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DaVita (DVA)

Participants
Jim Gustafson Vice President of Investor Relations
Javier Rodriguez Chief Executive Officer
Joel Ackerman Chief Financial Officer
Pito Chickering Deutsche Bank
Justin Lake Wolfe Research
Kevin Fischbeck Bank of America
Lisa Clive Bernstein
Call transcript
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Operator

Good evening. My name is Missy, and I’ll be your conference facilitator today. At this time, I’d like to welcome everyone to the DaVita Second Quarter 2021 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 Instructions] [Operator Mr. begin may your you conference. Gustafson,

Jim Gustafson

the And and call. we make We you, I’m CEO; Gustafson, Investor and within welcome, Rodriguez, our forward-looking are in that everyone, conference quarter Jim during Relations. federal of securities President Please second Joel our Vice me appreciate our may of laws. meaning company. today Javier to our Thank joining CFO. your note Ackerman, interest continued call, this statements

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

on concerning details XX-K report quarterly Form and further our SEC the and first XX-Q uncertainties, earnings on subsequent filings and these with For report please make our refer most to that Form risks and SEC. our we filings, subsequent release press including any quarter annual recent

and intend update forward-looking are to based upon information by required except duty to available currently no law. not we us, these may be undertake Our do as statements statements and

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

Javier Rodriguez

Jim, afternoon. good Thank and you,

XXXX performance, to excited today outlook to transform QX our our recent financial Care. are developments We talk you our Kidney to and strong on efforts about

kidney on seeking The failure. the and the at of kidney pilot XXXX. living factor for to DaVita donor. to patients since transplants and on over for is eligible further access transplantation, transplant waitlist. to the received the transplantation families transplant supporting aimed our pilot to a DaVita Shifting and highlight latest a get which advance, availability National announced kidney milestone we kidney limiting the expands who performed of are option the improving Increasing a patients the impact of transplant gain through donor is forward Last best a with conversation by stay cause touch collaborating focus let in on more information transplant. look patients equity with hard To has transplant to help treatment to COVID. support the yearlong donors. health of cumulative patients been education equity transplantation year access This from increasing transplant the a has We of worked start XXX,XXX Kidney transplantation direct learning number living pilot, to continuing clinical kidney customized transplantation our meaningful. Foundation me and to December, the and First, update to with the have on years in patients living improving and the the health annually. DaVita on from provides high organ, the receive this patients be the in kidney leader that

efforts our pandemic past the months. in several to over incredible We have combat progress made COVID-XX the

patients peak the continue through in of infections early than to COVID our significantly June, XX% down New last among more from the January. week drop

we similar have over see weeks. to rest the of the country, the uptick few However, last started an to

infections patients our low more are we than remain to vaccinated our the mortality XX% on believe still week peak. far, down seven-day an absolute more Thus from last average from of severe are a of that protected As basis rolling cases new basis, COVID. on as continues

in our And patients our to keep procedures vaccine teammates in and while we confident to the We about patients reduce our safe remain our designed our they’re continue hesitancy. educate and of policies benefits vaccine care. to

second strong the Now, We results income let earnings both me operating in delivered quarter. turn and share. financial in to performance per our

to expanded continue as delivering manage quality margins care. we while costs Our

in and delivered income, year-over-year share. result, we X% a per growth XX% adjusted our year-over-year As operating adjusted growth earnings in

this to buyback. particularly continue Our our and to strong our free return stock cash through quarter in shareholders we cashflow was

us, first now half the the increasing year. full for of With of guidance year midpoint we behind are the the

patients our Let reached gaining for as disease our me to have Value-based and progress efforts, transition IKC. to is an Integrated point. update Kidney care momentum Care in otherwise appears known kidney our inflection with

of with reduce the We and and believed improve coordinating that could healthcare have always needs patients ESKD CKD broader care outcomes dialysis healthcare total simultaneously costs.

build we years, are economics. we to our of and of point small at care. integrated of stage we’ve evolution in and programs the been shift variety understand to are capability now to the that ready a care pilots better the next For participating believe integrated We where

might now. towards healthcare. segments other of wondering Kidney The You be care either value-based not new trend why or Care is in

So what’s of viable changed to make a reasons. the scale developments today? couple of business There’s

payers Medicare MA and increasing for innovative the choosing to most advantage, of ways of patients patients to manage with patients ESKD plans. number benefit care These from tailored more MA growth looking than First, complex are should tend the be management.

initiated Second, model in payment Care. Kidney the CMS recently

We’re and year up of with XX January to nephrologists partner markets next in to participate to CKCC voluntary in preparing beginning program.

more provide into with also will enter value-based model CKCC in to operational other and us geographies participation arrangements. Our scale

that dataset create, develop value of and We patients a on regular kidney our care and patients, to our setting holistically. in our nephrologists, broad analytics care increased leaned with because platform our and clinical capabilities partnership well a modalities to interventions in and support various integrated our willingness we’re to deliver clinical win believe interactions to with economic our scale use positioned have take in confidence spans and that strong at care we consistent Lastly, to clinical of we’ve risks.

lowering of a have in costs improving outcomes, We and arrangements. for patient demonstrated patients coordinating risk track care record

of rates For of to With compared rest our give cost savings the business, as To lower to value-based Plan, management. a savings were able DaVita of annual industry county. life the approximately average to translated and better of other in the non-dialysis of to sense the center XX% same total almost we than in example, in program. XX% double our is care digit, you able the in for responsible Needs are which cost ESCOs, of of the under Special been the the managing arrangements, we by the our have within billion patients $X generate over the of today, mortality It more which scale into high-single relative dialysis U.S. patients costs medical care. represents

have management. costs. in various double other care we the of and for patients we have our payers, economic care with we arrangements integrated the kidney XXXX, risk to addition, size, which In both expect improving dollars incentives of forms in business and lowering and under In value-based number arrangements, quality

furthering to in and up out and we’re the of a this of our full building U.S. of OI included ancillary $XX the the our recognition, We have operating teams incremental out currently headwind see we number also and outcome in XXXX. guidance. lives loss we the savings expect dramatic to in clinical of in million the investment, consistent million we $XXX growth, revenue an segment at IKC CKD in under of of called as our scaling year risk This increase net loss because our doubling is from in growth segment. of next with business ancillary in the beginning a expect operating XXXX of prepare support our incur for XXXX. as To function, The model the well cost care is delays impact in year our result year course could in of

we as improvement in expect from to We we savings in contract XXXX significant that our performance XXXX new in begin and XXXX. financial the entered recognize beginning

our the plus five healthcare we could operating a over of billion outpatient serve income growth. facility, the of procedures XXX,XXX utilize patients the cost we IKC become country. driver significant believe sustainable physician $XX Over year of and services. including in approximately dialysis services, the dialysis business hospitalization, outside We horizon, across that Currently

to who in not In of patients, currently care centers. CKD manage upstream addition, opportunity an we do the dialyze our see

than that financial of In all managing about of for dialysis patients low-to-single been could years. Assuming, that as we meaningful cost for of this CKD as our patients opportunity. talking well more at half summary, margin, value-based digit total has are healthcare believe other be we care the

that, for excited the the to are DaVita lead With turn call I’ll over way. We to Joel.

Joel Ackerman

operational discipline Javier. continuing had strong the result challenges COVID Thanks, by primarily cost. on of quarter, continued as a presented and despite We a RPT performance strong

earnings For share the was quarter, $XXX million operating $X.XX. income were and per

what of travel $XX on approximately Our a to the similar primarily and saw elevated million, excess offset net and by expenses. mortality impact QX sequestration in partially we PPE relief, costs, of volume QX, COVID and results reduced meeting headwind include

declined the mortality QX is us, we’re than monitoring lower from QX QX. potential point, significantly in return will QX, increased additional the of At pre-pandemic especially volume, by approximately we growth that Delta lower-than-normal rates. impact day of to to mortality rates. in levels with QX variant, have worst within that X,XXX Turning vaccination we the country to pockets to an compared continue excess X.X% cautiously per to but the we’re believe from treatments fewer optimistic that closely Longer-term, XXX this treatment behind in tailwind in

obligations. this revenue improvements treatment to meeting their grew from dialysis sequentially normal due U.S. per patients primarily seasonal deductible $X and Our almost by quarter, co-insurance

patients enrolled the rate saw also were in Medicare flat Advantage. in costs government G&A Patient and We including continued favorable relatively and treatment changes expense growth of mix, care percentage quarter-over-quarter. in total the per in

to costs sequentially Our decreased patient care primarily costs. labor in reductions due

slightly in increased contributions charitable G&A costs. primarily increases and Our due to personnel

and benefit of the may days decreased reversed majority the ongoing, year. related see As the to in were QX, primarily on six an temporary DSO but the to by we the expected, in U.S. cash storms quarter. of first the dialysis holds our smaller billing lab DSO winter The flow the in storms and QX collections to balance approximately on QX, impact due versus of

of quarter, P&L. second our DaVita hit approximately $X the a one our Group the on line on generated income which we investments, Venture of other gain During million

was Medical The investment at We recently that have of a million. went public. in value investment this small Miromatrix quarter-end $XX

every will Going we market-to-market forward, quarter.

free Adjusted billion turning and the we flow operating $X.XX DaVita surge XX% fourth out we later two attributable of effective the the this are of year notable significant this Now tax billion on to initial a rate expect the These the mentioned, as cash $X.XX, of guidance $X.X of we to now at updates the share on raising billion and beginning adjusted follows. of and Also, year. XX% new thoughts half $X.XXX lower guidance XX% of some as impact our $X potential that per $X.X to earnings be call to XXXX rest of XXXX, Javier some for the to income second ranges COVID billion. potential on XXXX headwinds I’ll than our to range communicated XX% between income year. year. ranges exclude had during to

First COVID. is

the will XXXX. the We mortality expect of excess year, the in the continue in due impact to through than mortality be the of year half back first to half impact of the of higher compounding

also vaccinations testing, support the an on and delta to result expecting a related of costs teammate variant. We’re uptick as

are million. from of $XXX the first a COVID a year the the for middle half headwind of to million we full As the result, the increasing COVID year. to million second half $XX impact the That in year the of implies of from range compared $XXX

any middle of and reminder, additional impact a possible other on range mandate. is the wide or delta is the the of a COVID this of depending variants impacts As what

to approximately loss of value-based care the year. new expect of to CKCC and in ancillary incremental in second the in that launches is due million the experience $XX half the arrangements Second, in with the compared This our we to primarily half XXXX. start-up million year associated of losses segment program costs $XX first U.S.

cost Looking unusual business, expect drivers among do capital expenditures. XXXX primary the forward RPT, we or per treatment of not to the anything including

platform expect several OI first face of of the with past from the year IT our been the pressure we on business, we we not and clinical associated our years. However in increased union for the that expense new depreciation growing developing on have XXXX that possibility did growth activity IKC spend XXXX in

more from open on the lines our for provide specific Deutsche question Chickering line will Operator, We comes XXXX future from open. earnings Bank. questions. guidance Sir, [Operator call. Instructions] Pito let’s first is your Our

Pito Chickering

put and about costs can revenues us flows and taking here of you Lead in afternoon both services? doubling seeing the in the you through and you’re for and in years, can XXXX, these And disclose dialysis P&L the from the five number do P&L on in Is billion on so remind that revenues billion you begin script a to Hey questions. think in guys, so talking the disclosed new $X you my that the good additional single-digit that off much. a can margin for IKC on perspective other segments that you then When model billion that gross thanks you Thanks after how in and you ancillary $XX a billion will script? in referenced margin And high year year one, that in the the next capitated go? drag $X this $X where it? then arrangement?

Joel Ackerman

Thanks, Pito. all didn’t catch got please in but I hope jump that, I I of it. if

couple on an and the off, a few So which everything IKC through U.S. international. and The a proxy the over excellent segment, between of IKC that what the initiatives initiatives, small P&L. line. terms things, of in to strategic breaks got is years exited We’ve as initiatives P&L, simplified our starting our segment for we’ve we’ve than that where some U.S. of other it’s of it related strategic in is component exists down strategic last

So you it. revenue as a way I income at really look the using proxy business think of think SIs a IKC U.S. good as about our is and for component operating to both

that’s So one. number

can terms here, how over how look, enroll savings capture. of of where go time, members can lot much around questions be, ultimately we our a can rate are there this In will that what of many

And a a And single spend to a equivalent our we years it typical percent a drive number would what $XXX,XXX you’re and a would user a cost if something low you would think like is, way give what I with per question per cost will simple something OI. I to as management in reasonable management. digits, think population under under looking say the patient, plan of would then of margin. of medical out that the medical MA turn model few be something that in can this reasonably especially patient, to into be a ESKD third start

X%, in X%, what this is potential way the X%, cost think is that out in of under range maybe the medical So I X% the about think a as management, right percentage for years. to

Pito Chickering

is… This Okay.

Joel Ackerman

question you third sorry. which I’m had think had I didn’t – you Pito, a I catch.

Pito Chickering

Yes.

this period well. in Just are will forward guys as So there’s what revenues a all gross under management? progressions help there. disclosing patients us guess, I few begin as those model you going the

Joel Ackerman

Yes.

we going disclose So to I don’t think gross we’re call revenue. not that a number would

be disclose I of we’ve DMG, think And be would if management. will medical the script. the the that gross would cost revenue the that’s before, and number be what like seen were used medical revenue about disclose we under talked net some the a management $X they we the accounting, which something this in that components or were were accounting under that under cost would would they business Javier and gross billion and were that number we

Pito Chickering

half back assume a XQ? had treatment number at to the trying levels, then guys of COVID disclose of growth. quick the and excess mortality treatment you fair is And to And patients on Okay. treatment what understand And of in fourth it I’m the hope XQ us. if is the sort end a from growth as there just is quarter? model follow-up at of Can here you in current year growth these behind the positive going we remain the it

Joel Ackerman

Yes.

in treatments year-over-year day I model the per look, try news it a you at view. you QX. a news, view get I to So, better per patients think sequential QX over will day. me grew first number good through, and the than And is a good let is look of not right the treatments walk but think And

sequentially XXX down per grew a QX So and in treatments me day. try over on you. QX of bunch per things about it going is let day so in There and treatments for break there

news strong. First, the treatment remain good starts dialysis the to is new

result population of So to the to gotten about admissions. as dialysis new past continue question we’ve strong treatment a – that the has CKD within happened the in COVID, see we what

So there pressure right we don’t any now. feel

storms you’ll over in remember QX, led – the terms treatment In benefit to lower in from QX. storms the from QX QX, so in of volume did QX Yuri

comparison And the positive on That things said, QX in was few quarter. so a weighing there. the are there

First better pandemic, QX QX. as the with are acute expect getting in volumes would down over you

Saturdays a QX. treatments saw Tuesday, above below QX It unfavorable. remained that we we was point basis fewer was approximately of QX QX headwind came mortality above X,XXX excess in the Thursday, do Second, days Monday, a on normal. finally, what XXX, on in mix over about well in And but We Wednesdays down do Fridays, was XX and treatment than and from it’s less than still to normal.

So continues treatments strong. quarter-over-quarter, are summarize, numbers. the to there a is, new growing back the a to good we’re noise to said, bit the remained just be news to of situation That admissions dialysis where in

Pito Chickering

Great. Thanks so queue. the much. I’ll jump back in

Operator

you. Thank

question comes Wolfe Justin next Our from from Lake Research.

sir. open, is line Your

Justin Lake

Thanks. to I follow-up care. the wanted value-based on

to that the great you numbers. value-based to side? for to can government are able that beyond you value-based give going be dialysis have going to there question, put So you if in the contracting, And any MA contracting it above of is and that’s to kinds those – Are us going would Pito’s be just commercial you be also programs?

Joel Ackerman

as include MA, Yes, It that, that would traditional it the anything Justin. would all well on would Medicare, commercial of include as include side.

Justin Lake

Okay.

Does be ex-dialysis about margin, number $XX,XXX $XX,XXX, the about will that I spending when $X for that gross-up profitability, or that’s the dialysis includes are $XX,XXX include you talk talking the dialysis? on you you So, the talking about assume. you’re exclude all that When or billion?

Joel Ackerman

the dialysis includes It number.

Justin Lake

Okay.

Joel Ackerman

or XXX,XXX XX,XXX depending like would number patient time more on period. the So be what

Justin Lake

say, talk bit Can press the changed payer the on the positive. you in mentioned commercial a government? versus little bit a mix trend, to you that release your And should about the call, volume I Perfect. little

Javier Rodriguez

of is, not the Justin, a numerator, is issue. say. reality a lot to there’s a This bit denominator

and strong mortality on income commercial a and as You side lot more side people had Medicare held insurance, resilient anticipated. more the valued than we their so and the really is

dynamic nephrologists to So down participation then that with think of Yes, the And calculate that’s do about we savings, things Justin, the you’re that X% the the that that’s to you I has how and do doing, or other X%, and then couple how important in non-dialysis. dialysis you’re math care subtract trickle discussing A it here. have we’re you while and it’s value-based asking participation in you X% have talked dialysis. the in the to the percentages, a about. the Joel the put there savings roughly the payer/government

Justin Lake

help Okay, you the And the just quarter? growth can you that. thanks commercial treatment – can me for give with in

Joel Ackerman

I can about tell QX you, was in commercial bps XX up mix over QX.

Justin Lake

And then of… in great. terms Okay,

Joel Ackerman

a COVID much when you get passing would that a patients As your time. from don’t Medicare you as in reminder, are away in normal as

Justin Lake

last do in Or just apologize go then question for And this, is if mentioned for assume? back rate to should you this assume the tax and rate tax we rate but on, this new you XXXX? Okay. a Or that I the I expect tax to to continue change reasonable original XXXX. guidance missed year, XXXX? that’s the

Joel Ackerman

lot There’s how still it know will about we play out. don’t a

are this all reasonable year of if I perpetuity. will to assume think but it not in another not is year, seeing benefit continue for the some we

no. yes, for XXXX I’d say So XXXX,

Justin Lake

for Thanks, jump guys. back that. in. thanks Okay, I’ll

Javier Rodriguez

you. Thank

Operator

you. Thank

from of from Bank comes question Next America. Fischbeck Kevin

Your open, is line sir.

Kevin Fischbeck

that this, into All make want you’re sure making value-based this numbers around the I thanks. to investments just wanted right. these care. I are right, great, to dig

you or $XX goes million it this said and so million? million you $XXX Do think $XX $XXX $XXX you incremental million mean like did you think then I million to said $XXX sounded million. year like

Joel Ackerman

Incremental.

Kevin Fischbeck

Incremental.

net kind that start that as we inclusive offset about that Okay. of margin think number; value-based you to is guess, an is Is I is there make that that to number? – potential X% any on the a If profitability? a care, or of

Joel Ackerman

It’s a net number.

Kevin Fischbeck

the saying the that true? sounded that well, $XXX $XXX roll million the of number, is And then about you to does sort it okay. I is like guess included think million CKCC off that that $XXX all number, the And were there, and just million included? Net as

Javier Rodriguez

Yes.

start anticipation we year that So, will half beginning doesn’t growth. Kevin, of the investing XXXX. the CKCC back in But of the the till of in start

related So it’s to CKCC. are it’s that we of not building anticipation growth in – expense

Kevin Fischbeck

Yes.

back like, There’s sequential Okay. then And treatment that the takes should lot enrollment what into look once better guess growth, number. guess, a of at. way that’s I what puts get normal, I far to? to as as look to What growth a Like think look – I and to or rate X.X% the what a guess and I’m all annualize it normalizes, would you this numbers it annualized. X.X%, that is volume? a X% ultimately when Is number what like? it like do thinking, number. X% you is

Javier Rodriguez

Kevin, the of will for and is of I that so the the and is seeing, heard numbers. the at different we’re think new us. dynamics you there’s best now day, things the stabilize that let’s right we Joel, lot from The revert the end one interplay of to admin it pre-COVID data a we have as pre-COVID positive call

I best that so keep we you if assumption, the posted that’s changes. And think

Kevin Fischbeck

you’re there? sounds talk Okay. like And are could sounds companies And the what issues. seeing complaining guess about you then talked labor side, it bit number pressure. really you’re doing it a anything I of labor union a you on about about not like

actually meant next but right you a kind ballot more might labor not pressure of think year? I costs, initiatives that be initiatives ballot

Javier Rodriguez

Yeah, me let so grab a couple.

It about and pressure, not is there. but going very a the complain We’re marketplace. it’s absolutely competitive to dynamic

do. to our continue invest purpose we We dynamic. said, fulfillment the that the the is marketplace and again of in find differentiated great quite That workplace that in find a work teammates

might come union ballot. with relates to about are second yes, up As question, we talking it the another the

so resources, now pandemic to we’re want little to more to they not one every is surprised. the it, it a but And continue of talk it, in so good that hope we year no deal a to that, have had we a that about fact with empathetic the other in unfortunately, use just we’ve are

Kevin Fischbeck

with is there going last the to opportunity you’re this to we going players you’re be value-based do you’re to I or midsized or this and where the of is about as lift this that revenue kind largely is it differentiated. players the into volume from doing wouldn’t other a guess, is your just the same payers, and think then share? of what And industry to going that the going actually about see growth in doing so so is that care question think struggle you more smaller shifts in about really it is resonating of and result this kind the Do as you a expect, is you that push or what and Okay. share the margin gaining

Javier Rodriguez

and gets perspective, a interesting physician. the we from patient to From patient a to play. we’re of on volume lot choice of mix, a course an It’s us payer how well-positioned really choice dynamics believe that and a all there’s our way to

will I the whole so really want can be can because if we yes, go be time. that there as over that if transparency get there the people more transplant, and can I not to know, lot And see you outcomes hospitalized, show got longer value the But And the say, my I create, will where live answer that I going there’ll it. there. CKD gosh, that if get on, takes dynamic can a chain think be, time has clinical I

bit a of my until in making And out in shift right from a plays change this not so, assuming decision perspective more. I’m sort now, a

Kevin Fischbeck

thanks. great, right, All

Javier Rodriguez

you. Thank

Operator

Bernstein. Lisa from next [Operator from comes Instructions] question Clive Our

ma’am. is open line Your

Lisa Clive

the Hi, much. thanks prepared if it very Apologies missed remarks. in I

is compromised selected have So given for that vaccination your was giving what doses it say mates? also what in well vaccines and is third to and going just for efficacy? you you to you been in did for rate how patients, second your lastly, to quarters? team immune question, the the you’re wondering evolve seem then patients terms that the before testing are of coming the teammates still session every responded and not And patients And

Javier Rodriguez

at The please with in right. let is to teammates miss doses and All is back or then come if patient anyone around me. them complete want grab XX% But vaccinated I so, XX. two me

people that those significance we’re intend of tracking there the is the To are my in nothing to to or dosage X% in either third starting somewhere a cycle. getting thinking population. and of yet tracking that get first vaccine knowledge in their our We’re X% in are

that. question? so community but know it, last have the then don’t what on major I was that And your I And any numbers physician discussing is

Lisa Clive

of in Just that… terms

Javier Rodriguez

Testing, we test patients. the didn’t all

assumed I other What was of any course that get anyone do than And using offices patients symptoms. is, things, then tested of the they to in because when so question. hospitals think tested. other that lot we they’re test they go has get healthcare much we more course a our physician or or

they tested. disproportionately they’re But when So we just symptoms. test are

Lisa Clive

thanks much. very Okay,

Javier Rodriguez

Lisa. you, Thank

Operator

Thank you.

from Chickering Bank. Our from Pito next question comes Deutsche

Your line open is sir.

Pito Chickering

medical today as costs of collect are on these disclosures, are medical Hey, understanding about of taking bit half you costs. costs back guys. Thanks investors as billion gross other look that and $X in for in the follow-up Linking here. sort the revenues, my dialysis to half the other of piece IKC the confused or

a think billion, the X% X% should margin instead X% non-dialysis we a So when you $X about billion on on cost? X% margin, as referenced to $X to that’s so of full of

Javier Rodriguez

way decided standardize works, to we’ve but on fine math. Either full the way is do to cost, either way the perfectly

Pito Chickering

inflation Thanks were And down labor of our But perfect. then on one XQ, will treatment us what home sequentially further dialysis? you over much. years. next specifically couple Can shift of costs additional patient and about efficiencies think per areas. Obviously, with your by investor obviously so care number care make a on as concern costs. Okay, color our hit driven during I can here, cost I the in around drive patient the give center increasing occupancy

Javier Rodriguez

it, grab me we’ve of relates over as time. let inflation, course, been very Well, good to the it

X% over slightly last If right or years believe so below. at so, or our the you do I five CAGR we’re

thoughtfully And things in time view there’s productivity rate other like and levers pharmaceuticals, which so wage are supplies there, over very other miscellaneous we an we managing quite essence diligent the items and managing are course we on. of we’re and

will has we dynamics course, hope much over those COVID time. up that other think stabilizes we change So than dramatically PPE don’t that of gone and the during

As it. it have say to inflation, the particular we about relates to wage nothing really

dynamic We quite it’s does player that it period aggressively like are in marketplace another and this that feels itself. a or sustain really shifting now short right is

say can I all fair are that options is on So the possible. have of the we think at I their our aggressively the at pharmaceutical, that pharmaceutical and physicians multi-year, make best to the it the looking don’t sure price choice to all but comment

know questions. don’t if to I So I got of all your

part we around last aggressive on was are were utilization and when of watching went novo I very capacity it a time the de think We from very it to. we of build aggressively. the course

can that we and lot are we’re really more capital tapered which centers, lot a you more back a As home see, efficient. building

We keep here there to because know balance needs and patient need be in X% we check, the the of COVID. the interplay so roughly patients capacity between sort that lost available home as our and the and we will center during of

that look not portfolio patients We and taking are sure right capacity. are are aggressively have not make having access centers the our we to that our at a that

Pito Chickering

patients? being income Is about the question Okay. in penetration fair it your, for And your as IKC the think to segment for unchanged IKC the then, you sort of on dialysis increase at with now. operating last follow-up least

Javier Rodriguez

Yeah, I think that’s fair.

represents that’s about business why in linked We but our IKC, them income are separate as win to is, so to as trying you opportunity are far this excited way we if present they they are the in intricately, independent statements, in think will. present that we are are and and not to trying that a they fact the

the and business core the So business IKC historical you doing can how new how assess doing. dialysis

Pito Chickering

of think one role third results to last disclosures additional quarter kind give be around of then that press division? new to a us you release that able as just the Is for fair here. this it segment And or sort in

Javier Rodriguez

the are taking of level disclosure making on the the investment, IKC to right of We of cetera, about sure grows progress, come careful the economics the spending more what’s have the as so on the a look we shareholders et the land good understanding that. a where business, and business

Pito Chickering

guys. much so thanks Great,

Javier Rodriguez

you. Thank

Operator

time. this questions no Thank you. further at There queue are in

Javier Rodriguez

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Operator

does today’s conference. That conclude

disconnect may at for thank You this and joining. time you