth
+150% (vs previous year)
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DaVita Inc. and Former CEO Indicted in Ongoing Investigation of Labor Market Collusion in Health Care Industry
Thursday, July 15, 2021
For Immediate Release
Office of Public Affairs
Note:The defendants in this case, DaVita Inc. and Kent Thiry, wereacquitted by a jury of the charges alleged in the indictment described in the press release below.
A federal grand jury in Denver returned a two-count indictment charging DaVita Inc. and its former CEO, Kent Thiry, for conspiring with competing employers not to solicit certain employees. DaVita owns and operates outpatient medical care centers across the country, focusing on dialysis and kidney care. These charges are the result of the Antitrust Division’s ongoing investigation into employee allocation agreements in the health care industry. DaVita’s co-conspirator Surgical Care Affiliates LLC and its related entity (collectively SCA) were charged in January, and that case is pending in the Northern District of Texas.
The indictment alleges that DaVita and Thiry both participated in two separate conspiracies to suppress competition for the services of certain employees. Count One charges DaVita and Thiry for conspiring with SCA to allocate senior-level employees by agreeing not to solicit each other’s senior-level employees from as early as February 2012 until as late as July 2017. Count Two charges DaVita and Thiry for conspiring with another health care company from as early as April 2017 until as late as June 2019 to allocate employees by agreeing that the other health care company would not solicit DaVita’s employees.
“Those who conspire to deprive workers of free-market opportunities and mobility are committing serious crimes that we will prosecute to the full extent of the law,” said Acting Assistant Attorney General Richard A. Powers of the Justice Department’s Antitrust Division. “We are grateful for our partnership with the FBI and our shared commitment to rooting out illegal collusion targeting labor markets.”
“These charges show a disturbing pattern of behavior among health care company executives to conspire to limit the opportunities of workers,” said Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office. “The FBI is dedicated to working with our partners to hold those accountable who would engage in labor market collusion to the detriment of their employees.”
DaVita and Thiry are charged with two counts of violating the Sherman Act. The defendants are scheduled for their initial court appearance on July 20 before U.S. Magistrate Judge Kristen L. Mix of the U.S. District Court for the District of Colorado. If convicted, DaVita faces a maximum penalty of a $100 million fine per count, and Thiry faces a maximum penalty of 10 years in prison and a $1 million fine per count. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than the statutory maximum. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Today’s announcement is the result of an ongoing federal investigation being conducted by the Antitrust Division’s Washington Criminal II Section and the Washington Field Office of the FBI.
Anyone with information in connection with this investigation should contact the Antitrust Division’s Complaint Center at 888-647-3258, or visit http://www.justice.gov/atr/report-violations.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.