No. 3 Dialysis Business Merger

A newly approved merger seals one of the largest recent dialysis business deals. U.S. Renal Care (USRC, Plano, TX) announced in early January that it had finalized its deal to merge with DSI Renal. U.S. Renal Care, already the nation’s third largest provider of dialysis, will now operate 300 outpatient clinics, 147 home dialysis programs, and 26 acute care hospital contracts throughout the United States.

DSI Renal, based in Nashville, TN, had been treating about 7000 patients at the time of the merger, according to its website in January. The company has only existed in its latest form since 2011, but the dialysis provider is well established in Nashville, according to Nashville Business Journal. The forerunner of DSI sold to DaVita in 2011, but afterward investment firms announced a new partnership and investment that formed the most recent DSI business, the Journal reported.

The newly merged company will serve about 23,000 patients in 33 states, as well as sites in Guam. As of Jan. 1, 2016, when the terms of the merger were realized, USRC became responsible for 99 facilities and 58 home-based therapy programs operated by DSI Renal.

In comparison, DaVita, the second largest dialysis business in the country, serves 173,000 patients in 46 states, which is about 13.3 percent of U.S. Renal Care’s clientele, according to its latest annual report. In the 2014 Annual Report (released in May 2015), DaVita noted that it “believes it has about a 35% share of the market.” (Fresenius North America, part of the conglomerate Fresenius Medical Care based in Germany, is the number 1 provider of dialysis services.)

U.S. Renal’s 300 dialysis clinic business is 13.8 percent of the 2179 DaVita dialysis centers. DaVita also provides acute inpatient dialysis to approximately 1000 hospitals.