The German-based company's earnings came less than two weeks after California Governor Gavin Newsom signed profit regulations targeting the dialysis industry into law.
Fresenius Medical Care (FMC) reported nearly $5 billion in quarterly revenues Tuesday morning, an increase of 9% year-over-year. FMC's profit also rose 17% compared to Q3 2018, reaching $369 million.
FMC's reported significant growth in its home dialysis operations following the acquisition of NxStage Medical Inc., as the company now services approximately 25,000 patients.
According to FMC, the home dialysis growth rate is nine times larger than that of in-center dialysis.
In addition, the company's health care services segment saw its revenue increase by 7% while the health care products segment revenue increased 16%.
Related: Fresenius Posts 3% Revenue Growth, Net Income Falls 74%
C-SUITE PERSPECTIVE:
"Our underlying business continues to develop according to plan and we are working successfully to provide even more patients with ever better and more individualized treatment options," Rice Powell, CEO of Fresenius Medical Care, said in a statement. "In North America we have seen record growth in the number of home dialysis patients supported by the effective roll-out of the NxStage product range. In China we have launched the 4008A, our dialysis machine specially developed for emerging markets. Based on the company’s continuing organic revenue growth and accelerated earnings growth despite the unplanned negative effect of the ESCOs this year, we confirm our outlook for 2019."
The German-based company's earnings came less than two weeks after California Governor Gavin Newsom signed profit regulations targeting the dialysis industry into law.
Newsom said that AB 290 removes financial incentives for dialysis providers to steer patients to certain providers for premium assistance.
Related: California Gov. Newsom Signs Dialysis Regulations Into Law
Fresenius Medical Care NorthAmerica issued a response calling the bill "flawed legislation" that will "drastically impact California's most vulnerable dialysis patients."
"We are also concerned that this law will result in patients only being able to access their life-saving care at hospitals due to lack of insurance coverage, and we will support these patients' transitions to whatever extent possible," the company wrote.
Related: Dialysis Industry Spends Big To Protect Profits
Looking ahead, FMC expects its year-end adjusted revenues to grow between 3% to 7% while its adjusted net income is likely to fall at the lower end of a range between -2% and 2% growth.
Related: Feds Pave The Way To Expand Home Dialysis — But Patients Hit Roadblocks
For complete financial information, review Fresenius Medical Care's filing with the Securities and Exchange Commission.
Jack O'Brien is the Content Team Lead and Finance Editor at HealthLeaders, an HCPro brand.
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