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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Graham Osborn who wrote (57889)	8/28/2016 9:55:12 AM
From: Spekulatius	Read Replies (1) \| Respond to of 78748

Re DVA - their last last acquisition was in 2013 (Health care partners, a hospital chain) and growth is now largely organic in the Kidney core business. I don't think DVA is a rollup. I also know that they integrate their acquisition onto their existing systems operationally and financially very quickly, while traditional rollups often keep their acquisitions separate (because they don't have the management capacity to integrate acquisitions). As for the reimbursement, I found it interesting that they actually lose money on the Medicaid patients. THeir private layers are only a but it more than 10% of the patients, but 30%+ of the revenues, so they provide 3x the revenue/patient. Then the Medicare/aid patients are needed to provide utilization. In any case, this seems to me like the margin squeeze may not have much further to go, but I could be wrong on this count. I think this business has some favorable attributes, as well as unfavorable ones. For now, I put this on my watchlist. FWIW, Buffet owns some shares since 2013 or so, which I think is a positive.