After meeting expectations in most financial areas in 2016, DaVita Inc. executives warned Thursday that revenues are likely to be down in 2017 because of headwinds that will cost the Denver-based kidney-care company patients and force it to reduce some of its rates.
Executives of DaVita (NYSE: DVA) reported adjusted operating income of $1.715 billion in their kidney-care division for 2016 and $135 million in their DaVita Medical Group managed-care division.
Those totals were in the middle of the company's previous guidance range for kidney care and on the higher end of the range for the previously struggling medical group. Chairman and CEO Kent Thiry particularly lauded the medical group as “remarkably resilient,” saying that operations have improved quarterly this year.
But Javier Rodriguez, CEO for DaVita’s kidney-care division, offered guidance of just $1.525 billion to $1.625 billion in operating income for 2017, listing several reasons for the revenue decline.
Read more at the Denver Business Journal: http://bit.ly/2lr3rm6