Davita HealthCare Partners Inc.

Beverly FuSam Kim Jeff MajdaliTerese MarcotteMatt Moe

Team 4

Company Overview◦ History, what it does, recent acquisitions

Industry Analysis◦ Key competitors, implied strategies, opportunities and

challenges in the market (use 5 forces) Corporate Strategy

◦ Internal capabilities, where it adds value across business ◦ Where and how they compete◦ Implied and stated strategies

Final Analysis◦ Will the company succeed or fail?◦ Is its strategy in line with market opportunity?◦ How has Davita’s strategy changed across time?

Outline

Previous Name: Davita Inc (incorporated on April 4, 1994) until Nov 2, 2012

Dialysis service: 1,809 Centers in 43 states, 142,000 patients (12/31/2011); service 900 hospitals and related laboratory services; 11 outpatient dialysis centers in 3 foreign countries

# of employees (2011): 41,000

Company Overview

Outline:• Main lines of business• Background/history• Growth pattern• Company size, etc

Operating Revenue (2011): $6,982,214 th USD P/L for period (2011): 478,336 th USD Total Assets (2011): 8,892,172 th USD

Company PerformanceOutline:• Margin, Revenue, and

Stock Performance • Growth of company in

terms of assets, employees, facilities, maybe break down organic vs inorganic growth

Operating Revenue (2011): $6,982,214 th USD P/L for period (2011): 478,336 th USD Total Assets (2011): 8,892,172 th USD Market Cap (Jan 31, 2013): 11,276 mil USD

Company PerformanceOutline:• Might need 2nd slide for

company performance

January 2013: acquired 9 dialysis centers from Fresenius Medical Care (FMC)

November 1, 2012: merger with Healthcare Partners holdings, LLC

January 2012: Acquired controlling interest in NephroLife

September 2, 2011: Acquired

Recent AcquisitionsOutline:• Create categories for

acquisitions• Provide insight into

reason for acquisitions – will evaluate success of acquisitions in last section

Size of market, growth of market – us CAGR◦ National vs World opportunity.

Drivers of growth◦ ie, demographics, lifestyle, disease trends

Challenges facing the industry ◦ – in home dialysis and declining reimbursements?

Industry Analysis

Key Competitors◦ Implied strategies of competitors (do they bring different value to the market, are

some better at contracting vs operations?◦ Market share, brand and recognition, customer or consumer report ranking◦ Consider creating table of competitor and key attributes, ie where they compete

Industry Analysis

Five Forces

Industry Analysis

RIVALRY

Buyers powerx

Suppliers power

•x

Barriers to entry

•x

Threat of substitutes

•x

Internal capabilities, key resources Where it adds value across business Where and how they compete Implied and stated strategies How have acquisitions faired This might be 2-3 slides long – appropriate to use SWOT here Map strategy in generic strategies strategy box

See link below for DaVita justification for Health Partners Merger◦ http://www.faqs.org/sec-filings/120521/DAVITA-INC_8-K_FORM2/d356822dex992.htm

Corporate Strategy

x

◦ x

SWOT AnalysisIN

TER

NA

L A

NA

LYSIS

EX

TER

NA

L AN

ALY

SIS

•X

STRENGHTS

•X

THREATS

•X

WEAKNESSES

•X

OPPORTUNITIES

SWOT

S O

W T

Tie strategies to company performance – market cap, and or stock performance, PE ratio.

Corporate Strategy

Consider Doing a White Space Map for Industry

Future Industry Analysis

◦ Will the company succeed or fail?◦ Are internal capabilities aligned with strategies? ◦ Is its strategy in line with market opportunity?◦ How has Davita’s strategy changed across time?◦ Tie strategies to changes in stock performance?◦ Lesson’s learned?

Final Analysis

◦ DaVita outperformans Dow, S&P, and IHF ETF ◦ U.S. Healthcare Providers ETF, strong representation of

hospitals as well as healthplans. Includes 4% DaVita

Final Analysis

◦ DaVita outperformans Dow, S&P, and IHF ETF ◦ U.S. Healthcare Providers ETF, strong representation of

hospitals as well as healthplans. Includes 4% DaVita

Final Analysis