Davita Case Study Essay

1. The Dialysis Services Industry has 3 different types of organizations – private organization such as Fresenius Medical (FMC) and DaVita, hospitals or non-profit organizations. Although DaVita leads the industry in Dialysis Outcomes like access, adequacy, nutrition, and vaccinations (which are competing dimensions as well), it lags behind by 1 percent to FMC with regard to market share (35% vs 36%). The hospitals and non-profit organization account for 29 percent of the market. The firms compete on four key success factors namely – improving clinical outcomes, attention to detail, managing financial outcomes, and employee attraction and retention. In addition, the firms also compete on labor utilizations and costs.

2. DaVita’s strategy of Community First, Company is to create societal harmony among all its employees, be it senior management, CEO or the patients. DaVita endorsed this by creating imagery and careful use of language, such as – workers are called citizens, the company is known as a village. Living the saying of, ‘one for all, all for one’, activities such as sharing of information, reward programs, education training (DaVita University) contributed to this feeling of community. This resulted in low attrition rates, more social bonding between employee’s thus improving clinical outcomes and controlling costs. The increase in stock price (from 5.28 to 60.02) from 2000 to 2012 corresponds with the broad strategy of Davita and its success. Challenges that it faced now was whether this culture would transfer to Health Care Partners.

3. To maximize shareholder value, DaVita places emphasis on multiple stakeholders including patients, employees, the healthcare system communities and the working environment. This enables DaVita to decrease employees leaving and increasing morale, by giving more importance to them. This is in line with DaVita’s cultural values.