Kidney Dialysis Centers Industry Profile

The US commercial kidney dialysis industry includes about 4,200 centers with combined annual revenue of about $18 billion. Major companies include DaVita, DSI Renal, Renal Care Group, and the US operations of Germany-based Fresenius Medical Care. The industry is highly concentrated: the four largest companies operate more than 90 percent of all centers.

COMPETITIVE LANDSCAPE

Demand depends on the number of people who suffer from kidney disease. The profitability of individual companies is linked to efficient operations and good marketing. Large companies have economies of scale in administrative costs, which has driven consolidation in the industry.

Small operators can compete successfully if they have centers in desirable locations or good relations with doctors who refer patients. About 370,000 people have end-stage renal disease (ESRD) in the US. Over 340,000 of them receive treatment in dialysis centers, a number expected to grow 3 to 5 percent per year. In addition to the 3,900 commercial dialysis centers, about 375 others are operated by hospitals and nonprofit organizations.

PRODUCTS, OPERATIONS & TECHNOLOGY

The industry provides a treatment called hemodialysis for patients who suffer from end-stage renal disease (ESRD). Hemodialysis, the most common form of treatment for ESRD, is not a cure but a blood-filtering process that prolongs life. ESRD patients must undergo dialysis for the rest of their lives. Without dialysis treatment or a kidney transplant, ESRD is a terminal disease. Diabetes and high blood pressure are the top two causes ...