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DaVita's (DVA) Deal to Aid Patients in Kidney Transplantation

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DaVita Kidney Care, an operating division of DaVita Inc. DVA, recently inked a deal with the National Kidney Foundation (NKF) to introduce an innovative, one-year long pilot program with an aim to improve health equity in kidney transplantation. Notably, the new program has been developed within NKF’s THE BIG ASK: THE BIG GIVE platform.

This collaboration is likely to provide a boost to DaVita Kidney Care, which in turn can help in generating more revenues for the company.

THE BIG ASK: THE BIG GIVE Platform at a Glance

NKF’s platform helps kidney patients and their families to share the requirement for a kidney with their community and find a living donor. The new pilot program provides extensive support and tools in a virtual format, thereby allowing NKF to offer high-touch, in-depth education and support to patients and families looking for a kidney transplant from a living donor.

After careful selection by both DaVita and NKF, the decision has been made for the pilot program to take place in Colorado, New York, Minnesota and New Mexico. The selected states have an unique opportunity to boost health equity in kidney transplantation.

Benefits of the Collaboration

To shed some light on kidney disease, more than 500,000 people in the United States are presently living with kidney failure. Without dialysis, these patients only have one option survive and that is a transplant. There are around 100,000 patients waiting to receive a kidney (average wait time of three to seven years for a deceased donor on the basis of location) and therefore many of these patients can benefit from living organ donation.

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By bringing together DaVita’s experience in care delivery and NKF’s innovative program, patients will be able to get the necessary support and information in their search for living donors.

Market Prospects

Per a report by Grand View Research, the global transplantation market was worth $8.4 billion in 2020 and is anticipated to witness a CAGR of 11.5% during the forecast period (2021-2028). Increase in demand for novel tissue transplantation products and organ transplantation for the treatment of organ failure is a major factor driving the growth of this market. Hence, the collaboration comes at an opportune time for DaVita.

Other Notable Collaborations

In April, DaVita's integrated kidney care subsidiary VillageHealth, in partnership with Blue Cross and Blue Shield of Minnesota (Blue Cross), introduced an innovative program that caters to the holistic health needs of certain eligible members afflicted with chronic kidney disease (CKD) or end-stage kidney disease (ESKD).

In March, the company announced the extension of its collaboration with Fresenius Medical Care’s FMS North America wing to use the latter’s NxStage home hemodialysis machines and related technology for patients across the United States. Notably, the agreement supports the companies’ efforts to empower more people living with kidney failure to select home dialysis as an option.

Price Performance

Shares of this Zacks Rank #2 (Buy) company have gained 4.2% on a year-to-date basis, against the industry’s decline of 11.3%.

Other Stocks to Consider

Some other top-ranked stocks from the broader medical space are HCA Healthcare, Inc. HCA, and Encompass Health Corporation EHC, both carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

HCA Healthcare’s long-term earnings growth rate is expected at 12.3%.

Encompass Health’s long-term earnings growth rate is projected at 17.3%.

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DaVita Inc. (DVA) : Free Stock Analysis Report

Fresenius Medical Care AG & Co. KGaA (FMS) : Free Stock Analysis Report

HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report

Encompass Health Corporation (EHC) : Free Stock Analysis Report

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