Bank Of America Comments On Davita Cost Structure

According to Bank of America, Davita DVA should be able to adjust its cost structure to begin making a margin on the Medicare biz vs. historically break even. Bank of America said that CMS issued the 2012 proposed dialysis regulation (effective 1/1/12). “Overall, the rule is slightly better than expected, as CMS calls for a 3.0% market basket increase less productivity adjustment of 1.2% for a net update of +1.8% to the bundled rate.” Davita closed on Friday at $87.20.