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A comparison of payments to a for-profit dialysis firm from government and commercial insurers

JAMA Aug 09, 2019

Childers CP, et al. - As 2 for-profit organizations control the national dialysis market, one of which—DaVita—operates 37% of the market and generates its revenues almost exclusively from dialysis and itemizes revenues by payer, researchers analyzed the financial records of this company in order to assess differences in payments from government and commercial insurers to dialysis clinics. As of December 2017, 2,510 clinics were owned and operated by the company throughout the United States. In 2017, the company was paid 4 times the rate of their government peers by the commercial insurers. For engaging in practices aimed to diminish costs or increase revenue, such as using shorter treatments, less use of home dialysis, and encouraging fewer transplantations, which may lead to patient harm, for-profit dialysis clinics have been criticized compared with their nonprofit analogs. For-profit companies increase revenue via this additional mechanism demonstrated in this work. Increased competition or fixing charges at a percent of Medicare reimbursement may perhaps reducing payments from commercial insurers and may aid alleviation of excess spending on dialysis.
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