DaVita Inc.
Kidney Care and Dialysis ServicesFounded 1999- Updated July 2025
Reviewed by Swet Parvadiya
Last reviewed: July 2025
CorpDigest
DaVita Inc.
Company History
Founded 1999 in Denver, Colorado
Last reviewed: 2025-07-15 · By Swet Parvadiya
The merger of Total Renal Care and Renal Treatment Centers in 1999 created the entity that was renamed DaVita — Italian for "he gives life" — and Thiry immediately began rebuilding the organization around that identity.
Kent J. Thiry is an American healthcare executive who served as Chairman and CEO of DaVita Inc. from 1999 to 2019. A graduate of Harvard Business School and Stanford Law School, Thiry was recruited to lead DaVita when it was a struggling regional dialysis provider. He transformed the company through the Gambro acquisition, cultural innovation, and operational excellence, building DaVita into one of the largest kidney care companies in the world. Thiry also pursued political ambitions, running for Colorado governor and US Senate. He is known for his distinctive corporate culture philosophy and public speaking on healthcare and leadership.
Total Renal Care merged with Renal Treatment Centers to form a new company that would be renamed DaVita—Italian for 'giving life.' The merger created a national dialysis provider with approximately 300 centers, but the company struggled operationally and financially in its early years.
Kent Thiry was recruited as CEO of DaVita, bringing experience from Vivra Specialty Partners and consulting. Thiry implemented a transformative strategy including cultural renewal, operational discipline, and the 'village' concept that treated each dialysis center as a community. His leadership would define DaVita for the next two decades.
DaVita acquired Gambro Healthcare's US dialysis business for approximately $3.5 billion, more than doubling the company's size. Gambro was the third-largest dialysis provider in the United States, and the acquisition created a national network of approximately 1,500 centers, establishing DaVita as a true competitor to Fresenius Medical Care.
DaVita acquired HealthCare Partners, a large physician group management company, for approximately $4.42 billion. HealthCare Partners operated medical groups in California, Colorado, Florida, Nevada, New Mexico, and Washington, providing primary and specialty care to approximately 1.7 million patients. The acquisition was intended to create an integrated care platform.
DaVita announced the sale of DaVita Medical Group (formerly HealthCare Partners) to Optum for approximately $4.9 billion in cash. The sale reflected the challenges of integrating physician group management with dialysis operations and returned DaVita to its core kidney care focus. The transaction was completed in 2019.
Javier Rodriguez succeeded Kent Thiry as CEO of DaVita, after serving as COO. Rodriguez's appointment signaled a focus on operational execution, integrated kidney care, and value-based care initiatives. Thiry remained as Executive Chairman until fully stepping down in 2020.
Warren Buffett's Berkshire Hathaway began accumulating DaVita shares, eventually reaching approximately 45% ownership by 2025. The investment reflected Buffett's confidence in DaVita's predictable cash flows, market position, and capital returns. The concentrated ownership has provided both stability and volatility.
DaVita expanded its Integrated Kidney Care (IKC) platform, managing patients in risk-based arrangements with Medicare Advantage plans and CMS innovation models. The IKC platform grew to manage tens of thousands of patients, positioning DaVita as a care coordinator beyond traditional dialysis services.
DaVita accelerated investments in home dialysis capabilities, including peritoneal dialysis and home hemodialysis, in response to federal policy incentives. The Center Without Walls platform supported remote patient monitoring and care coordination for home dialysis patients.
DaVita reported FY2024 revenue of $12.82 billion, a 5.6% increase from 2023, with operating income of $2.09 billion. The company repurchased 9.83 million shares for $1.38 billion, reducing the share count by 9.3%. International operations expanded through acquisitions in Chile, Ecuador, and Colombia.
DaVita acquired Gambro Healthcare's US dialysis business to more than double its size and create a national network competitive with Fresenius Medical Care. Gambro was the third-largest dialysis provider in the United States, and the acquisition established the US dialysis duopoly.
DaVita acquired HealthCare Partners to diversify beyond dialysis into physician group management and integrated care. HealthCare Partners operated medical groups in California, Colorado, Florida, Nevada, New Mexico, and Washington, serving approximately 1.7 million patients.
DaVita has acquired dialysis providers in multiple international markets including Brazil, Colombia, Chile, Ecuador, Malaysia, and Saudi Arabia to expand its global footprint. These acquisitions target markets with underdeveloped dialysis infrastructure and growing demand.
DaVita Inc. emerged from Total Renal Care Holdings Inc. through 2000 restructuring (renaming to DaVita in October 2000) under leadership of Kent Thiry who became CEO in October 1999 as company faced severe operational and financial crisis (stock had fallen from $40+ to under $2 representing potential bankruptcy risk). Thiry's transformational leadership combined operational restructuring, cultural transformation through 'DaVita Way' values-based approach emphasising teamwork and patient care, financial restructuring supporting operational stabilization, and various other strategic moves. Strategic accomplishments included dramatic operational recovery supporting financial performance, continued geographic expansion across US dialysis market, major acquisitions including Gambro Healthcare US operations (2005 for $3.05 billion) supporting industry consolidation, and various other strategic initiatives. Revenue grew from approximately $1.5 billion (1999) to $12.8 billion (2024) through 25+ years of strategic execution. The DaVita name derives from Italian phrase 'giving life' reflecting cultural emphasis on patient care mission supporting strategic positioning.
DaVita acquired Gambro Healthcare's US dialysis operations in October 2005 for $3.05 billion gaining 565 dialysis clinics and 43,000 patients, transforming DaVita from second-largest US dialysis operator into dominant industry leader matching Fresenius Medical Care US operations. Strategic rationale combined operational scale advantages (combined entity reaching approximately 1,300 clinics supporting various operational efficiencies), patient volume growth supporting Medicare and commercial insurance contract negotiation leverage, geographic diversification across various US markets, and various other strategic priorities. Post-acquisition integration was successful supporting continued operational performance, with Gambro operations integrated into DaVita supporting various efficiency improvements. The acquisition established DaVita as one of two dominant US dialysis providers (alongside Fresenius Medical Care) supporting subsequent industry duopoly structure characterising current operations. Strategic implications include continued antitrust considerations limiting potential further consolidation, plus various other competitive dynamics. The 2005 Gambro acquisition represents continuing strategic foundation for current DaVita operations.
DaVita Inc. divested HealthCare Partners (medical group operations acquired May 2012 for $4.42 billion supporting integrated healthcare positioning) in June 2019 selling to Optum (UnitedHealth Group subsidiary) for $4.34 billion, refocusing operational strategy on core dialysis operations versus diversified healthcare positioning. Strategic rationale recognised that HealthCare Partners medical group operations had underperformed integration expectations with various operational challenges, regulatory issues including substantial financial settlements (DaVita Healthcare Partners paid $383 million 2018 settlement for Medicare Advantage billing issues), and various other strategic considerations supporting divestiture. The HealthCare Partners divestiture generated proceeds supporting substantial share buybacks (DaVita has executed approximately $11+ billion in cumulative buybacks across recent years), debt reduction, and various other capital deployment. Strategic refocus on dialysis operations supports clearer operational positioning, with continued DaVita strategic execution emphasising dialysis industry leadership rather than integrated healthcare diversification. Future strategic positioning continues dialysis focus through various competitive dynamics.
DaVita Inc. faces continued strategic challenges from various dialysis policy developments including 2019 Trump executive order encouraging home dialysis adoption (potentially affecting in-center dialysis economics), Medicare Advantage growth among dialysis patients affecting reimbursement dynamics, kidney transplant initiatives supporting alternative kidney disease treatment options, and various other policy considerations affecting dialysis industry positioning. Strategic responses include continued home dialysis (home hemodialysis, peritoneal dialysis) investment supporting various Medicare and policy priorities, integrated kidney care models combining dialysis with broader chronic kidney disease management, kidney transplant facilitation supporting various patient outcomes, value-based care initiatives supporting various reimbursement model evolution, and various other strategic moves. The continued policy environment affects various dialysis industry dynamics with continued operational implications. Strategic challenges include continued regulatory complexity managing various policy considerations, competitive responses across dialysis industry, and various other operational considerations. Future dialysis policy environment depends on continued regulatory developments affecting industry positioning.