Navigating Contradictions: Key Insights from the Latest Earnings Call on Treatment Rates, Revenue, and Cyber Impact

Financial Performance and Clinical Outcomes:
- DaVita reported adjusted operating income of $551 million and adjusted earnings per share of $2.95 for Q2 2025.
- Despite a cyber incident's impact, the company met financial expectations due to strong clinical performance and cost management.

Treatment and Patient Care Costs:
- U.S. treatments per day declined by 1.1% year-over-year, with an anticipated full-year decline of 75 to 100 basis points.
- Patient care costs per treatment declined by approximately $3.50 sequentially, with an anticipated full-year increase of 5% to 6%.
- Decreased treatment volume, particularly due to increased missed treatments post-cyber incident, and improved labor productivity were key factors.

Cyber Incident Impact and Recovery:
- The cyber incident incurred $13 million in non-GAAP expenses and affected treatment volume, revenue per treatment, and billing processes.
- The company expects the impact of the cyber event on adjusted results to be largely behind them.

Policy and Regulatory Environment:
- The company acknowledged ongoing policy changes, including tariffs, Medicaid cuts, and qualified health plans, but maintained unchanged impact estimates.
- The CMS announced a 2% increase in the dialysis rate for 2026, which, while modest, remains consistent with previous trends.