Deutsche Bank tells investors in a research note that the Advanced Rate notice for Medicare Advantage, prescription plan sponsors and other interested parties includes a proposed 2025 Centers for Medicare & Medicaid Services rate increase for dialysis clinics of 3.12% and a final rate of 1.76%. The firm estimates that Medicare fee for service is 23% of total revenues for DaVita, and with the law taking place starting October 1 estimates a 25% impact for calendar-year 2024 for the company. The firm, which made no change to its Hold rating or $135 price target, takes the spread to be a loss of (37M) of EBITDA in 2025 for DaVita and estimates a $3.49 impact to the shares.
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