MMGP: MMGP: Services/Pricing
BUSI 530: Discussion Board 1
Liberty University
1
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In your thread, describe the industry conditions, the financial position of the company
(relative to the industry and the company as a whole), the economic outlook of the
company, and why you as a potential investor would or would not invest in this
company. In determining your answer, please be sure to address some of the key
financial indicators that helped to determine your decision to invest or not to invest.
Please note that while you are giving your opinion, you should avoid using first person.
Introduction
Kidney failure has affected a large amount of Americans. According to the NIH (2016),
there are almost 400,000 patients in the United States receiving dialysis. Dialysis is the
treatment that helps filter the blood of those who do not have normal functioning kidneys
(Kidney.org, 2016). With over 400,000 patients requiring dialysis and the treatment costing
upwards of $70,000, the business of filtering blood is not only necessary but also very
lucrative.
DaVita Healthcare Partners (DVA)
With more and more patients in renal failure and reaching end-stage renal disease, the
need for dialysis services have never been better. DaVita Inc. is one of a few companies that
offer dialysis throughout the United States. As of 2015 they have 2,251 outpatient dialysis
centers (S&P Capital IQ, 2016). DaVita has been on an aggressive expansion and dominance
path in the dialysis arena. In 2011 they bought out one of their competitors and have been
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opening new clinics across the United Sates at a rapid pace. In 2012 they merged with
privately held HealthCare Partners. This provided new physicians to their clinic to help
further expand their business. According to DaVita, they currently have 180,000 patients.
That is almost half of all patients in the United States that require treatment. With their
expansion and dominance strategy and their large holding of all clients that require this
specialized service. DaVita appears to be a great investment opportunity. The American
population gets larger as the years go on with every new generation being larger than the last.
The consumer pool will just get larger as time goes on.
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References
National Institute of Health. Kidney Disease Statistics for the United States. (n.d.).
Retrieved July 08, 2016, From https://www.niddk.nih.gov/health-information/health-
statistics/Pages/kidney-disease-statistics-united-states.aspx
National Kidney Foundation. Dialysis. (2015). Retrieved July 08, 2016, from
https://www.kidney.org/atoz/content/dialysisinfo
S & P Capital IQ. (2016). Overview. Retrieved July 08, 2016 from
http://www.netadvantage.standardandpoors.com.ezproxy.liberty.edu:2048/NASApp/NetAdvanta
ge/cp/companyOverView.do?
SPPW_ID=9299&pc=NET&auth=071106115130146180074055208032145253096003246093&
tracking=NET
