FTC Approves Final Order with Kidney Dialysis Chain DaVita, Inc. that Preserves Competition to Provide Outpatient Dialysis Services in New Jersey and greater Dallas area

Following a public comment period, the Federal Trade Commission has approved a final order settling charges that outpatient kidney dialysis chain DaVita, Inc.’s $358 million acquisition of competitor Renal Ventures Management LLC would have been anticompetitive.

First announced in March 2017, the complaint alleged that the acquisition would lead to significant anticompetitive effects in five New Jersey markets (Brick, Clifton, Somerville, Succasunna, and Trenton), and in two Dallas-area markets (Denton and Frisco). The complaint alleged that without the competition in these markets, and with new entry unlikely to be timely or sufficient, the likely result would be reduced quality and higher prices for dialysis patients.

DaVita agreed to divest the seven clinics to PDA-GMF Holdco, LLC, a joint venture between Physicians Dialysis and GMF Capital LLC.

The Commission vote approving the final order was 2-0. (FTC File No. 151 0204; the staff contact is Lisa DeMarchi Sleigh, Bureau of Competition, 202-326-2535.)

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