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U.S. Renal Care, DSI Renal to merge

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U.S. Renal Care, Inc. and DSI Renal announced today they have entered into a definitive merger agreement. Terms of the transaction were not disclosed.

U.S. Renal Care is the third largest dialysis provider in the country, and when combined with DSI, the company will serve approximately 23,000 patients across 33 states and the Territory of Guam.

Currently, Plano, Texas-based U.S. Renal Care operates 198 facilities in 20 states and the Territory of Guam. With headquarters in Nashville, Tenn., DSI currently operates 100 facilities in 22 states.  Moving forward, USRC’s headquarters will remain in Plano, and DSI’s Nashville office will operate as a USRC business office and corporate support center.

The merger is expected to close by the end of the fourth quarter of 2015. Once complete, USRC will operate nearly 300 outpatient clinics, 142 home dialysis programs and 26 acute care hospital contracts throughout the country.

“This merger is important because it will generate significant efficiencies, which will lower the cost of providing dialysis, while expanding access to the highest standards of care for the diverse communities we serve,” said Craig Goguen, President and Chief Executive Officer of DSI Renal. -by Rebecca Zumoff

About the companies

Frazier Healthcare and New Enterprise Associates created DSI in October 2011 with Bob Lefton and Craig Goguen, DSI's Executive Chairman and  CEO, when  it  acquired 31 clinics  from  DaVita Kidney Care  and  the  former  DSI  Renal  Inc. through an Federal Trade Commission-mandated divestiture. Five months later, DSI acquired an additional 54 clinics from Fresenius through a separate FTC-mandated divestiture.

U.S. Renal surpassed Dialysis Clinic Inc. in size this year. According to NN&I's annual dialysis provider ranking, U.S. Renal grew 11.5% between July 2014 and July 2015.