DaVita (DVA): CMS Rule Puts Revenues At Risk - Susquehanna

Susquehanna analyst, Chris Rigg, reiterated his Neutral rating on shares of DaVita (NYSE: DVA) after the Centers for Medicare and Medicaid Services (CMS) issued an interim final rule that appears to put all third-party premium (TPP) support payments at risk as it relates to dialysis patients.

The interim rule was broad in scope and appears to question whether it is ever best to steer an individual to a private plan if he or she is eligible for Medicaid and/or Medicare. The analyst believes the interim final rule is likely to increase DVA’s operating income at risk to the total of $230 mln previously disclosed by management.

No change to the price target of $60 which represents a 10% decline from yesterday's closing price.

For an analyst ratings summary and ratings history on DaVita click here. For more ratings news on DaVita click here.

Shares of DaVita closed at $66.59 yesterday.

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