Joint Ventures
DaVita prides itself on being the “Partner of Choice” and is the most experienced joint venture (JV) partner in the industry, with more jointly owned dialysis centers than all other dialysis providers combined. This is primarily due to our unique focus on our physician partners, our integrated clinical and business systems, and the benefits of DaVita's operational and management programs.
JVs align the interests of DaVita® and physicians to create world-class dialysis centers.
There are many advantages for a physician to partner with DaVita. Among them are the ability to share in the risks, rewards and responsibilities of being an owner of a dialysis center. The partners of a JV participate in DaVita’s award-winning teammate development and retention. Partners also have a responsibility to ensure a long-term commitment to quality dialysis services in the area.
JVs are typically structured as Limited Liability Companies (LLCs) and are governed by an Operating Agreement and Management Services Agreement.
- The Operating Agreement is a legal document that outlines the structure of the JVs and discusses various governance issues. It also describes the process behind capital contributions and distributions. Typically, an Operating Agreement will contain a non-compete/non-solicit covenant, as well as various purchase and transfer rights for the partners.
- The Management Services Agreement outlines DaVita’s role as the Contractual Manager of the facility, and describes the various roles and responsibilities that DaVita must perform in this role. Typical services that DaVita provides include accounting, billing and collections, clinical education, compliance oversight, recruiting, payor contracting, purchasing and quality management.
It is important to note that the business purpose of a dialysis JV is to identify a partner with a commitment to creating an outstanding operation, the capability to help do so, and a willingness to create awareness of the center. JV partners are never limited in where they can refer patients, including a competitor’s clinic or center.
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