Author Topic: DVA DaVita HealthCare Partners  (Read 216014 times)

rb

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Re: DVA DaVita HealthCare Partners
« Reply #70 on: October 30, 2016, 06:31:04 PM »
So how does divination become more profitable over time if market share is purposefully kept steady? More patients? Raise prices on commercial only patients?
Oh it's pretty clear that patients will go up. It's pretty clear that 5% of people with diabetes need dialysis. So the chain is get fat->get diabetes->become a DVA customer. Americans are really good at getting fat and getting diabetes. Not only that, but they're getting fat and getting diabetes earlier in life. So the mix will probably shift to more private, less medicare which is good for DVA in its current form.

The risks here are that the insurance co's negotiate down DVA's prices, or political/legislation risks such as an expansion of California prop 61. Of course this is not imminent, but my investment horizon is longer than 6-12 months. My problem with US health care stocks is the same as with any bubble. Healthcare costs in the US are out of control. And just like anything else that cannot go on forever, it will eventually stop. What happens then?


DooDiligence

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Re: DVA DaVita HealthCare Partners
« Reply #71 on: October 30, 2016, 09:10:11 PM »
So how does divination become more profitable over time if market share is purposefully kept steady? More patients? Raise prices on commercial only patients?

For that we'd need to hear from the divine master WEB (and/or his foil "the West Coast Philosopher")
BRK.B - 24.9% // Healthcare 22.5% - EW NVO // Auto's & Oil 18.4% - CLB GPC PSX VDE

Banking 9.4% - WFC // Entertainment 4.7% - DIS // Drinkers & Smokers 6.4% - MO

Retail 9.0% - ULTA VLGEA

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i trumpet my ignorance

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DooDiligence

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Re: DVA DaVita HealthCare Partners
« Reply #72 on: October 30, 2016, 09:10:48 PM »
So how does divination become more profitable over time if market share is purposefully kept steady? More patients? Raise prices on commercial only patients?
Oh it's pretty clear that patients will go up. It's pretty clear that 5% of people with diabetes need dialysis. So the chain is get fat->get diabetes->become a DVA customer. Americans are really good at getting fat and getting diabetes. Not only that, but they're getting fat and getting diabetes earlier in life. So the mix will probably shift to more private, less medicare which is good for DVA in its current form.

The risks here are that the insurance co's negotiate down DVA's prices, or political/legislation risks such as an expansion of California prop 61. Of course this is not imminent, but my investment horizon is longer than 6-12 months. My problem with US health care stocks is the same as with any bubble. Healthcare costs in the US are out of control. And just like anything else that cannot go on forever, it will eventually stop. What happens then?

My preferred bet being NVO
BRK.B - 24.9% // Healthcare 22.5% - EW NVO // Auto's & Oil 18.4% - CLB GPC PSX VDE

Banking 9.4% - WFC // Entertainment 4.7% - DIS // Drinkers & Smokers 6.4% - MO

Retail 9.0% - ULTA VLGEA

---

%'s held @ MV 2/25/20 fully invested
18 months of $

i trumpet my ignorance

https://twitter.com/tunawis

KCLarkin

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Re: DVA DaVita HealthCare Partners
« Reply #73 on: October 31, 2016, 06:51:16 AM »
Quote
Because Medicaid reimburses for dialysis at a lower rate than ACA Plans, DaVita estimates that a policy change that prevents patients with minimum essential Medicaid coverage from accessing charitable premium assistance to enroll in ACA Plans would result in a reduction in its annualized operating income of up to approximately $140 million before any offsets.  If CMS were to issue a broader ruling that made access to charitable premium assistance unavailable to all ESRD patients on ACA Plans, the estimated financial impact would increase by up to $90 million, based on our estimate that a significant number of ESRD patients would lose their ACA coverage and end up completely uninsured, while others could continue the coverage with federal subsidies.
DaVita looks forward to continuing a collaborative dialogue with regulators and issuers on efforts to strengthen the sustainability of the ACA and continue to provide clarity and access to coverage for patients in the future.  We will provide additional details on our third quarter earnings call on Wednesday, November 2, 2016.

http://phx.corporate-ir.net/phoenix.zhtml?c=76556&p=irol-newsArticle_print&ID=2217263

Stock up about 6% after this press release.

loganc

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Re: DVA DaVita HealthCare Partners
« Reply #74 on: October 31, 2016, 08:19:27 AM »
So how does divination become more profitable over time if market share is purposefully kept steady? More patients? Raise prices on commercial only patients?

For that we'd need to hear from the divine master WEB (and/or his foil "the West Coast Philosopher")

Why do you keep referencing Buffett with respect to the DVA investment?  It is very well known that this is Weschler's investment.

DooDiligence

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Re: DVA DaVita HealthCare Partners
« Reply #75 on: October 31, 2016, 08:27:23 AM »
So how does divination become more profitable over time if market share is purposefully kept steady? More patients? Raise prices on commercial only patients?

For that we'd need to hear from the divine master WEB (and/or his foil "the West Coast Philosopher")

Why do you keep referencing Buffett with respect to the DVA investment?  It is very well known that this is Weschler's investment.

Whatever (you don't think he was in on any discussions?)
BRK.B - 24.9% // Healthcare 22.5% - EW NVO // Auto's & Oil 18.4% - CLB GPC PSX VDE

Banking 9.4% - WFC // Entertainment 4.7% - DIS // Drinkers & Smokers 6.4% - MO

Retail 9.0% - ULTA VLGEA

---

%'s held @ MV 2/25/20 fully invested
18 months of $

i trumpet my ignorance

https://twitter.com/tunawis

rb

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Re: DVA DaVita HealthCare Partners
« Reply #76 on: October 31, 2016, 08:36:31 AM »
So how does divination become more profitable over time if market share is purposefully kept steady? More patients? Raise prices on commercial only patients?

For that we'd need to hear from the divine master WEB (and/or his foil "the West Coast Philosopher")

Why do you keep referencing Buffett with respect to the DVA investment?  It is very well known that this is Weschler's investment.

Whatever (you don't think he was in on any discussions?)
No I don't. DVA was ported over from Peninsula.

DooDiligence

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Re: DVA DaVita HealthCare Partners
« Reply #77 on: October 31, 2016, 08:41:13 AM »
So how does divination become more profitable over time if market share is purposefully kept steady? More patients? Raise prices on commercial only patients?

For that we'd need to hear from the divine master WEB (and/or his foil "the West Coast Philosopher")

Why do you keep referencing Buffett with respect to the DVA investment?  It is very well known that this is Weschler's investment.

Whatever (you don't think he was in on any discussions?)
No I don't. DVA was ported over from Peninsula.

Awesome; so that means a guy I greatly admire had nothing to do with buying into a company I never even put on a watchlist (yay!)
BRK.B - 24.9% // Healthcare 22.5% - EW NVO // Auto's & Oil 18.4% - CLB GPC PSX VDE

Banking 9.4% - WFC // Entertainment 4.7% - DIS // Drinkers & Smokers 6.4% - MO

Retail 9.0% - ULTA VLGEA

---

%'s held @ MV 2/25/20 fully invested
18 months of $

i trumpet my ignorance

https://twitter.com/tunawis

flesh

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Re: DVA DaVita HealthCare Partners
« Reply #78 on: October 31, 2016, 09:30:29 AM »
So how does divination become more profitable over time if market share is purposefully kept steady? More patients? Raise prices on commercial only patients?

Demographics.

Plus, Dialysis patients are living longer. Also, more older patients (baby boomers) are suffering from ESRD than before. The 70-75 category is growing fastest in % terms. If this trend continues, this could be meaningful combined with growing life expectancy's. 








rb

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Re: DVA DaVita HealthCare Partners
« Reply #79 on: October 31, 2016, 09:34:39 AM »
Awesome; so that means a guy I greatly admire had nothing to do with buying into a company I never even put on a watchlist (yay!)
And that would be your 8th irrelevant post on the DaVita. If you're not interested in DVA and don't have anything to add why are you on this thread?

You may be looking to boost your post count, but the rest of us are actually interested in the subject.