Latest news with #End-StageRenalDisease
Time of India
21-04-2025
- Health
- Time of India
Dialysis most availed of treatment under PMJAY
NEW DELHI: Dialysis has emerged as the most sought-after treatment under Ayushman Bharat-PM Jan Arogya Yojana. In the past six years since the central health scheme was launched, data shows more than 64 lakh patients have undergone the procedure. Tamil Nadu has carried out 7.3 lakh dialysis cycles, according to latest data uploaded by National Health Authority, implementing agency for AB-PMJAY, on its website. Madhya Pradesh is next at 5.4 lakh, followed by Uttar Pradesh (5L) and Gujarat (3.4L). ' Kidney failure is a chronic problem' Dialysis is provided free of cost to people under the scheme that offers an annual cover of Rs 5L a family for secondary and tertiary care hospitalisation. Senior citizens are eligible for the scheme irrespective of their economic status. Every year, about 2.2 lakh new patients of End-Stage Renal Disease (ESRD) get added in India resulting in additional demand for 3.4 crore dialysis every year. The cost of dialysis varies, with a typical per-session cost ranging from Rs 1,000 to Rs 5,000. 'Kidney failure is a chronic problem and patients suffering from the condition require undergoing dialysis twice weekly for survival. That's why the number of this procedure is so high,' Dr Shuchin Bajaj, founder director of Ujala Cygnus group of hospitals said. He added that diabetes is a leading cause of kidney failure and preventing or delaying its onset could help reduce risk of chronic kidney disease and, therefore, the need for dialysis. 'We also need to boost infrastructure and design policy to increase kidney transplants which can help such patients avoid dialysis,' Dr Bajaj added. The health ministry also runs 'Pradhan Mantri National Dialysis Program' (PMNDP) to make dialysis services available for free to the poor. Apart from dialysis, NHA data shows AB-PMJAY is utilised by the beneficiaries for procedures such as cataract removal, angioplasty, and caesarean deliveries.
Yahoo
18-04-2025
- Business
- Yahoo
DaVita Inc. (NYSE:DVA): A Case of Limited Growth Potential
We came across a bearish thesis on DaVita Inc. (NYSE:DVA) on ValueInvestorsClub by Fenkell. In this article, we will summarize the bears' thesis on DVA. The company's shares were trading at $147.00 when this thesis was published, vs. the closing price of $140.03 on Apr 17. Patients connected to dialysis machines in a hospital ward, highlighting the company's dialysis and intravenous therapies. DVA provides kidney dialysis services for patients suffering from chronic kidney failure in the United States. It operates kidney dialysis centers and provides related lab services in outpatient dialysis centers. Operating in a duopoly with Fresenius, it is expected that DVA should have a high pricing power. However, the US offers a unique challenge where dialysis is covered under Medicare, with private insurers stepping in for the first three years for those having coverage. Medicare is looking to limit the reimbursements and private insurers are not keen on providing coverage for dialysis. Therefore, DVA has not been able to ramp up the prices despite providing a critical service. DVA has been closing clinics, a sign that the volume growth has stalled. The End-Stage Renal Disease (ESRD) population grew by ~4%/year from 2007 to 2014, but this has dropped due to higher mortality of this population during COVID. The rate of new ESRD cases continues to fall with better treatment, healthier habits and a preference towards transplants. DVA has guided an average of 20 clinic closures per year which indicates that the post-COVID headwinds are certainly not temporary in nature. Dialysis treatment volumes are expected to grow at 3-5% with pricing growth limited due to the involvement of Medicare. There are other risks to factor that include kidney failure medications by Novo Nordisk and legislation to limit dialysis reimbursement rates that would curb DVA's ability to charge private insurers higher. DVA has also been accused of manipulating patients away from transplants in a bid to boost its own business. All these negativities have had a direct impact on its stock, with prices plunging 7-18% every time a negative news is announced. DVA has commanded a 17x forward FCF multiple under the assumption that growth rates would be higher. However, the industry headwinds should keep FCF flat at $9 if DVA manages to keep costs under check. A 10-12x multiple is justified due to the limited growth potential, offering a price target of $90-110. This presents a 22% downside when a higher multiple is considered. While we acknowledge the potential of DVA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DVA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Sign in to access your portfolio
