DaVita generates revenue primarily by providing dialysis services to patients with end-stage renal disease (ESRD), a condition requiring either dialysis or kidney transplantation for survival. In FY2024, dialysis patient service revenues were $12.26 billion (95.7% of total revenue), with other revenues of $555 million (4.3%) from integrated kidney care, laboratory services, and ancillary operations. The US dialysis business represents approximately 88% of consolidated revenues. Revenue is recognized on a per-treatment basis, with the amount dependent on the payer type and contracted rates. In 2024, DaVita provided 29.05 million treatments at an average of 92,534 treatments per day, with revenue per treatment of $391.32. The payer mix is the critical determinant of profitability. Medicare and Medicaid account for 67% of US dialysis patient service revenue ($8.21 billion) but generate thin margins because government reimbursement rates are set by federal regulation and typically do not cover full costs. Commercial insurance contributes 33% of revenue ($4.05 billion) but generates the majority of profitability because commercial rates are negotiated and typically 3-4x Medicare rates. A single patient transitioning from commercial to Medicare coverage can reduce DaVita's revenue per treatment by 60-70%, making commercial mix retention the central strategic priority. DaVita's cost structure is dominated by patient care costs, which were $258.12 per treatment in 2024 (66% of revenue per treatment). These costs include dialysis supplies, pharmaceuticals (particularly erythropoiesis-stimulating agents and iron supplements), labor, and facility costs. General and administrative expenses were approximately $316 million per quarter, or roughly $38.79 per treatment. Depreciation and amortization was $22.08 per treatment. The company's operating model centers on scale efficiencies: centralized purchasing of dialysis supplies and pharmaceuticals, standardized clinical protocols, and shared services for billing, collections, and administrative functions. DaVita operates its own pharmacy services to manage pharmaceutical costs and has invested in home dialysis capabilities to capture the industry shift toward peritoneal dialysis and home hemodialysis. The Integrated Kidney Care (IKC) segment manages approximately 71,300 patients in risk-based care arrangements representing $5.4 billion in annualized medical spend. These arrangements involve taking financial risk for the total cost of care for CKD and ESRD patients, with DaVita sharing in savings achieved through care coordination, disease management, and reduced hospitalizations. IKC generated an operating loss of $18 million in 2024 but is viewed as a long-term growth platform. International operations contributed $127 million in operating income in 2024, with centers in 13 countries including Brazil, Germany, Malaysia, and Colombia. The company is expanding internationally through acquisitions, including a Brazil acquisition expected to close in mid-2025. Capital allocation prioritizes share repurchases, debt reduction, and center development. In 2024, DaVita repurchased 9.83 million shares for $1.38 billion, invested $555 million in capital expenditures, and maintained a leverage ratio of 3.03x net debt to consolidated EBITDA—within the covenant maximum of 5.00x.