FRESENIUS MEDICAL CARE AG & CO. KGAA

(FME)
  Report
Real-time Estimate Tradegate  -  11:10 2022-08-12 am EDT
36.73 EUR   -0.61%
08/08Credit Suisse Cuts Price Target on Fresenius Medical Care to EUR47 From EUR61, Citing 'Major Margin Pressure,' Keeps Neutral Rating
MT
08/08FMC FRESENIUS MEDICAL CARE AG & CO KGAA : Receives a Buy rating from Berenberg
MD
08/05FMC FRESENIUS MEDICAL CARE AG & CO KGAA : Credit Suisse sticks Neutral
MD
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

U.S. Supreme Court rules against DaVita over dialysis coverage

06/21/2022 | 01:27pm EDT
The outdoor sign seen at the DaVita Dialysis clinic in Denver

(Reuters) - The U.S. Supreme Court on Tuesday rejected kidney dialysis provider DaVita Inc's claims that an Ohio hospital's employee health plan discriminates against patients with end-stage renal disease by reimbursing them at low rates in hopes they would switch to Medicare.

In a 7-2 decision authored by conservative Justice Brett Kavanaugh, the court ruled that Marietta Memorial Hospital's employee health plan did not violate federal law by limiting benefits for outpatient dialysis because it did so without regard to whether patients had end-stage renal disease. A lower court had ruled in favor of Denver-based DaVita.

DaVita, which provides kidney dialysis services through a network of outpatient clinics, sued in 2018, arguing that the hospital's plan violated the Medicare Secondary Payer statute, under which Medicare, the government healthcare program for those ages 65 and older, pays only after a patient's existing insurance plan does.

Given the high costs of care for end-stage renal disease, the law bars health plans from differentiating benefits it provides people with the disease and those without it.

Kavanaugh wrote that while Congress could mandate health plans provide particular benefits, the Medicare Secondary Payer statute does not dictate any particular level of dialysis coverage by a health plan.

"Neither the statute nor DaVita offers a basis for determining when coverage for outpatient dialysis could be considered inadequate," Kavanaugh wrote.

Following the ruling, shares of DaVita, one of the two largest dialysis providers in the country, fell 10.5% in midday trading. Shares in German rival Fresenius Medical Care dropped 9%.

DaVita's lawyers had said a ruling against the company could open the door to other private health plans adopting terms to limit coverage for expensive dialysis treatments, forcing patients end-stage renal disease to switch to Medicare.

End-stage renal disease is a condition in which a person's kidneys cease functioning. It can be treated with a kidney transplant or dialysis.

"Alongside the kidney care community, we are deeply disappointed by today's Supreme Court decision to upend an important protection for Americans with chronic kidney failure," Javier Rodriguez, DaVita's chief executive, said in a statement.

John Kulewicz, a lawyer for Marietta's plan, thanked the court "for the close reading that it has given to the Medicare Secondary Payer Act."

Justice Elena Kagan, in a dissenting opinion joined by fellow liberal Justice Sonia Sotomayor, said the ruling created a "massive and inexplicable workaround" to a prohibition aimed at preventing health plans from "foisting" the cost of dialysis onto Medicare.

"Now Congress will have to fix a statute this Court has broken," Kagan wrote.

(Reporting by Nate Raymond in Boston; Editing by Will Dunham)

By Nate Raymond


© Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
FRESENIUS MEDICAL CARE AG & CO. KGAA -0.49% 36.78 Delayed Quote.-35.33%
FRESENIUS SE & CO. KGAA -0.53% 24.57 Delayed Quote.-30.25%
All news about FRESENIUS MEDICAL CARE AG & CO. KGAA
08/08Credit Suisse Cuts Price Target on Fresenius Medical Care to EUR47 From EUR61, Citing '..
MT
08/08FMC FRESENIUS MEDICAL CARE AG & CO K : Receives a Buy rating from Berenberg
MD
08/05FMC FRESENIUS MEDICAL CARE AG & CO K : Credit Suisse sticks Neutral
MD
08/05FMC FRESENIUS MEDICAL CARE AG & CO K : Barclays reiterates its Neutral rating
MD
08/05FMC FRESENIUS MEDICAL CARE AG & CO K : Warburg Research reiterates its Neutral rating
MD
08/04Amgen to Acquire Drugmaker ChemoCentryx in $3.7 Billion Deal
MT
08/02Fresenius Medical Care and Cytosorbents Corporation Expand Their Partnership by Establi..
CI
08/02GLOBAL MARKETS LIVE : Uber, Pinterest, KKR, Oracle, Twitter...
MS
08/02FRESENIUS MEDICAL CARE : publishes financial results for the second quarter and first half..
PU
08/02Fresenius Medical Care AG & Co. KGaA Reports Earnings Results for the Second Quarter an..
CI
More news
Analyst Recommendations on FRESENIUS MEDICAL CARE AG & CO. KGAA
More recommendations
Financials
Sales 2022 19 086 M 19 708 M 19 708 M
Net income 2022 700 M 723 M 723 M
Net Debt 2022 11 545 M 11 921 M 11 921 M
P/E ratio 2022 15,9x
Yield 2022 2,98%
Capitalization 10 842 M 11 195 M 11 195 M
EV / Sales 2022 1,17x
EV / Sales 2023 1,09x
Nbr of Employees 123 153
Free-Float 67,9%
Chart FRESENIUS MEDICAL CARE AG & CO. KGAA
Duration : Period :
Fresenius Medical Care AG & Co. KGaA Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends FRESENIUS MEDICAL CARE AG & CO. KGAA
Short TermMid-TermLong Term
TrendsBearishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 15
Last Close Price 36,95 €
Average target price 46,78 €
Spread / Average Target 26,6%
EPS Revisions
Managers and Directors
Rice Powell Chief Executive Officer
Helen Giza Chief Financial & Transformation Officer
Dieter Schenk Chairman-Supervisory Board
Franklin W. Maddux Executive VP-Clinical & Scientific Affairs
Rolf Allan Classon Vice Chairman-Supervisory Board
Sector and Competitors