DaVita's total dialysis treatment volume for Q4 2020 experienced a per day decline of nearly 1% year-over-year.
DaVita Inc.'s net income for both Q4 and 2020 overall experienced year-over-year declines, according to the latest earnings report released Thursday afternoon.
At the end of Q4, DaVita reported $193 million in net income from continuing operations, down from $242 million during the same period in 2019, and net income of $174 million, down from $245 million in Q4 2019. Similarly, DaVita's net income for 2020 was $774 million, down from $811 at the end of 2019, though its net income from continuing operations rose by $76 million.
Most notably, the Denver-based dialysis company recorded an operating income of $382 million for Q4 2020, down from $463 million in Q4 2019, though its year-end operating income of $1.695 billion marked an improvement of $52 million.
DaVita's total dialysis treatment volume for Q4 2020 experienced a per day decline of nearly 1% year-over-year while normalized non-acquired treatment growth for the quarter was 0.3%.
The company attributed the revenue and cost changes to a number of factors, including the ongoing COVID-19 pandemic. In its press release, DaVita stated that the challenges related to COVID-19 resulted in an estimated net impact on operating income of $60 million.
"Throughout the pandemic, including the recent surge in the number of COVID-19 cases across the United States, our teammates continue to respond with a focus on the health and safety of 240,000 patients receiving high quality, life-sustaining care," Javier Rodriguez, CEO of DaVita, said in a statement. "Over the past six weeks, we have begun providing vaccinations to our front-line caregivers, and we are now beginning the process of providing COVID-19 vaccinations to our patients."
The dialysis provider recorded full year diluted earnings per share from continuing operations of $6.39, up nearly 39% year-over-year.
DaVita's cash flow, specifically operating cash flow, operating cash flow from continuing operations, and free cash flow from continuing operations, all experienced year-over-year declines during the quarter.
For the quarter, DaVita also repurchased over 4.1 million shares for $417 million.
Looking ahead to 2021, DaVita projected adjusted operating income in the range of $1.675 billion to $1.825, adjusted diluted net income from continuing operations per share attributable to the company between $7.75 to $8.75, and free cash flow from continuing operations between $900 million to $1.15 billion.
Still, DaVita added that the pandemic continues to "generate significant risk and uncertainty, and as a result, our future results could vary materially from the guidance provided."
For complete financial information, review DaVita's filing with the Securities and Exchange Commission.
Jack O'Brien is the Content Team Lead and Finance Editor at HealthLeaders, an HCPro brand.
Photo credit: St. Joseph, Missouri / United States of America - March 26 2019: Davita Kidney Care in downtown St. Joseph. - Image / Editorial credit: APN Photography / Shutterstock.com