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Kidney Dialysis Centers - Industry Profile
First Research, March 2008, Pages: 10
Covering over 175 industries and updated every 90 days, the First Research Industry Profiles do the heavy lifting for you - saving your sales team valuable research time, enhancing client communications and giving you the competitive edge to win more business.
Easy-to-use and up-to-date, the Industry Profiles provide you with the industry research necessary to stay on top of constant changes in select industries.
The First Research profiles help target your products and services directly to prospects. The Industry Profiles provide the information and understanding you need to engage new prospects during the sales process, deepen customer relationships and strengthen your own bottom line.
Executive Summary
Brief Excerpt from Industry Overview Chapter:
The commercial kidney dialysis industry includes about 3,200 dialysis centers with combined annual revenue of $10 billion. Large companies include Fresenius Medical Care, DaVita, and Diversified Specialty Institutes. The industry has become highly concentrated: the four largest companies operate more than 70 percent of all centers. A typical kidney dialysis center has 20 employees and $3 million of annual revenue.
COMPETITIVE LANDSCAPE
Demand depends on the number of people who suffer from kidney disease. The profitability of individual companies is linked to efficient operations and good marketing. Large companies have economies of scale in administrative costs, which has driven consolidation in the industry. Small operators can compete successfully if they have centers in desirable locations or good relations with doctors who refer patients. The industry is moderately labor-intensive: average annual revenue per worker is about $140,000.
Over 300,000 patients use dialysis centers in the US, a number expected to grow 4 to 5 percent per year. In addition to the 3,200 commercial dialysis centers, about 1,000 are operated by hospitals and non-profit organizations.
PRODUCTS, OPERATIONS & TECHNOLOGY
The industry provides a special treatment called hemodialysis for patients who suffer from end stage renal disease (ESRD). Hemodialysis, the most common form of treatment for ESRD, is not a cure but a blood-filtering process that prolongs life. ERSD patients must undergo dialysis for the rest of their lives. Without dialysis treatment or a kidney transplant, ESRD is a terminal disease. Less than 5 percent ...
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