DaVita HealthCare Partners Inc DVA
Q2 2010 Earnings Call Transcript

Transcript Call Date 08/02/2010

Operator: Welcome to the DaVita Second Quarter 2010 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. Thank you.

I'd now like to turn the conference over to Mr. Jim Gustafson. Sir, you may begin.

Jim Gustafson - VP, IR: Welcome everyone to our second quarter conference call. We appreciate your continued interest in the Company. I’m Jim Gustafson, Vice President of Investor Relations; and with me today are Kent Thiry, our Chief Executive Officer; Luis Borgen, our Chief Financial Officer; as well as LeAnne Zumwalt and Rich Whitney.

I’d like to start with our forward-looking disclosure statements. During this call, we may make forward-looking statements within the meaning of the Federal Securities laws. All of these statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements.

For further details concerning these risks and uncertainties, please refer to our SEC filings including our most recent quarterly report on Form 10-Q and annual report on Form 10-K. Our forward-looking statements are based on information currently available to us and we do not intend or undertake no duty to update these statements for any reason.

Additionally, we’d like to remind you that during this call we will discuss some non-GAAP financial measures. A reconciliation of these non-GAAP measures to the most comparable GAAP financial measures is included in our Form 8-K submitted to the SEC and available on our website.

I’ll now turn the call over to Kent Thiry, our Chief Executive Officer.

Kent J. Thiry - Chairman and CEO: Thanks, Jim. This was a tough quarter in which we were able to offset the revenue per treatment declines with operating cost management to deliver on flat operating income as we told you to expect last quarter. Luis will as usual offer more commentary on the quarter, I will cover three topics. One, clinical outcomes; two, bundling; three, outlook.

First, clinical outcomes. We always present them first because that is what must come first. We are first and foremost a caregiver company, now serving more than 122,000 patients. A, with respect to adequacy to essentially how well we are doing in removing toxins from our patients' blood, this quarter 96% of our hemodialysis patients had a Kt/V greater than 1.2. This is 90-day data.

B, with respect to vascular access, 66% of our patients have fistulas, which is a preferred form of vascular access as many of you know. That’s also a 90-day data.

Third, anemia management; physicians have managed 67% of our patients to hemoglobin levels between 10 and 12 over the last quarter. For these and virtually all other clinical measures, our patient outcomes compare very favorably to national averages, consistently the best or amongst the best.

Our quality of critical care, we remind you, not only results in healthier patients, but also drives substantial reductions in hospitalizations and surgical procedures, and therefore generates significant savings to the U.S. taxpayer.

Read our Earnings Call Transcript disclaimer.
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