“We believe we have found an executive with a versatile set of skills, from advanced finance to demonstrated strategic capabilities,” DaVita CEO and Co-Chairman Kent Thiry said in a release. “Given the nimbleness that is required for all healthcare providers, we are excited to have Garry join our leadership team.”
Berkshire Hathaway bought up more DaVita stock last week—increasing its holdings to about 15%, or 15.6 million shares—after the stock slumped in response to CMS' proposed 9.4% rate reduction for dialysis providers. Though the Medicare rate will not be set until October, a rate cut will impact the bottom line of DaVita, which serves approximately 156,000 patients in nearly 2,000 outpatient dialysis clinics. Medicare reimbursement accounted for nearly 60% of the company's 2012 revenue from its dialysis and related services.
Last year, DaVita paid about $4.7 billion in cash and stock to diversify its business with the acquisition of HealthCare Partners, a company that operates medical groups and physician networks.
Follow Rachel Landen on Twitter: @MHrlanden
