LD
The Federal Trade Commission (FTC) has launched an investigation into whether the nation’s largest dialysis providers, DaVita (NYSE:DVA) and Fresenius Medical Care (NYSE:FMS), are allegedly harming their small competitors, The Politico reported Saturday.
Citing people familiar with the matter, the publication said that part of the probe focuses on how the duo has made it difficult for their contracted physicians to leave for competitors and launch their own practices.
According to the people, the investigation centers on the companies’ business models and is still in the initial stages after starting early this year.
The contracts the companies offer to doctors who function as medical directors in their clinics, are said to include noncompete provisions that ban them from joining their rivals in the same geographic market.
The clauses can be challenging for upstart device companies in the dialysis market, where DaVita (DVA) and Fresenius (FMS) operate alongside MedTech firms such as Outset Medical (OM) and Baxter International (BAX).
“We are cooperating with the commission staff to answer their questions and demonstrate the advantages of our structure in serving the kidney care community,” The Politico reported, quoting DaVita (DVA) spokesperson Karen Modlin. Representatives for its German rival Fresenius (FMS) and the FTC declined to comment.