DVA - DaVita falls as management weighs impact of Supreme Court ruling
A day after leading the S&P 500, the shares of dialysis provider DaVita (NYSE:DVA) dropped on Thursday following a conference call to discuss this week's U.S. Supreme Court ruling regarding the Medicare Secondary Payor Act (MSPA). DaVita (DVA) shares reached a 52-week low on Wednesday after the court ruled that a health plan’s low reimbursement rate for dialysis did not violate MSPA. The company had argued that employer benefits plan run by Marietta Memorial Hospital, had violated the law steering patients to the government insurance, which has lower reimbursement rates. During the conference call today, DaVita (DVA) Chief Executive Javier Rodriguez said that the company is not able to predict if payers will redesign their plans to limit outpatient dialysis benefits to members in the wake of the Supreme Court ruling. However, Mr. Rodriguez estimated nearly $20M impact to operating income for every shift of 10% in small, self-insured plans,
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DaVita falls as management weighs impact of Supreme Court ruling