DaVita (DVA) 1 Aug 182018 Q2 Earnings call transcript

Good evening. My name is Christine, and I will be your conference facilitator for today. At this time, I would like to welcome everyone to DaVita's second quarter 2018 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 period. you. Thank Mr. begin may conference. your you Gustafson,

the President and Thank Kent quarter company. Thiry, to And Vice second our CEO; everyone, call. you, I'm me We are: Gustafson, our Christine, conference DaVita in forward-looking Rodriguez, this appreciate our of President. Hilger, Please meaning interest Relations. that Care; during Ackerman, welcome, your today our statements Zumwalt, Chief CFO; Javier Kidney LeAnne Vice Investor our Accounting of we Group make will call, Joel Jim with within CEO of laws. securities Jim Officer; continued and federal note

forward-looking All uncertainty subject that are to to and the cause unknown the actual results risks those of statements. these could from differ known statements materially and in described

concerning Form please first uncertainty, report details and further filings, refer earlier and and on risks earnings on quarter XX-Q. our our these Report XX-K our including Annual today SEC of release quarterly Form recent to most For

upon to Our update are currently and statements. no duty us, not do forward-looking intend based and these to we undertake statements information available

Executive remind measures that our press Additionally, measures call to available and of I'll release turn the to to website. non-GAAP now will GAAP measures. A you non-GAAP the in over like during reconciliation these we this Thiry, to comparable the SEC most discuss is Officer. we'd Chief included some financial call, financial submitted our earnings on our Kent

three your points and in Jim, up all Thank you, make phone there thanks to quick interest the out DaVita. I'll on for front.

operations. we strong Kidney review, for a Care will Javier had As quarters

year. significant number track continues share to during cash to the three sale is point second close and progress process deployed The is the towards quarter. repurchases we've DMG on And this is

of lowest rate call, we are causes started clinical always, since delivered of the tracking with these quarter, In as Infection our I a as start rates. infection the is company, in leading the first second hospitalizations our we one results. However, will population. caregiving foremost and we

over is For of even by quality clinical unambiguous in costs leads happy not And life rate as patients, This note, on peritonitis infection improvement the and quality year for of outpatients a year, the X% decreased also on by our better in-center to dramatic – the over bloodstream only the an lower XX% year example year. Javier. actually decreased it things to turn I side, system. improvement that over will improved

Thank afternoon. you, Kent, and good

on dialysis with strong, earnings Joe into will I'll was then and solid the financials, our in detail. give growth quarter second high-level go more three The business. solid and points fundamentals you

normalized the First, non-acquired quarter. first growth was for flat

in up quarter. Second, revenue debt first for Medicare recoveries second bad per treatment was the adjusting after slightly and

wage we continued to On today's five call, costs pressure. contain Third, on focus topics. our will I despite

rate reality. ago. probably encouraged Medicare back to was Medicare offset where help growing preliminary you five inflationary rates and increase, of will as no practically XXXX After be a fee-for-service in be environment again the weeks few know, years First, released we are an

utilization D Kidney to calcimimetics and Across be Second, B look to the a to go margin the quarter. quarter, economics to we In to transition continues business, calcimimetics, our mid-single-digit the Part well. the our similar second drugs. Part indirect first of impact expect the costs before net reimbursement from Care administer

Medicare by charitable in premium a are patients' industry dialysis to commercial dialysis the assistance insurance; access policies the private we charities qualified. seeks teammates, the our next limiting one, with reimbursement to rates; topic, an California has and In There California some human three ballot committed restrict bill will for and patients face third to in issues the different private hurdles creating number faces activities opposes: on Ohio our and community shareholders. that update providers' the number against benefit public on to patients our weeks, from me pass. they're seeking provide two measure contract if to that it and to the For and payers interferes measures reimbursement let of in know we the to and is will measure of similar ballot patients, measures three, Ohio. advocating a bad behalf number to likely The capture two, our the the

be broad whatever groups with and measures to are Unfortunately, XXX a We negative On verdict lifesaving such of flawed. GranuFlo, handed providers dialysis used do to patient use to of involving and components voters measures the topic, fourth intend a therapy are the on educate as educating jury oppose one expensive. recently produce on of DaVita's regulations why around and is to over working a a dialysis. these healthcare necessary will coalition complex these to down voters GranuFlo,

our of DaVita's case, I over on has Before and of to decades. always comment priority first and patient the two want patients. reducing a record be has care quality improving of DaVita mortality will I last life continue clear safety to clear. be the and the patient been

not is case, law. the supported we the facts verdict to do believe on the the by Now or

final pursuing We overturn not and topic this is believe will avenues verdict do in will current My verdict that to form. be fifth DaVita its stand the all and Rx.

reimbursement the Rx. reductions, of changes about in pharmacy in hurt space, DaVita the have the economics talked we including As oral past,

to a high-quality medication a new As our management capabilities. services maintaining a manner deliver looking cost-effective patients are while way we for to in result, more pharmacy our

the of will be functions and outsourcing service As such, we fulfillment Rx. DaVita customer

beyond, part of in we handle dialysis our be capabilities management XXXX patients. will lab similarly segment, provide accounted care how our to U.S. labs. for and We renal-related maintain Rx which will us of in-house, as will help and medication dialysis DaVita our differentiated what remains And integrated to

These guidance our operations absorbing clinical me allowed income advocacy the by operating Let us to significant strong. anticipated while that emphasizing maintain results finish underlying dialysis results adjusted range remain the and costs.

results. and on some our Joel financial for Now to details

of in debt recoveries million relating we the operations income we second periods XXXX. million. includes prior continuing operating above beginning from non-recurring expected. Adjusted million $XX $XXX bad for This was to revenue the quarter Thanks, is standards recognition to $X slightly Medicare the implemented the $X from change in Javier. million at This

you forward. we this We from from As $XX recall, significant any going change. recognized prior-period this not revenue million do will in QX expect

this commercial Excluding by decline net treatment treatment seasonal approximately partially dialysis revenue driven per offset previous impact, government was the an was up in This rates, acute a quarter. in mix. from increase $X by and

our of portfolio quarter's review noise in three quarter, changes creating strategic the resulted continued Our in some this business financials.

management an related $XX breakeven first Rx, First, of to following assets Javier's million and the in half in business before the XXXX, fees write-off up excluding charge intercompany comments DaVita Rx on of was on QX. approximately

plan. to These are the charges income some incur expect excluded to guidance. related in We and year adjusted the operating of charges additional remainder from this

For Rx on Rx. the half the expect costs operations our DaVita from net due million we to been for the In second transition. $XX income loss financial impact during of guidance in DaVita XXXX million $XX to to continuing an operations. adjusted significant This no year, adjusted expect operating of loss incur duplicative we and reflected has beyond,

remaining Independence Second, stake sold Blue our to Cross. Tandigm in we

which million, operations. we a of an of As included after-tax have sale, recognized our is in $XX this gain result discontinued

adjusted a and from operating operating Health operating in income income and guidance. $XX sold which adjusted is of gain one-time income million, recognized June we Paladina our Third, excluded

continue the we in to DMG, of sale to XXXX. transaction be the on close track Regarding

international, was from $X income which For million venture. million, our operating $X included foreign in gain our balance cash adjusted the in quarter exchange a joint the Asia-Pacific

adjusted excluding late breakeven to We operating continue expect is XXXX income operating XXXX. This losses. or in our for adjusted achieve enterprise any in income guidance exchange gains to foreign incorporated

from Now cash operating $XXX operations flow, the continuing million cash was quarter. flow for

the expect We be billion billion. to continuing year $X.X $X.X operations to continue OCF to from for

expect operations with for previously. $XXX be to We million for CapEx we continuing also year the approximately mentioned the consistent

purchased July Finally includes to XXXX, $X.X $XXX XX.X shares since representing on XX, outstanding This of beginning our approximately year. the of our for call. we of X% million shares stock earnings repurchases, the billion, share approximately nearly repurchased million approximately year last through at date

approved an of additional total of early approximately of enhanced XX $X.X repurchase deployment we remaining was As billion. we year. liquidity the last Directors our we this authorization. On XX, The as said later expect amount of July an quarter, authorization view repurchase this Board July our share as

the recognized adjusted guidance advocacy fact we are costs recur. the Therefore, have the This our efforts. include operating revenue of underlying positive significantly This $XX the and but costs year we that recognized $X.X the two the anticipated in bad guidance revenue the are operating at included increased confidence the the positive the this first our year, We that tax $XX maintaining and of union new now half range guidance half be in expected not union second first our than our this second income we in $XX the our also annual change DaVita incurred half second expected rate income of countering in accounting guidance, we impacts is the the For million Medicare because debt performance half. weighted tax maintaining expected first loss in in to implementation expect items our not negative we DaVita income increasing of costs billion, operating half to to Rx, additional Solutions to in two billion the adjusted half are costs the and expected but in first negative range expected advocacy items heavily This the updated third million policy The in and guidance does do to items shows cost The in $X.X quarter the with lower $XX in for these Health the the of result standards are while countering first policy XXXX. items of quarter. half. anticipated half are imply the in adjusted due year efforts. higher to million costs in the incorporating in deductible. million associated revenue some costs the expect second in financial

Rx our on in quarter, to effective second was quarter. the rate attributable DaVita the operations For continuing XX.X% tax from income

For rate XX.X%. we the XX.X% income attributable on full tax to from our be year, to effective expect DaVita now continuing operations to

I closing over some Kent for will turn to it remarks. Now

of union non-business few restatement on quick friction, we A number of external particularly material one, the a amount the side. are of key experiencing a takeaways;

however, on we positioned model current to the two, we generate And be Q&A And integrated providing and longer Importantly, lastly, strong of context well care kidney the continue to we that, term both three, operator, can care with for to strategically go the in across flows. number continue patients cash number the please? business to country.

session. begin At Fischbeck Kevin first Q&A this we'll in of question And the America. time, Bank Thank of from is our queue you.

Your line is now open.

about the – the least how of to say at let's midpoint that through see to guidance, your range? you $XX you advocacy didn't that the wanted costs, actually now guidance. end Is guidance saying you're I that includes be, more comfortable the going comfortable but you're year at the it at low costs thanks. are or Great, core million fair that say say to and of are additional business improved guidance has that the of much the

that are positive say adding I guidance side. a where and expect this obviously cost fact the the Is to I guidance costs advocacy we is advocacy be about responsive? comfortable that based the not guess we to we relative would range new coming costs the where beforehand in interpret bringing anything and I are maintaining the would on expected in. to be had in

I going to not comment. basically saying you're It's guess.

potential fine things, So these ballot. California two things if about the bills through? were impact how be do Ohio the think I those mentioned though. going you guess When we the quantify you that's to and

ask dynamic. because new Kevin, there's we in play the day figured and very so you'd not the literally answer many is there are Unfortunately, every question. variables satisfying a

mostly patients you imagine, passes be if in different. they're the all ballot are centers can instantly But in have unsustainable. very will approximately California, that you'll initiative that As XX,XXX treated being

unrealistic. that a a going for there's that some be is to so assume just backup of kind to And plan,

there question it to there regulatory to to the a is got well, then are legal policy we play into, It's things number. do, to some going But do to how you've go a crisis too then okay your go give and you not avoid makers hard or into some intervention So out if we're and so. would and forth. on could challenges and some by be answer to so is so going

all go because questions to right, people the you payers, back do rather help to clarify how this to only ballot average. is than a the All to payers that couple have the the which can what interpreted margin Can to mean I've on tied trying actually margin about the maybe site actually your clarify initiative of the things. you is across some commercial XX% just from says is gotten that rebates margin interpretation XX% payers language applied? California people commercial

be ballot the we've with careful the is phrase allowable and allowable XXX% cost, defines margin First of of got to all, because defined. XX% poorly cost

lot and not. to it's what's of So debate to in a be what it there's going as

So to there's probably not assume is that margin realistic XX% there.

As to the the to patient, rebate it, that question of the it a it commercial relates commercial asking? Is part think plan. I you second is second and were the that is

that allowable XX% the than you Medicare. commercial of overall your is be apply Medicaid, but at customers, the level you're it to facility obviously that not on your that rather the different commercial all were things. costs only commercial If that site help. applied had Medicare you And on would the making or to payers and to thing? side It's of a the done rebate would profits plan, across a is XX% would only therefore, cost, Obviously, it to which allowable that if includes increase Medicare, of

Right, Medicare instances. on payers costs all to the many because facto all cost in low so the essence it's de in is

thinking are commercial about really You payers. the

the guys guess, about that's go in were think how impacts bill – question we're that it. be of $XXX is you to if Would way think the how The on you How thinking then weighted California, that. do closer the would some is more to net be the about California CP-X quantified to gross million being it that million? that's the you or before being similar okay, I about in I and that to guess of that would just think offsets do about – the about do then, away. there order Yeah, impact the exposure of by on you California say exposure number And last that, debated rough think $XXX terms? have number is you be that XX% magnitude

bill if guidance it you is numbers we for one patients it's math not that because the got effectively the on straightforward eliminate because you and charity assistance. the charitable between this bill, to and at the dialysis past the in Unfortunately, assistance could look OIG relating gave the the inconsistencies dialysis

income So it could literally population. result in disproportionately hurting low

And is they is dynamic be are population with less behave, to competitors, again, that go deeper that displaced, centers? keeps capacity it would cetera? at changing. in every their twist, et SB the that changes new they you having introduces And what's go plan would time so into a So have then pick, because what how So want to quite in don't to our have. happening patients but intuitive essence and XXXX math not having are they pocketbook into you it their level

more lied, one I question. Actually Okay.

fan got I you big these a that you on advance stock three the I'm stock could in if I meaningful closing of things, good guess back of company. to things But back closing. visibility buying one did of DMG you've front guess be any about three in of these how these things? Given guys think buying

do And it, company given valuing how risks? that's thanks. the you So those think about potential

want is accumulate have number to decide stock closing by as wanting pace forward, things to some rapidly long-term artificially DMG the tough but and not of items the high principles, company uncertainty our which of these a which were the value obviously given our looking we price. which to at the during to using we a to well at and that looking answer, question that influenced three It's buy, the create to as Kevin, stuck intrinsic

you that's So all mix, our in that put terms and in we buyback of the for where came quarter. out the

you. Thank

our And of Tanal next from Thank you. Goldman Steve is question Sachs.

line is now open. Your

I'm RPTs anything just on cost was if from for calcimimetics on any good it understand less reimbursement XXX on guys. patient per margin just and spike either of Thanks whether QX? been bps like profit at there there's the treatment, Hi, down the care there the And change I about to were a question. curious gross measure. that year or afternoon, looks standpoint margin has the as year out taking guess a guess treatment, looking to I per measure versus just side, we

was Yeah, Obviously, all so things. out, an to things XXXX. out the is to a few you've XXX(k), to improvement going which noise. back the Two point one artificial

the be to thing margins. would that year-over-year at probably biggest call out to So single how adjust looking

Got it, okay.

you that that the actually was the about with is year, I $XXX that So for exactly? consistent to million And still too. is ask going ratable and

I'm part second of the hear that? didn't Is sorry, the I question.

the recall. that the and for be? if year, the for headwind I'm cadence still I similar was you just XXX(k) it's to it'd guidance The check if million where to of trying $XXX expected

Yes, it is, year. the and it's relatively flat across

a not lot quarterly there's in So variation of that.

then just there, there modeled to line, just out Great. to G&A anything relative use how least run controlled, or secondly, on at to Is going good rate forward? a looked unusual well it it. we that the And is break

to best not at number, report The there's do that. thing annual much to and as is look an to on it

It I measure okay. just you the And Ohio. for lastly said comments news like maybe clarify that reports it out It is Got has suggest wanted ballot sounded seems Is the qualified. on that like to the it, case? not. there's just me,

that's apologize heard. No, I what you if

next I will couple qualifies, the August if believe, so weeks. We find XX, out it in on

Thank it, so still uncertain. you. Got okay,

Thank you.

Wolfe from Thank you. And Justin of Lake Research. your next is question

now is line open. Your

can you incremental good afternoon, question all absorb back OI want the on to that Kevin's good Thanks. obviously I to Good costs. very evening. go guide, just these

ballot to competitive you that keep give Can the of us estimate, cost call? gave just the that number. and or Rx us want you out is ballpark DaVita a You too

it we'd correct, like You're to keep out.

Okay.

for like and you answering. Thank that. asking I

Well, teaching am you guys are trainable. me, I

that – a million got probabilistically, to second August would within the it's you have you business think range. so history more the course? guidance higher So do that I range, ask. to wide you I it's think Where thing and there, think doing still the within there's Where think guidance fall, I know you've higher? you're likely do visibility don't unreasonable in of so X $XXX range the of end. more

that advocacy uncertainty wide stage so the range an think contributing the remains year. remains I Yeah, in reason at the to is so this is that

in comfortable with think it where the the I we'll we're of and range, out. range, just terms let play In

tell Maybe you quarter, certainly consensus Okay. was OI. ahead you of It in terms I internal Can and for to can like how it this us of looked you tell us where think your relative expectation? were? looked my it estimates

think and guide don't where to quarterly I year. for comment guiding on can We visibility quarterly, gives came We're we with relative offer. internal you the to we're expectations. to We that going don't stick we that the going out think

tax more. ask us Okay, tell is points? I'll one up you XXX Can why basis rate the

the we the in that year balance our – advocacy to expected to of spend of in or non-deductibility expect balance costs pay Yes, the the of year. it's the

Justin, I misspoke in script. the

I was the DaVita not clear. basis that deductible. with said yes, is in think wasn't just XXX is a fault. I Rx. which the I associated meant referenced That foot advocacy, I But DaVita, was just the points I from tax – case

advocacy there's next for to cost, back the original your rate no as revert as year, long Okay, so would tax guidance.

is a charge? one-time this So

it forward, change advocacy view going on fundamental not Depending to a tax you rate. the yes, how

Thanks. Okay, jump the I'll in queue. great. back

Thank of RBC Markets. is Frank you. Capital The next Morgan from question

Your is now open. line

ahead appetite you Kevin's initiative your XXXX, both ballot two heard program, earlier of on I'll guess purchases question for I $X.X ahead the under left the follow those what of and about billion in your Clearly, buybacks. you SB of further is existing now correctly, light of this events? with outcome what's Yes, I if up

to do buybacks, want don't feel we reluctant have buy going stock about not Frank, any It's up that. to compelled given into been but strategy artificially period. something what and to communicating very We in to the comfortable signal. about then our to we want comment we're drive we're

but for the the up you will quarter so in don't I or we ballot continue particular color any buyback So have with strategy, to be initiative. our next leading

No any guidance absorbing change from flow? your advocacy costs, at CapEx just in for cash in changes cash outlook looking in of those free terms ops flow

the million past still the No, $XXX in given is we've a number still number. good

just or any question, any final patient, updates, there Thanks. a regulatory any or timing thoughts updated from then around And thoughts the Okay. legislative a perspective?

figure have it's real This We is that We short KT. bring it's our shot. answer we we But hearing need it didn't up still very, reasonable every fingers if and CBO score. comes still paragraph. we the shot. we The because that the have CBO week hope a us out many of level, is a real of alive, proactively very are at you sick and the for And a that for cross score. case

Okay, thanks.

you. Thank

And Thank of next you. question Ransom James. Raymond is our John from

Your is open. now line

Hi. any, I'm agent, noise gate questions is next to there a very so chatty and me. if background the loud for for two sorry Southwest quick

done As do any year, have and way you early a after you expectations this next year, that? the relationship of for of could Is CapEx is you think too there it bracket to or analysis CapEx more growth? about

So our $XXX the will with things million. our down low had number million for those more and that back aligned unusual, closely away, go couple that in so, and will number, saying roughly we year, a comfortable that's view to XXXX are were that worth that XXXX a $XXX next we something head of is

almost – Is no that's roughly permanent your Xx that's so what? the just matter depreciation. that Okay, plateau,

one second. on Hold

Okay.

minutes back Why on see the don't a in few way? come satisfactory reflect you give to can us we question and a

just It like number, but... seems big a

Let me take it.

Sure.

call it it's most development wouldn't Remember, our It's new not million tied – – million sorry, The CapEx. a The CapEx, growth. of that John. definitely $XXX is is $XXX to I'm plateau. I maintenance

said and about stuff that, initiatives well de lower are small build That said, prepared on I we're down the last some cost XXXX. IT trend spend both briefly to ways to number ahead as guide mentioned about number through thinking like I that We to get of what ideas novos, as in to don't the quarter. around on we've the our think lowering any call larger

know And the pharmacy will transition ongoing Okay, you've done, be contribution fair out the business? what be good do of the half you year. I back that called secondly, for initiative, would and losses of some for When enough. think the expectations the

be The will in a it and transition in QX, maybe will into post slips little QX, economics XXXX be irrelevant. that the

it to way So go Is the breakeven that to from or saying would you're losing what basically about it? P&L. think a off

a That's good way to think about it.

So it's a good guess.

asked last a about asset I and the two I pretty were calls it So pharmacy that guys think keep. you call that to ago, or wanted adamant strategic was you

So last your what made that two changed you in change quarters mind? the

It's a change, John. mainly revenue

contractual time. a had and quite rapid, of It generic, and some a that being quite in So for in we've went went couple the the has potential pricing drug was of generic generic, decrease changes it the pricing.

combination the one. right painful, revenue while of made hits several the decision, the So

you, Thank have. I that's enough. fair all Okay,

you. Thank

question our Gary Thank is you. Taylor from JPMorgan. next And of

line open. Your is now

good really, morning, Good morning. good afternoon. Hi,

I $XX, you is you essentially had it right $XX be question, a contribution different... similar it was precise? it Is as on treatment. quarter, first said said first Would more was In it the Just per know the revenue quarter. you on calcimimetics,

Yeah, $XX, it's change. material about no

is line income, that was there What item million was like contributing of usually almost looks income. it investment material, a operating to the And driving equity that figure? not $XX

We are taking a Gary. look,

million. $X.XXX think it I was Yeah,

talk louder? even a you could tad Gary, And,

sorry. Oh, I'm yes,

have through foreign investment, I'll venture equity to exchange line. the the an Yeah, APAC that remind and joint swings we equity Gary, that is that come you related

think so You – said had it. about you that called FX was half million, $X I of

is $XX not dollars but So quarter, million a is or...? think it fair million few line to necessarily probably a that

that not to and either over in time. I period any you contribute around of should sustained direction expect think swing

was more the million that Okay, a the quick $X positive ancillary two I added – like was just loss XQ DaVita Rx it ones. XQ, $X don't in in yet. looks It million think

driving So was there something that?

I'm sorry, the line? ancillary about asking you're

in and give I was plus about good $X it so it million guy? negative million this million Yes, income, a was where you $X think $XX XQ quarter, negative the sequential operating

noise some line. there's Yeah, in that

had which it In had QX up, $XX was it number, a million QX, which write a guy. good guy. was in $XX good think DHS I Paladina the the million

have might that one. follow to Okay, on

Oh that Rx yeah, also running minus the million had line. $XX QX and through

have I folks. might I'm up not to I Okay, won't follow up sure all I but understand it's because so tie better, that,

I to your just revenue government fluctuation normalized bad Just I commercial mix, quarter I make may per up $X $XX side of the on on consider said XQ that I less Medicare make $XX just in treatment less I changing understand be puts but intra-year guess some from to per per first about treatment increase But would maybe math wanted think rates, don't understanding there's wanted to I you debt take last the question I'd Medicare the follow if sequentially lot your to government million the sure recovery treatment commercial. is, the so revenue was there I generally million a and that. so rate intra-year. $XXX was that sure properly. XQ, It you be recoveries some XQ. related

within – There's government fee-for-service is Medicare managed Medicaid. line, not there only our Advantage. Medicare is Medicaid the government payer. and fee-for-service remember, some Yeah, There's

So as shifts those between mix the some see you shifts buckets, can in RPT.

Thank all had. you, that's I

Thank you.

The next from of Lake Wolfe Research. Justin one is

now Your is open. line

Thanks, a few more questions.

can little can further DMG when you the what met sale clock the track. a with process request, so the you understand For anything anything? do we here be left us? Is said bit, might to is second there share on instance, You

both Really to much in add, XXXX. it to are not closed working get parties

pretty continues Okay, anything on commercial mix in the quarter in steady? to terms or it be of up, down,

out, call Justin. Nothing to

million you on then envelope share numbers, I the just and back of And repo, Okay. some back shares. ran bought XX

little year I million think to a have we're over XXX date. up pulling shares about traded

the is is been I'm X.X% – ahead the share about rhyme just volume to factor So be that of that X.X% the forward, think can just timing the you percentage responsible use – you of proxy? X.X% that's factor of really to you've for as guys to there? out number I'm or have a and bought, just that trying curious purchases don't if what it about and gating that that to reason volume. looking Is gating no or is or there's going the

use to wouldn't our quarter I we of are percentage not driving the say in that factor of that's What would as been does volume buybacks. thinking But for times. the think a a I or proxy about year the can how the over what course we affect we at date, buy.

asked indicated basis I you advocacy want deductibility lack had Okay. of coming I not that Is costs. that about to is When points, that confirm. then up just the tax from of of most XXX all going correct? lastly, And if the rate

Yes.

So DaVita right? do Rx else, didn't anything to have that or with

to that will No, largely advocacy. that, it's related there are in other the tax the flow small to but through things related change law

I costs All to together change two and rate? math tax right. to what basically to you people to in here going point a your do going have think Because and into can advocacy put are how then basis XXX – what's is much two drive be

and is rate the a was old range the a to get range, new want you math rate the I Yes, but do.

walk number is everybody Is only that $XX say sure going to on? up and you'd that up to I'm us that or because million, I down want I'm do a it. picking

are want going don't we what on to spend. We comment to

that's for me. it Okay, Thanks.

question Thank you. in time. at this last that's the And queue

months. again everyone, in your We'll for thanks, right, talk three you. to interest. Thank All you

participation. Thank And for concludes Thank your that call. you. you today's

disconnect. now may You