Q3 2024 DaVita Inc Earnings Call Transcript
Key Points
- DaVita Inc (DVA) successfully managed operational challenges during recent hurricanes, ensuring minimal disruption to patient care.
- The company reported adjusted operating income of $535 million and adjusted earnings per share of $2.59 for the third quarter, in line with expectations.
- DaVita Inc (DVA) continues to demonstrate resilience by mitigating volume headwinds with margin expansion and strong cash flow.
- The company is on track to meet its 2024 adjusted operating income guidance of $1.91 billion to $2.01 billion, despite supply chain disruptions.
- DaVita Inc (DVA) is prepared for the inclusion of oral-only drugs into the Medicare bundle, which is expected to improve patient access to important therapies.
- Hurricane-related supply chain disruptions are expected to impact fourth-quarter financial results by approximately $10 million to $20 million.
- Elevated mortality rates continue to challenge treatment volume growth, with expectations of this trend persisting into 2025.
- Interest expenses have increased due to the expiration of previous interest rate caps, impacting earnings per share.
- The company faces ongoing labor cost pressures and higher medical benefits expenses, contributing to increased patient care costs.
- Uncertainty remains regarding the financial impact of the inclusion of phosphate binders in the Medicare bundle, with potential variability in reimbursement and pricing.
Good evening. My name is Michelle, and I will be your conference facilitator today. (Operator Instructions) At this time, we would like to welcome everyone to the DaVita third-quarter 2024 earnings call. (Operator Instructions) Thank you, Mr. Eliason, you may begin your conference.
Thank you, and welcome to our third quarter conference call. We appreciate your continued interest in our company. I'm Nic Eliason, Group Vice President of Investor Relations. And joining me today are Javier Rodriguez, our CEO; and Joel Ackerman, our CFO. Please note that during this call, we may make forward-looking statements within the meaning of the federal securities laws.
All of these statements are subject to known and unknown risks and uncertainties that could cause the actual results to differ materially from those described in the forward-looking statements. For further details concerning these risks and uncertainties, please refer to our third quarter earnings press release and our SEC filings, including our most recent
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