DaVita Expects No Significant Impact Of COVID-19 On Q1 Results - Quick Facts

(RTTNews) - DaVita HealthCare Partners Inc. (DVA) announced Monday that it currently expects no significant impact from coronavirus (COVID-19) on its first quarter financial results as financial impacts of COVID-19 on the company were not felt until late into the first quarter.

However, future results could vary materially from the guidance provided because of the uncertainty created by the COVID-19 pandemic.

DaVita expects that the short-term financial impact of COVID-19 resulting from its increased costs, lost revenue and its increase in the treatment of the uninsured, may be offset by the CARES Act payment DaVita received of approximately $ 240 million.

The company also currently estimates increased revenue from the suspension of 2% Medicare sequestration from May 1, 2020, through December 31, 2020 to be approximately $50 million.

The company believes the long-term impact of COVID-19 will be primarily driven by the severity and duration of the pandemic, the pandemic's impact on the U.S. and global economies and the timing, scope and effectiveness of federal, state and local governmental responses.

At this time, the company cannot reasonably estimate the ultimate impact COVID-19 will have, but the adverse impact could be material.

Meanwhile, DaVita has maintained business process continuity during the pandemic by enabling most back office teammates to work productively remotely, and the company has not experienced any significant issues in billing or cash collections as of the end of the first quarter.