Q2 2024 DaVita Inc Earnings Call Transcript
Key Points
- DaVita Inc (DVA) reported adjusted operating income of $506 million and adjusted earnings per share of $2.59, exceeding expectations.
- The company has implemented successful programs to address the nursing shortage, including collaborations with nursing universities, clinical internships, and a nurse residency program.
- Revenue per treatment (RPT) growth is expected to be between 3.55% to 4% for 2024, driven by improvements in collection capabilities and health plan negotiations.
- DaVita Inc (DVA) raised its 2024 adjusted operating income guidance to a range of $1.91 billion to $2.01 billion, reflecting sustained momentum in key operating metrics.
- The company has made targeted investments in technology and automation to improve overall collection rates and reduce days sales outstanding.
- Volume growth was lower than expected due to elevated missed treatments related to spring storms and lower than expected census gains.
- The company faced approximately $15 million in center closure costs in prior periods, which impacted adjusted operating income.
- Mortality rates were higher than forecasted, negatively impacting volume growth expectations for the second half of the year.
- The CMS proposed rule for 2025, with a rate increase of approximately 2.1%, falls short of reflecting the true cost inflation in the industry.
- DaVita Inc (DVA) expects treatment volume growth to be between 0.5% and 1% for the full year, which is below initial expectations.
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I'd like to welcome on to the diabetes Second Quarter 2024 earnings call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer period. If you would like to ask a question during this time, simply press star and then the number one on your telephone keypad. If you would like to withdraw your question, press star and then the number two. Thank you. Mr. Eliassen, you may begin your call. Difference.
Thank you and welcome to our second quarter conference call. We appreciate your continued interest in our company. I'm Nicholas and Group Vice President of Investor Relations. And joining me today are heavier 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
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