Government healthcare will destroy American healthcare

[MrsSmith]

Private insurers keep dialysis clinics humming

By Andrew Conte and Luis Fabregas
TRIBUNE-REVIEW
Monday, September 28, 2009

New patients with private insurance supply lifeblood to the $65 billion-a-year dialysis industry.

Fresenius Medical Care, the world's largest dialysis provider, made more than $800 million last year — even though it reported losing money on those patients who receive federal Medicare benefits.

Its top competitor, DaVita, meanwhile, made $374 million last year, and said nearly all its profits came from people who have private insurance.

"We need to identify new patients and, certainly, new patients with insurance," said LeAnne Zumwalt, DaVita's vice president. "That's what allows us to treat all patients. This private subsidy really allows the whole model to work."



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About two-thirds of Fresenius' business comes from the United States, where it spends about $289 per treatment but receives about $250 from Medicare. The agency takes over payments for almost every patient who has been on dialysis longer than 33 months.

That reimbursement schedule transforms patients with private insurance from being profit-drivers to liabilities overnight, as the government takes over their care.

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The government reimbursement rate is less than the cost of the treatment.  Imagine what this will do to healthcare!!