Davita Inc's Customers Performance
DVA
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DVA's Source of Revenues |
In the Q4, Davita Inc 's corporate clients experienced a reduction by -2.06 % in their costs of revenue, compared to a year ago, sequentially costs of revenue grew by 12.56 %. During the corresponding time, Davita Inc recorded revenue increase by 7.85 % year on year, sequentially revenue grew by 0.78 %. While revenue at the Davita Inc 's corporate clients recorded rose by 13.43 % year on year, sequentially revenue grew by 21.86 %.
• List of DVA Customers
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Customers of Davita Inc saw their costs of revenue decrease by -2.06 % in Q4 compare to a year ago, sequentially costs of revenue grew by 12.56 %, for the same period Davita Inc recorded revenue increase by 7.85 % year on year, sequentially revenue grew by 0.78 %.
• List of DVA Customers
Select the Relationship:
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Select the Category:
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Customers Net Income fell in Q4 by |
Customers Net margin fell to % |
-11.27 % |
2.77 % |
Davita Inc's Comment on Sales, Marketing and Customers
On average, dialysis-related payment rates from commercial payors are significantly
higher than Medicare, Medicaid and other government program payment rates, and
therefore the percentage of commercial patients to total patients represents
a major driver of our total average dialysis revenue per treatment. The percentage
of commercial patients covered under contracted plans as compared to commercial
patients with out-of-network providers continued to increase and can also significantly
affect our average dialysis revenue per treatment since commercial payment rates
for patients with out-of-network providers are on average higher than in-network
payment rates that are covered under contracted plans. In 2013, the growth of
our government-based patients continued to outpace the growth of our commercial
patients, which has been a trend that we have experienced for the past several
years. We believe the growth in our government-based patients is driven primarily
by improved mortality and the current economic environment that has resulted
in a decrease in the number of individuals that are covered under commercial
insurance plans. This trend has negatively impacted our average dialysis revenue
per treatment over the last several years as a result of receiving a larger
proportion of our revenue from government-based payors, such as Medicare, that
reimburse us at lower payment rates.
HCP capitated revenues consist primarily of fees for medical services provided
under capitated contracts with various health plans or under FFS arrangements
with privately insured individuals. Capitation revenue derived from health plans
typically results from either (i) premium payments by CMS to HCP’s health
plan customers under Medicare Advantage with respect to seniors, disabled and
other eligible persons (which are referred to herein as HCP’s senior membership),
(ii) premium payments by state governments to HCP’s health plan customers
under Medicaid managed care programs (which are referred to herein as HCP’s
Medicaid membership), and (iii) premium payments from public and private employers
and individuals to HCP’s health plan customers with respect to their employees
(which are referred to herein as HCP’s commercial membership). Capitation
payments under health plan contracts are made monthly based on the number of
enrollees selecting an HCP associated group physician employed or associated
with one of HCP’s medical group entities as their primary health care
provider. The amount of monthly capitation HCP receives from health plans on
behalf of a member generally does not vary during a given calendar year, regardless
of the level of actual medical services utilized by the member. Due to differing
state laws affecting health care entities, HCP’s capitation contracts
fall into two general categories. As described in more detail below, in central
Florida, southern Nevada, New Mexico and Arizona, HCP utilizes a global capitation
model in which it assumes the financial responsibility for both professional
(physician) and institutional (or hospital) services for covered benefits. In
2013, in southern California, HCP utilized variants of a different model for
capitation under which it is directly financially responsible for covered professional
services, but indirectly financially responsible for covered institutional expenses.
See below for further discussion regarding changes to HCP’s revenue recognition
for hospital services in 2014. HCP’s associated medical groups also receive
specified incentive payments from health plans based on specified performance
and quality criteria. These amounts are accrued when earned, and the amounts
can be reasonably estimated.
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Davita Inc's Comment on Sales, Marketing and Customers
On average, dialysis-related payment rates from commercial payors are significantly
higher than Medicare, Medicaid and other government program payment rates, and
therefore the percentage of commercial patients to total patients represents
a major driver of our total average dialysis revenue per treatment. The percentage
of commercial patients covered under contracted plans as compared to commercial
patients with out-of-network providers continued to increase and can also significantly
affect our average dialysis revenue per treatment since commercial payment rates
for patients with out-of-network providers are on average higher than in-network
payment rates that are covered under contracted plans. In 2013, the growth of
our government-based patients continued to outpace the growth of our commercial
patients, which has been a trend that we have experienced for the past several
years. We believe the growth in our government-based patients is driven primarily
by improved mortality and the current economic environment that has resulted
in a decrease in the number of individuals that are covered under commercial
insurance plans. This trend has negatively impacted our average dialysis revenue
per treatment over the last several years as a result of receiving a larger
proportion of our revenue from government-based payors, such as Medicare, that
reimburse us at lower payment rates.
HCP capitated revenues consist primarily of fees for medical services provided
under capitated contracts with various health plans or under FFS arrangements
with privately insured individuals. Capitation revenue derived from health plans
typically results from either (i) premium payments by CMS to HCP’s health
plan customers under Medicare Advantage with respect to seniors, disabled and
other eligible persons (which are referred to herein as HCP’s senior membership),
(ii) premium payments by state governments to HCP’s health plan customers
under Medicaid managed care programs (which are referred to herein as HCP’s
Medicaid membership), and (iii) premium payments from public and private employers
and individuals to HCP’s health plan customers with respect to their employees
(which are referred to herein as HCP’s commercial membership). Capitation
payments under health plan contracts are made monthly based on the number of
enrollees selecting an HCP associated group physician employed or associated
with one of HCP’s medical group entities as their primary health care
provider. The amount of monthly capitation HCP receives from health plans on
behalf of a member generally does not vary during a given calendar year, regardless
of the level of actual medical services utilized by the member. Due to differing
state laws affecting health care entities, HCP’s capitation contracts
fall into two general categories. As described in more detail below, in central
Florida, southern Nevada, New Mexico and Arizona, HCP utilizes a global capitation
model in which it assumes the financial responsibility for both professional
(physician) and institutional (or hospital) services for covered benefits. In
2013, in southern California, HCP utilized variants of a different model for
capitation under which it is directly financially responsible for covered professional
services, but indirectly financially responsible for covered institutional expenses.
See below for further discussion regarding changes to HCP’s revenue recognition
for hospital services in 2014. HCP’s associated medical groups also receive
specified incentive payments from health plans based on specified performance
and quality criteria. These amounts are accrued when earned, and the amounts
can be reasonably estimated.
DVA's vs. Customers, Data
(Revenue and Income for Trailing 12 Months, in Millions of $, except Employees)
COMPANY NAME |
MARKET CAP |
REVENUES |
INCOME |
EMPLOYEES |
Davita Inc |
12,770.10 |
12,140.15 |
956.98 |
69,000 |
Aflac Incorporated |
50,596.26 |
18,701.00 |
4,659.00 |
12,447 |
Assurant Inc |
9,591.26 |
11,131.60 |
642.50 |
15,600 |
American National Group Inc |
5,108.64 |
4,299.31 |
639.89 |
4,736 |
Axis Capital Holdings Limited |
5,436.82 |
5,643.39 |
376.29 |
1,225 |
The Cigna Group |
104,714.28 |
195,265.00 |
5,372.00 |
73,700 |
Centene Corporation |
42,042.03 |
153,695.00 |
1,740.00 |
72,500 |
Cno Financial Group Inc |
3,051.87 |
4,146.80 |
276.50 |
3,500 |
Elevance Health Inc |
122,045.86 |
165,712.00 |
6,434.00 |
98,200 |
Futu Holdings Ltd |
62,442.93 |
975.97 |
375.17 |
150 |
Heartland Media Acquisition Corp |
202.86 |
0.00 |
4.01 |
0 |
Humana Inc |
43,207.80 |
106,374.00 |
2,484.00 |
96,900 |
Kemper Corporation |
3,742.18 |
4,944.20 |
-272.30 |
5,600 |
Metlife Inc |
55,314.36 |
66,905.00 |
1,602.00 |
43,000 |
Molina Healthcare Inc |
23,508.52 |
34,072.00 |
1,091.00 |
14,000 |
Principal Financial Group inc |
20,101.25 |
13,665.80 |
670.10 |
18,600 |
Security National Financial Corporation |
189.50 |
351.77 |
32.87 |
1,271 |
Tenet Healthcare Corp |
10,741.19 |
20,548.00 |
1,311.00 |
108,000 |
Trupanion Inc |
1,122.29 |
1,108.61 |
-44.69 |
439 |
Unitedhealth Group Incorporated |
456,859.43 |
371,622.00 |
23,144.00 |
350,000 |
Unum Group |
10,252.62 |
12,385.90 |
1,283.80 |
10,300 |
White Mountains Insurance Group ltd |
0.00 |
2,166.70 |
580.90 |
2,973 |
SUBTOTAL |
1,030,271.95 |
1,193,714.04 |
52,402.04 |
933,141 |
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