Kidney Dialysis Centers Industry Profile

Companies in this industry provide outpatient kidney dialysis services. Major companies include US-based DaVita and Dialysis Clinic, Inc., and Germany-based Fresenius Medical Care and B. Braun Melsungen.

The US commercial kidney dialysis industry includes about 4,200 centers with combined annual revenue of about $16 billion. High growth is forecast for this industry for the next two years. Key drivers for demand include the aging population and increases in the number of people with end-stage renal disease (ESRD).

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. The US industry is highly concentrated: the four largest companies operate more than 90 percent of all centers. Small operators can compete successfully if they have centers in desirable locations or good relations with doctors who refer patients.

Nearly 600,000 people have end-stage renal disease (ESRD) in the US. More than 350,000 of them receive treatment in dialysis centers, a number expected to grow 3 to 5 percent per year.

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 ...