DVA - DaVita could benefit from legislation that would return dialysis protection to Medicare
- DaVita ( NYSE: DVA ) could benefit significantly if H.R. 8594, the Restore Protections for Dialysis Patients Act, is passed, according to Barclays.
- The aim of the bill is to restrict health plans from discriminating against patients with end-stage renal disease by offering low reimbursement rates for outpatient kidney dialysis.
- In June, the U.S. Supreme Court in Marietta Memorial Hospital Employee Health Benefit Plan vs. DaVita Inc. overturned a lower court's decision that found in favor of DaVita ( DVA ).
- The bill currently has 18 bi-partisan co-sponsors.
- Analyst Sarah James said that one scenario is incremental impact on pricing pressure. She estimated that each 1% commercial pricing pressure could impact OI by 4%.
- She added this could happen in 2024 or later.
- Read why Karreta Advisors is bullish on DaVita ( DVA ).
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DaVita could benefit from legislation that would return dialysis protection to Medicare