DaVita's Q4 2024 Earnings Call: Conflicting Signals on Patient Volume, Treatment Costs, and Growth Expectations

These are the key contradictions discussed in DaVita's latest 2024Q4 earnings call, specifically including: Patient Volume Outlook, Treatment Cost Growth, and Volume Growth Expectations:



Strong Financial Performance in 2024:
- DaVita Inc. reported full-year 2024 adjusted operating income and adjusted EPS with year-over-year growth of 21% and 26%, respectively.
- This growth was driven by improved operational efficiency and strategic focus on enhancing quality of care and expanding international presence.

Impact of Supply Chain Disruptions and Hurricane Helene:
- The company faced a $6 million impact on adjusted operating income in Q4 2024 due to Hurricane Helene and Baxter's North Cove facility closure.
- This disruption affected new home patient admissions and contributed to a $30 million negative impact on adjusted operating income for 2025.

Orals in the Bundle and Revenue Growth:
- DaVita expects $0 million to $50 million contribution from orals in the bundle to adjusted operating income in 2025.
- The inclusion of orals in the bundle, particularly phosphate binders, is anticipated to significantly impact revenue per treatment.

2025 Guidance and Volume Trends:
- Adjusted operating income guidance for 2025 is $2.01 billion to $2.16 billion, with a midpoint growth of 5.2%.
- Guidance assumes flat treatment volume growth in 2025, reflecting challenges from leap year and PD supply impacts from Hurricane Helene.

International Expansion and Integrated Kidney Care:
- DaVita expanded its international presence, closing on three of four Latin American acquisitions in 2024.
- Continued progress in integrated kidney care, with expectations to achieve sustainable integrated care delivery and pursue scale opportunities.