DaVita (DVA) 22 Feb 232022 Q4 Earnings call transcript

Good evening. My name is Michelle, and I will be your conference facilitator today. At this time, I would like to welcome everyone to the DaVita Fourth Quarter 2022 Earnings Call. Today's conference is being recorded. [Operator Instructions]. Mr. your begin may you conference. Lien,

Investor welcome Thank our call. Nicolaisen, CEO; fourth me of conference and Joel CFO. our appreciate you, Group are your Rodriguez, President I'm and We company. continued quarter our joining our to interest Javier And Relations. Ackerman, Vice today in

this we make federal forward-looking note securities. within the Please call, that statements during the may meaning of

materially are and actual these statements subject those differ uncertainties results could of and risks to the All unknown in the that cause to forward-looking from described known statements.

and our and recent For may we our press quarter concerning on Form SEC the other these with further subsequent make XX-Q and report annual details uncertainties, subsequent risks please release filings all most refer to reports XX-K, fourth that filings, SEC. on our including quarterly earnings Form

statements and us, duty as Our by available on undertake we update law. do based may these forward-looking currently no intend statements, except and required to information to are be not

like our we'd the most some of is to and furnished during measures to to press we A non-GAAP earnings GAAP on these the call, Additionally, financial our financial that measures. included available non-GAAP measures comparable will website. release reconciliation discuss remind you in SEC this

over I to will the now turn call Rodriguez. Javier

Nick, behind society, mortality the whether for of getting it. capabilities start like year the We're you, ahead long-term with the XXXX grateful winter finally thank of a and pandemic of optimism our joining and uncertainty We and Thank the wondering is the COVID and strategy. about without surge you a conviction with today. of call for all bunch through and a mix continued COVID-related in worst

that, said, the and progress within months to cautious by experiencing which That in control, labor. invest optimism future. we in impact we've recent while we're we're on the because still made in the to continue is our today encouraged our our I'm improve volume

on XXXX focus on a of fourth the and our few our summary then quarter priorities For XXXX results outlook. and spend minutes a with strategic future today, I'll with end then

these into always dive a I I I'll clinical topics, as start, with Before do, highlight.

most serving I'll the quality Our measures the purpose. of directly clinical of And that many our patient that decrease life a vitality vulnerable There important successful those patients. moment are to population. infection today, are impactful amongst and to take efforts rates recognize our improve initiatives

blood measure is and success One as our I'm we tracking that patients for This rate quarter year gift just and we and infection, improvement year. the a share of way low is proud last bloodstream our efforts stream alone. by achieved an last to represent which infection a all-time the to many These for one undertaken reflects results XX% family. their patients hospitalizations within of have tremendous we mortality, reduce third

results. I to will pivot our now

end income adjusted generated our from operations at at XXXX full revised came we full operating million for and Our flow. the per share billion. free guidance $X.XX year of year continuing top cash was of in $X.XX XXXX Adjusted $XXX the earnings

improvement in across fourth third be primary coming labor with cost. our than high to was fourth certainly labor was the of quarter The quarter. at performance challenging end our range The dimensions driver quarter continues environment better in of many

$XX still a focus expect expected. will significant XXXX results reducing XXXX. than labor million, our by to pre-COVID be earlier that on in improvement higher highlight, contract $XX be levels but particular One labor produced We than contract to will million

increased teammates retention. we the staffing in We continue levels and to as to work make stabilize progress center during hiring quarter

to historical in levels. labor continue this to retention note, training typical than drive increase in capacity XXXX until will higher and costs Of onboarding normalizes

XXXX growth but historical pressure wage at We levels continue norms expect XXXX. above in below wage anticipate to

a improvement for dynamic key highly remain remain the our will and performance. markets optimism labor in in XXXX, early swing Despite factor

confidence increased improvements quarter. us give we discussed results in quarter fourth last achieving the Our

overall the in relief from rates a were guidance historically winter and and last On quarter. and Because patients mortality lower COVID January quarter. December, material by for X,XXX were lack relative volumes to for to our expectations has access caregivers. infection our our is in a volume, years, QX the which treatment in provided has welcome our in December in the our improvement with in line surge occurred than our surge in result results of late in prior for QX total compared expectations not as patients mortality did approximately but range our last to expectations, in XXXX reduced

variable missed key Last to quarter, treatment our and we admissions patient is rates highlighted volume. a also that

pressure line in but We the on see continue of metrics, with recent our expectations. most levels both to at the

For XXXX, our guidance wide of the given outcomes range we in continue of to uncertainty volume possible the use virus. a

have shifted a range possibility the not of for the up a but winter account so We COVID lack to later surge of fully meaningful have the discounted the in year. far surge

down the event end XXXX. to equal, relative year X% else Our the to us of better move the a of the includes of range our towards volume a range. lack XXXX flat All remainder volume would guidance of COVID over treatment

the future Looking a pursue and to our We goals a create commitment set year our priorities. our forward that resolute remain XXXX, and for strategic exciting of to company. strong we with robust in kicked off patients

with X innovation. these priorities highlight beginning I will of today,

digital supporting we're modernization. approaching year, journey to provide this towards designed in next-generation of our and After platform. records we're data to deploying development, seamless kidney years and care access patient a cloud-based First, new This our locations, is across integrated reporting system clinical key enhancing milestone IT analytics.

our alive This across will for our the superior Rollout while experience a system centers for provide in platform teammates partners be is physician and patients. clinical enhancing our care in XXXX. and underway, the country expect well we will

system coordination Second, on policy, the transplant, payment bundle innovative home time, an advanced same Health to better the for we're community the CMMI increases. initiatives Kidney reflect model to Equity. with remains active year-over-year and working and cost enhance care Care that improve update industry advocating to around At

protection kidney benefit through and restore with And efforts. patients legislative continue community for to the regulatory our broader finally, we working

Third, appropriate. home our educating modality In clinically our new to patient home options. committed programs, country X,XXX educate their of transitional we dialysis modalities existing operationally, we remain were launching care are to our on patients position support increase the of to and across programs adoption over

integration working home of technology toward informational a create also better We're to management. platform full patient for our a holistic ecosystem

year Integrated expected our Kidney Fourth, growth. Care business to another deliver is significant of patient

our be better with segment. on physicians important growing its the the better of capabilities partners, within particularly an increased purpose building for and us continue patients, with for achieve Medicare economic it driving scale, to With will collaborations an IKC our for to Advantage our of benefit year outcomes payer alignment

finally, our these a cost And disciplined initiatives, to maintaining fuel we're approach with structure.

of consolidation have which, facilities this capacity footprint pace patient volumes. our as of ongoing Medicare example, includes know, align This therapy the with is particularly discipline to our you For with fee-for-service on and the the treatment ESA context not important increasing rates, transition our ongoing costs. in kept care

you a be many and the can efforts, focused As year these will we I on firmly dynamic XXXX see, key remain of previously drivers across mentioned. operating

out to outlook. Now shifting

of persisting on billion operating of offset positive previously labor the per $X.XX. the of For and initiatives reflects volume year the by XXXX, latest to continued headwinds outlined. winter income for views moderating with have impact of adjusted share to of a over cost-saving billion $X.X This balance avoiding initiating the surge pressures $X.XX the we we're benefit earnings our $X.X and guidance adjusted

X% Looking of longer more from labor to OI and the trajectory we if adjusted growth X%. to continue return COVID see a we impact would term, to normal moderating diminished expect pressure, to

in I will now Joel it our detail. our over outlook discuss to performance turn more and to financial

Thanks, Javier.

Let and on guidance. add more share few then me details on QX XXXX a first some performance I'll color

we operating QX, of in For continuing in adjusted the operations, share top which year of $XXX right $X.XX the at guidance we per from of updated and last provided earnings delivered full adjusted quarter. the coming million income range resulted

dialysis day patient to treatment and segment, down were seasonal third due of excess This per to rate. count lower higher For expectations. our the U.S. the line X.X% missed quarter treatments a in result with was mortality compared the

leverage $X.XX labor offset There contract up in X quarter. costs care benefits treatment Adjusted volume. treatment seasonal fixed lower year-end primary in cost were expense, of decline were patient drivers sequentially. flu and the because lower this of per cost by increase: These was the

driven was quarter-over-quarter. million decrease G&A $XX million QX. This down $XX the of in primarily by was Adjusted initiative expense ballot California

segments. other our to Turning

operating primarily expense acquisition acquisitions there's P&L. IKC is in business, decrease in exchange decreased income quarter-over-quarter. This For was driven by in roughly This to income and so International headwinds operating impact Brazil. our million on the an an net adjusted taxes no related million offsetting has expense quarter-over-quarter. flat foreign $X $XX

not did During shares. repurchase QX, any we

target our capital excess our pay As return deployment to EBITDA. we to call, to to the ratio the communicated primary X.Xx down on QX be of Xx debt will of leverage

Turning XXXX. to

guidance. some our more Let me add detail on

adjusted the QX operating billion our our significant winter guidance on COVID to is call $X.X treatment income to only lack comments billion. volume surge. higher XXXX, expectations about $X.X due update expectations the to for is the to of XXXX a Our our Compared

me X business drivers U.S. some latest the give dialysis let of more color, on To our through run the in expectations XXXX.

and and continued the in First, due to in primarily we annualization negative XXXX change expect XXXX. be X% between excess through year-over-year excess treatment to X the of volume mortality mortality

Advantage mix. X.X% by increase roughly Second, driven commercial we X/X X/X and treatment will by anticipate revenue approximately year-over-year, to increases X% Medicare per rate higher and

approximately patient X% growth we and from X.X% third, new care And per contract to anemia pressures, driven and cost-saving increase our by offset initiatives. treatment inflationary rate to partially expect by savings wage cost other

adjusted is due benefited which the absence help A is spend few thinking to of XXXX, of things additional our ballot $XX income Year-over-year about by operating in XXXX. each in to incorporated the approximately guidance. initiative your million

approximately QX treatment of in adjusted other than labor. things: per QX factors to and to the million timing we expect $XXX impacting due OI be adjusted average among lower RPT, QX of to XXXX, million operating to typical Regarding income quarter seasonal days $XX

half with our will anticipate close we the transaction the disclosed first Medtronic, Regarding of agreement previously year. this in

Our initial cash be approximately investment million $XXX at closing. will

expect below of quarter and in the remainder of million we XXXX, the be the pretax The this assumes second OI million approximately over in approximately losses per EPS year. which will On million XXXX. $XX of the P&L, in $X.XX impact quarter $XX $XX approximately

slightly to XXXX. This savings. growth is we be to XXXX shared to relative in increased by by flat driven IKC, partially offset expenses, For down OI additional expect

is to $XXX year expense million the interest $XXX assumption million. for Our

we an in flow, to For EBITDA. income ratio rate free million. be On XX% finally, to XXXX the $XXX of cash to to continuing And X.Xx of XXXX at million we range $XXX operations of leverage effective of end cash flow expect from anticipate X.Xx our we the anticipate XX%. tax,

open today. our for the comments call concludes for That Operator, prepared please Q&A.

[Operator Instructions].

Andrew UBS. first with Our is Mok caller

high this of revised the OI the for end leaving delivered you the unchanged. you're start, XXXX guide To but quarter, growth

dynamics a sounds like trending better? are those better, understand And XXXX? both OI better so us bit Because would can and volumes a you presumably help which outlook labor costs it to lead for

that Yes, Andrew, take one. I'll

So really as a of guidance I'd quarter we of second on say we the largely came And winter things. our X to high the learned One you QX call, didn't the gave range, highlighted, surge. we've is, the at the have as is end out result labor. relative a

improvement no the As guidance just improvement looked really the for we XXXX. the from X earlier we we expected. see labor unchanged, We of winter for surge. in QX, really the we that in was of XXXX came guidance One, at than anticipated some at incorporated for leave our year, It and ultimately, in but concluded half did front to we that labor reasons. looked volume dynamic improvement

wouldn't 'XX. change expect that to you So

to a is we worth all X of given views. outperformance we're second ultimately concluded our yet really wasn't The us dynamic change And quarter's for enough environment. pieces labor in moving the

in that reason, because the kept is is COVID the So surge for next no improvement the in of winter. where we of better for labor year and result guide it really volume the

the have the labor number in costs you contract Do for it. Got quarter?

labor QX relative was Contract in QX. Yes. about costs to $XX million down

level have remarks, in more drive to to you into of then rate confidence new normal help normalizes. And visibility OI prepared in for to should rates Okay. noted X% to that if trajectory of growth patients you what expect COVID you understand return a us the that COVID normalize? X% restored the you would incidence Can

other as and think we X Sure. think in continue the when made accept staffed our the and quarter, it factors. of on the progress within being and will One is what's progress, control growth, control, is in to our said, Within I'll grab macro essence, patients. we that we've some fourth we one. In categories. make ready to new of we

some upstream is asking, macro, that there sort the questions the quantify. looking On are is like, what which that we question new can't many of patient are still

starts. conclude can't permanent that leads there to change variables nothing that is still Some seen said, we've to us we new that quantify. there That a is

And juncture the after COVID that this so experienced the that would that admits assume revert to best plays is assumption at to historically. X% out, we roughly

just sort with of about respect Got I transition be the done when wanted have switch that cadence patients? what to to complete? And ESA And to Mircera follow-up. do you from it. a transitioning expecting to ask EPOGEN expect far? What so you are you

very cadence The Yes. of throughout carefully and be will done the what's their year, out It physicians own all end obviously the is of decisions patient. by should right as the making roll done with independent the coordination for each to XXXX. we

Deutsche with Our Bank. Pito next caller is Chickering

incident down the what quarterly I sort U.S. to the a but is guess, that can Sticking were adds It's of new sort your XXXX? guys You incidence 'XX. guys help versus of the quantify at of sort you of delayed, for be minutes. few half first of sort XXXX with XXXX? X% in assume pretty throughout count looking

Yes.

I it admission that's That's our seen I'd why picked track why in down. we've big organic really been to the haven't year, of we which call the lower one up It's volume the XXXX out. XXXX to called come is through our we continues half drivers seen And rate persistent. for think basically or kind what guide what is and of saw XXXX. down, So back organic in COVID-XX. of prior growth than what We that of was

in improvement material We to haven't that. any built

said, That revert indirect pre-COVID of we we once Javier the back what saw direct done. are impacts expect as to that to and noted, COVID

Okay.

guess, being of any the mortality. sort quantify for just what So mean, quantify new the actually you in I you the looking just at were of you added had delta the sort press X,XXX the sequentially. release, quarter? us X,XXX can't ads about X,XXX, patients ads color I can with fourth

ads give new a reported number, and to historically I'm hesitant haven't We it now.

a there'll it. of be think I to calculate ways different bunch

So in I'm it it the number. QX. It is that the that answer pick said, for saw tends in There is continues not We seasonality good to look, of sure front I year. depressed. a have up That number. to be in that -- half

obviously, of to so And we're half for looking that in the going XXXX. be front

negative a help X, give guide we math, get direction and mets, there's X. the the if direction. in into I'm really math you a trying Yes, of of basis you X use other you that's going of And variables And to were that new that a a other ad but would negative just midpoint off going but or excess but and mortality to to get you you give high-level the negative say, to plus There's take. points XXXX, if would XX starting I it do to X.X. gives you just going for dynamics, sort it,

a a under XX% XXXX, of as sort looking be sort the just it of prior at XX-plus you sort levels? saw sub-X percent fourth rates average. mortality sort was is would mortality years. guess mortality it are rates of sort that or go XXXX, rate to which during I Okay, of seeing you're years expectation And generally extended. of we COVID, of at sort actually mean, back segue quarter, guess point you I gets a X There's previous to I X in, on to about

pull seeing from number extend starting forward COVID again. a in Just tell back XXXX to customer that is if due to

Yes.

there's new announced X,XXX make and we excess story roughly you if the in just sure to XXXX. at guiding mortality, the people in is X,XXX-or-so roughly like look So to we're numbers just to because XXXX,

think, But And have when aggressively. would don't as we exactly visibility to to I quite looks we again, COVID with down coming revert. should unwinds, is it have it go as normal. -- visibility it back like that would the So it

know on And to roughly excess to now, up, Pito, the what QX catches you to was number help numbers your the data add XXX. based just with get that, updated in these and modeling, we as mortality

You around compare was somewhere XXXX, X,XXX. to that to of want that QX number

down QX, lack would similarly surge. significantly. So the 'XX of the 'XX And QX over we expect QX the QX of come because numbers over

sort of on contract in Okay. turnover. this XXXX? kind Just labor, sort Can then to Has quick And we follow-up. contract labor as at sort was pre-COVID? talk the that One in about you of out nurse the your point? of stabilized think we normalizing contract labor about what of where expand running this are

we what got a you got $XX is $XX below in to run roughly year. a $XX high, last that we Pre-COVID When million. to little told million And million $XXX we was roughly higher we've to million would XXXX. roughly

So put you right so. $XX million or around that would

you So trying through, if to will. halfway get

Instructions]. [Operator

with Our next caller Cowen. is Gary Taylor

questions. A of couple quick

Integrated in much the full Going back patients. patient or guidance what's is built What Kidney to for Care. XXXX? growth? XX,XXX How risk

XX% use is to there, say I'd a good number Gary.

and So growth loss I you're be XX, similar that to to then going patient X saying better mean right? XX% the slightly fairly than is

to numbers think driven that for and in savings in revenue growth million way offset to shared that get is we're roughly I about million were shared XXXX. rough a $XX savings $XX that the patients XXXX that's that with we of for risk going in think that's in by see XXXX, costs the associated that really at we by and improvement

revenue savings way Is so like about the implies right But the think necessarily. that's our achieving results billion understand that That net year revenue of XX% ratable do the accounting of that, you're of spend. far? got you I spend. that's like to but the makes you've $XXX your all that not going sense. numbers, that segment, into And $X.X I this I booked think for know you the million for about

revenue. $XXX then X in revenue of you million wanted full look what -- call gross through wouldn't the shared calculation. It's you a of of gross accounting the which It at do. would the that's of that comply where $XXX plans it, actual medical the a shared spend from take million it, tough And call comes that The $XXX is full other revenue, shared health of is, think management the associated an under This SNPs, net the where buckets. from savings margin in year And calculation associated it really savings I'll revenue number. with what because I'd the, accounting cost million get don't you to the and number, really medical call GAAP. or revenue comes as that call it's the cost not which $XXX savings year think is we We not medical the is accounting by the a kind to with is book I prior year, with financial prior 'XX amount. would you we gross million. similar that it a ratio number, I think if do that only $XX million savings the to divide margin. dollars is book And prior amount.

it. Got

Javier, Following one. talked that. you Last about... it. Appreciate

quick I'm correction. a Gary, just sorry,

slightly I and I said that said think to to What remarks, would prepared the you 'XX, 'XX be would flat with better than worse. that. flat it slightly agreed I in be

up. that wanted So clean I just to

suggest year. guide It or all share likely there. on then are you given you're at second, Okay. it relief in was I part can Fresenius for legislative just CMS change you a go anything be with where guess, sounds TPAs yet? I of 'XX, Javier, is still talking Marietta else legislation or active regulatory just about last I evidence regional to regulatory of that And your just more think to a the making mix I there having any the of you mean, confidence that lot not, commercial but in for would a doing come, like want language want see. is anything that this is and last introduced the any to to

the if Won't patients. our community kidney come work the diligently Gary. or and Thanks groups continue it for protection with as when for or question, But very we Yes. come. our it restore to disability how to speculate will will to

what relates claims we in year it wouldn't not As seen we're significant because seeing, to a are there's we lag any time the of and in have but the payment. uptick, given expect we it

expected. because working we're that as So right that patients. very one produce things that now, is of interested examples congressional it's in with But asked they've going we the they're protecting the champions

that's all have this we So at juncture.

our caller next Research. with Lake Wolfe is And Justin

then Joe, This to I of when reach And outlook that kind speaking X.X the is that share that resume? you resume Austin embedded the wanted on range? like were start the on of ends start repurchase in guess Or needs is off or of And happen in curious sort quick to to the debt to sort to real for guys thinking, to. on Justin. X.X Appreciate do to that what what that both kind leverage the activity? any here. to repo reserve 'XX alternatively, I of might the see of there outlook timing you need on just just question guidance side of

Yes.

have repurchases in next the share in out. The into to we any think for not is We So guidance which range just prudent the a year. OI, things by range largely our translates range that's EBITDA. driven model into way built

range that's there. drives the So what

what getting into path to range the a allocation see of before shift need to repurchases. to to we terms In our we need very look, we back priorities see, capital share back clear

the update an And targeting you that. you XX guys of retention closures, then clinic how that kind then I last follow-up a XX just off terms think kind is in clinic on of point-in-time consolidation. kind to the tracking of guys are of patient quarter. further is the on off Okay. that, of there we And on of 'XX, did guess like kind quarter, of ahead Great. this number

have a per target We se. don't

a that care likely XX to seriously clinics of community imagine, in it's the of can incredibly But lot range of will evaluate looks you that and process XXXX taken take to the care be we that As make will consolidate. patients XX in be sure we taken are it is dimension. a and to the that

that's relates patients, it at of wanting patients part to an see retention DaVita. strong we that and -- retention stay of calculation, that As to goes continue equation to that is of

And bounces little of in me mortality Ares kind last in one guys? bit a just is patients of drivers the IKC just are Great. then around of then sort showing of during year. of there? number attribution is on And for an you like patient terms expectation there one the an wondering what the that follow-up, to I'm up a certain sense,

the cost under management, then and on the for that just are what cadence I through And how expectations med moves XXXX? guess

Yes.

the there's Contracts can in our lives plans on in So the or movement SNF terms number down, nothing the call of move a around I'd the the up of course of over bit. go little out year. lives

I think it, than around quarter rounding was of any this Some more major moves.

medical In under terms of spend management.

year. range I growth with that expect the at think in the somewhere year, of of that $X the lot billion number a for we coming end to beginning next

let Great. And just then squeeze in sorry, here. me X more

You mix guys commercial the MA. in mentioned

what's wondering of that XQ in kind year-end of on 'XX, the then for tracked side. kind Just embedded and where mix just

We don't mix, but on usually of give ended we a ended and year. the we the with where forward guidance XX.X, mix that's year

with Our is America. caller next Bank Kevin Fischbeck of

seasonality. the mentioned missed like It lot it guess line last Is sounds with update any dynamic. a about came quarter, you there Great. treatment you're in there? I saying

normal? plus out have things QX as would to upon Or expected seasonality. QX back in it's played based you how back think I

higher treatments, percentage the missed by just that was on historically we X it had highlighted than trending point. it Kevin,

dynamic We b, take that's then, also and time going to this said fixed. is to, that a a, some understand

really progress any there our in lower dynamic have guidance, the do not we it. in can so And and we significant until understand

it improve in in wasn't line So dramatic sense modeled to that way. it came the any in

it And to your so X% to down X% stable? you're guidance, X% on just stays assuming that in

Correct.

as $XX Is then JV year, of when your to that million breakeven And Medtronic kind quarter minds? we're year -- is? the sounds in that that become does goes, a ratable far Okay. this like whatever as the assuming of rest it

say ratable a I'd reasonable to Yes, estimate. XXXX is

Okay.

safe probably be Or you're right you point, going could core start at X.X% repo the there year of of you share you won't it feel leverage, be next that deleveraging range? first at X.X% is you would in that that growth I allow on, are guess, or back there's to if And so still like to see going before to assume earlier to going half X? to potentially that if pathway kind to repo

I think we'd want we've it's a we but getting the path saying retain speculate, start I'm will, we little want know program early to to a there. optionality repurchase but there. get share certainly we the before not to that got to clear to

Okay. guess X/X the to going I was mix that back did rate guys maybe And then highlight I it growth of XXXX. the you think point, driver for

sounds side a is like the are Given losses point, if I little of issue think go more of that it's around guess, when you and months the where it And that assuming happen, commercial over expectation up. you're of those can guess, pressure? that is that more 'XX there's I going member a still mean, I some to recession color directionally, might at be job where some a sort Is penetration things, you MA and so you pressure provide 'XX then, on than could color, of time?

Well, coverage. COBRA mix segments get course, lasts what maintain recession have and will the and impacted specific that because recession like patients the impact. of they to to long me would very grab shown our and get the private be, It let pay how

their have also exchanges. great had kind in in they've success the addition, In of coverage

a then that time more what our the a it that patients normal that so have be. to it who is tendency make think impact insurance. want would I their keep if to And is resilient. length, recession would And then, private knows of the But assuming recession long-lasting, and shown course,

think MA What XX.X%. quarter. continue a now we open I second every we're little we more now see to your mix, was we of at is have year the tick question, normal On which and ended a into enrollment

over place push to future. XX had the would And into below will it the And you slightly if term, around or if continue so you long think increase. XX speculate I to leveling me a be it to put

All did, just there's cost-cutting I one The else want outlined right. more you everything last charges Great. of played is maybe that And last then anything as maybe that make kind or QX it's sure less as anything more here. mean, initiative accelerate just and just that as that question. you differently did Or this do quarter? far it you as the I envisioned out? or you to specificity

No.

we QX we I dimensions think doing said of anticipated. along stuff Joel The in said would we it all rest than we remains. what are the the well,

with Mok Andrew UBS.

Great.

numbers up. Just to few a questions follow

$XX about DNA quarter? Or that else to higher rate IT there think a million run for clinical something that Is investments? Is increased from D&A about the from XXXX in is that good sequentially. number a the Your new perspective? driving

Yes.

consolidated modeling think expect XXXX, say very for the full year to that I much XXXX. D&A from I'd change don't we

though So quarter ticked on you're up D&A flat full is even year a will in it basis? saying be the fourth what

Yes.

decrease? from clinics? the lower driving what's is And that And

basis, flat anything QX. over see here, to Andrew, focus important to closures costs exclude the I would associated got clinic DNA, be On on it's a relatively the the else. in you'll QX non-GAAP think I think and thing you've with

is Okay. then number time? trend on maybe initiatives. just down update over a we Where Got higher shut should home And tracking clinics, relative goals? to to dialysis you that quick it. And expect long-term that as

the question, Yes. Andrew. Thanks for

increase, connected we in be can so XX.X%, also to they and they we not expected. a but think at thoughtful to go other want closing nephrologists be patients in confident and because we're have centers our essence, important to where having reeducating more being the that up and sure there's home variables still which centers that is mix remote more and tools, making home. we rather that close, and to that so patients home. the Those transitional have home mix be patients consistent clinics feel about essence tracking able and do so We're, than comfortable linkage talked between way have We ended monitoring so centers as Our to that and home will access.

clinics you close? sort retaining on to that think but touched maybe patients any in this leakage are that And you're what ensure on to briefly, you are doing the there? it. I Got exactly point, you of What you that do prevent doing

have deem feel But for have go they patients their general, them, course, their their and can in care. and have choice, the life. nephrologists with we Well, wherever and relationships with they of appropriate they choices comfortable

center And go they we so nephrologist. else a tell staying times, the comfortable sit vast within And when else, options, majority many have then choose and feel to the about that they closure, ones we patient go and telling somewhere but DaVita and DaVita about then to choose. choose the somewhere stay And center. obviously them to their their with with decided

further showing time, questions. at no And am I this

Okay. thank interest your I'll DaVita. optimism year continued you, I Michelle, and the for for in questions and Well, finish for where thank all you ahead. your with started

Although we our COVID from I'm by will stay any continue progress. encouraged away predictions, to recent

outcomes the for long-term As best outlined shareholders. strategic capabilities today, to teammates and pursue and we our our patients, will priorities create to continue

be for all today, the and you Thank joining call well.

This conference concludes call. you. Thank today's

may at go ahead You time. this disconnect and