Two of the nation's largest for-profit kidney dialysis chains reported strong first-quarter earnings last week.
REN Corp., the nation's fourth-largest outpatient dialysis chain, said its net income for the first quarter ended March 31 more than doubled to $2.9 million, or 15 cents per share, compared with $1.2 million, or 7 cents per share, during the year-ago period. Revenues rose 27% to $39 million. The company operates 64 dialysis centers in 17 states.
Nashville, Tenn.-based REN attributed the earnings to same-center growth as well as an increase in operating income for dialysis services. The company has developed five new dialysis clinics so far this year.
"Our long-term goal is to continue to improve operating margins, further increase capacity utilization at our existing centers and employ our financial strength to boost revenue growth," said Lawrence Centella, REN's president and chief executive officer.
Meanwhile, Renal Treatment Centers, a Berwyn, Pa.-based dialysis chain, reported a 49% increase in its net income to $1.8 million, or 18 cents per share, compared with $1.2 million, or 15 cents per share, during the year-ago period. Revenues climbed 77% to $34 million.
During the first quarter, Renal Treatment Centers purchased Healthcare Corp., a privately held Nashville-based dialysis chain, for an undisclosed amount. Merger costs of combining the two companies came to $1.6 million, which was recorded during the first quarter.
Renal Treatment Centers operates 65 outpatient dialysis facilities nationwide.