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Dialysis operator Fresenius Medical Care AG & Co. has sold nine of its Hawaii clinics to Tennessee-based DSI Renal as part of a divestiture order by federal regulators.
DSI, also known as Dialysis Newco Inc., announced its purchase Monday as part of a larger transaction of 54 facilities, which was driven by a U.S. Federal Trade Commission order to preserve competition in Hawaii and other states, following Fresenius’ recent acquisition of Liberty Dialysis Holdings.
The deal marks DSI’s first foray into the Hawaii market. Terms of the sale weren’t disclosed. A DSI spokeswoman didn’t know how many employees would be affected in Hawaii.
"DSI’s intention is to retain to the largest extent possible the teams that are in place," said Angela Novak, a spokeswoman for DSI, a for-profit outpatient dialysis operator.
Fresenius, a German company that is the largest dialysis provider in the world, announced in August a nearly $2 billion deal to purchase 260 Liberty Dialysis clinics nationwide. But the FTC moved to block the consolidated ownership by one operator to prevent a monopoly that could lead to higher prices and reduced patient care. Representatives from Fresenius couldn’t be reached for comment.
There are more than 156,000 Hawaii residents with chronic kidney disease, which could lead to dialysis or kidney transplants, according to the National Kidney Foundation of Hawaii. The state has a higher-than-average rate of chronic kidney disease, with 1 in 7 people affected locally compared with 1 in 9 nationally.
