FTC Approves Final Order Imposing Strict Limits on Future Mergers by Dialysis Service Provider DaVita, Inc.

Following a public comment period, the Federal Trade Commission has approved a final order settling charges that dialysis service provider DaVita, Inc.’s acquisition of the University of Utah Health’s dialysis clinics would reduce competition in vital outpatient dialysis services in the Provo, Utah market.

Under the terms of the final settlement, DaVita is required to divest three Provo-area dialysis clinics to Sanderling Renal Services, Inc. and is prohibited from entering into or enforcing non-compete agreements and other employee restrictions. DaVita is also required to receive prior approval from the FTC before acquiring any new ownership interest in a dialysis clinic anywhere in Utah for a period of ten years.

First announced in October 2021, the complaint alleged that there are only three providers of outpatient dialysis services in the greater Provo, Utah area, and the acquisition would eliminate actual, direct, and substantial competition between dialysis clinics owned by DaVita and dialysis clinics owned by the University of Utah Health, and would tend to create a monopoly.

The Commission vote to approve the final order was 4-0.