DaVita Inc. balanced another disappointing quarter from its managed-care business with another solid quarter from its core kidney-care operations, though the issues with its physician holdings are growing to the point where CEO Kent Thiry suggested the company could be looking to divest itself of some of them.
The Denver-based company (NYSE: DVA) reported adjusted net income of 97 cents per share Tuesday, further adjusted to exclude amortization for the quarter. While that landed right in the middle of analysts’ forecasts for the company, it was down 10.2 percent from third-quarter earnings in 2016.
DaVita’s kidney-care business was impacted by hurricanes Harvey and Irma during the quarter, a pair of storms that Javier Rodriguez, CEO of kidney-care operations, estimated cost the company some $14 million in income and contributed to adjusted net income falling from $223 million in third quarter 2016 to $197 million this year. Still, its $404 million in operating income for the division represented a 1 percent growth from the second quarter of this year.
The more bothersome numbers for company officials once again came from its DaVita Medical Group (DMG) operations, which encompass managed-care practices in six states, including Colorado. That division reported an operating loss of $5 million.
Read more at the Denver Business Journal: http://bit.ly/2zt1dHi