US FTC probing DaVita, Fresenius Medical, Politico reports
Adds more details in paragraph 4, background in paragraph 6
July 13 (Reuters) -The U.S. Federal Trade Commission (FTC) is investigating healthcare providers DaVita DVA.N and Fresenius Medical Care FMEG.DE over allegations that the companies have been illegally thwarting smaller competitors, Politico reported on Saturday, citing three people familiar with the matter.
The investigation, which began earlier in the year and is in the early stages, focuses partly on how difficult the two companies that dominate the U.S. dialysis market have made it for physicians who work in their clinics to start new businesses or leave for their rivals, Politico said.
The FTC is examining the business model of the two companies, and is looking at whether non-compete agreements the companies make doctors sign hampers efforts by competitors who would want to make it easier for patients undergoing dialysis to be treated at home, according to Politico.
Politico said the non-compete agreements that are under investigation concern nephrologists, who specialize in treating Kidney disease.
The FTC, DaVita and Fresenius Medical did not immediately respond to a request for comment on the Politico report.
More than 500,000 people in the United States are on dialysis, a process of mechanically cleaning blood usually done three times a week. Diabetes is the most common cause of kidney failure.
Reporting by Chandni Shah in Bengaluru; Editing by Mark POtter and Diane Craft
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
