DaVita Healthcare Partners, Inc.'s DVA business division DaVita Kidney Care will form a joint venture chain of kidney care hospital in the Shandong province of China. The decision shows the leading global kidney care services provider’s attempt to expand its healthcare business in China.
Per the deal, DaVita will establish DaVita (Shandong) Kidney Disease Hospital Co., Ltd., a joint venture with the Chinese private sector. With unique concepts and advanced technologies, DaVita is well equipped to enhance the quality of healthcare services in the Shandong region. Also, Xiaoyi Zhang, the president of Shunjing Renal Hospital will join Davita with his decade long experience.
As per recent reports, about 120 million in Chinese population is suffering from chronic kidney disease with only about 14 million aware of the same. The joint venture can hence cater to these patients and provide them with better healthcare services. DaVita Kidney Care has two outpatient dialysis centers in China catering to 90 patients there.
Acquiring dialysis centers and businesses that own and operate dialysis centers as well as other ancillary services is DaVita’s preferred business strategy. The latest move, therefore, complements this strategy of the company. Also, these initiatives have been boosting the company’s top line to a large extent.
Recently, DaVita inked a deal to acquire Colorado-based Renal Ventures Limited, LLC for $415 million. Additionally, DaVita has been steadily expanding in the international markets over the past few years. The company has already made a place for itself in the emerging and developing markets like Columbia, Portugal, Malaysia, Taiwan, Saudi Arabia, China, India and Germany, through strategic alliances as well as acquisition of dialysis centers. These are expected to help DaVita deliver better patient care. Currently, DaVita is seeking acquisition and partnership opportunities across major European and Asian countries.
Zacks Rank
DaVita presently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the Specialized Health Services industry are Amdisys Inc. AMED, AmSurg Corp. AMSG and Foundation Healthcare, Inc. FDNH. All these stocks sport a Zacks Rank #1 (Strong Buy).
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