DaVita Spared as Medicare Wipes Out 9.4% Dialysis Cut
"DaVita HealthCare Partners Inc. (DVA), Fresenius Medical Care AG (FME) and other dialysis companies received a break from U.S. regulators, who are scrapping a proposed 9.4 percent cut in Medicare payments to the companies next year.
DaVita, the second-largest dialysis provider in the U.S., rose 13 percent in late trading after the Centers for Medicare and Medicaid Services finalized a rule today that keeps payments flat for 2014. Medicare proposed in July the 9.4 percent cut in pay for treating patients with end-stage renal disease" Bloomberg
So, DaVita mgt picks yup a welfare check from Medicare. My question is why "9.4%"---it seems specific enough there might actually be a reason for it, though I haven;t kept up with that sector in well over a decade.
To me it makes sense to cut stuff like that 5-10% a year to "encourage innovation" and "make 21st Century jobs" right past the point that enough people die that somebody starts bringing the 2nd Amendment back to those setting the tax rates.