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Fresenius reports slight drop in North American revenue, increase in product sales in first quarter
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Fresenius Medical Care reported first-quarter 2018 financial results for its U.S. and international operations on May 3, noting it expects to reach net income growth targets but a reduction in revenue from the use of calcimimetic drugs would have an impact on the company’s bottom line.
According to a press release, the company expects revenue growth between 5% and 7% for 2018, down from a forecasted 8% because of the change in Medicare payment for calcimimetics. On January 1, both oral and IV forms of the drug class, used to treat mineral bone disorders, were moved inside the Medicare Part B bundled payment for dialysis patients. Previously, dialysis providers could bill Medicare for the drugs outside the payment bundle under Part D.
“On the back of a solid first quarter, which showed healthy organic growth in our businesses, we are heading toward another record year in our company’s history,” Rice Powell, CEO of Fresenius Medical Care, said in the release. “While managing the shift of the calcimimetic drugs into our clinical operations in the United States, we achieved good organic revenue growth in our dialysis services business and strong organic revenue growth in our products business. This provides a solid basis to deliver on our growth targets for this year.”
The company announced the revenue growth adjustment last month, along with its plans to sell its controlling interest in Sound Inpatient Physicians Holdings LLC to Summit Partners for $2.15 billion.
Overall, Fresenius North America revenue, which represents about 70% of total company revenue, was down by 5% in the first quarter. Dialysis care revenue increased by 5%. Same-market treatments grew by 2%, organic revenue per treatment by 2% and acquisitions contributed 1%. Revenue from health care products increased by 6%.
As of the end of March, the company was treating 197,339 patients at its 2,419 clinics in North America. Both numbers increased by 4%.
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