The heavy half of the Cronic Kidney Failure treatment space consists of the big two, Fresenius Medical and DaVita, and a new entry, Strive Health, as the third. The discussion below is about the apparent strategies of these three.
Strive Health: A Progressive Approach to Kidney Care
Strive Health, a national leader in value-based kidney care, emerged on the scene in 2020 with a bold vision: to revolutionize the standard of kidney care, providing better access to care for individuals across socioeconomic backgrounds​. The company has made impressive strides since its inception, now serving 80,000 chronic kidney disease (CKD) and end-stage kidney disease (ESKD) patients across 30 states and partnering with over 600 nephrology providers across 10 states​.
Strive’s strategy centers on a value-based care approach that prioritizes patient outcomes over the volume of services provided. This approach aligns with the broader healthcare industry’s move towards value-based care, a trend also reflected in the strategies of Fresenius Medical Care and DaVita. Essentially, Strive’s strategy is to build sustainable partnerships with commercial and Medicare Advantage payors, Medicare, health systems, and physicians through flexible value-based payment arrangements, including risk-based programs​.
Strive’s approach has led to a 20% reduction in the total cost of kidney care, a 42% reduction in hospitalizations, and a remarkable 94% overall patient satisfaction with Strive’s staff​.
Fresenius Medical Care: Innovating for the Future of Renal Care
Fresenius Medical Care is another key player in the kidney care space. Its strategy is rooted in four core competencies: innovating products, operating outpatient facilities, standardizing medical procedures, and coordinating patients efficiently​ . In addition, Fresenius is leveraging digitalization, data analytics, and artificial intelligence to transform how it delivers healthcare, focusing on creating sustainable solutions with innovative products and services of the highest quality at a reliable cost​​.
Fresenius’ approach to renal care involves implementing new renal care models, promoting value-based care, integrating CKD and transplantation services, and fostering future innovations. These efforts are all part of their long-term commitment to sustainable development and growth​.
DaVita: A Leader in Dialysis Care
DaVita is a leading provider of kidney care services, including dialysis. It is a company that is evolving care across the entire kidney care continuum—from early detection and management of chronic kidney disease (CKD) to optimal treatment for end-stage kidney disease (ESKD) and kidney transplant. They are working not only to improve their patient’s quality of life but also to transform the entire kidney care industry. They have a strong commitment to ESG (Environmental, Social and Governance) and have set 2025 goals
Comparing Strategies: A Focus on Value-Based Care
Comparing the strategies of these three companies, it’s clear that they all emphasize a shift towards value-based care, though they approach it in distinct ways. Strive Health focuses on technology-enabled care interventions and integration with local providers, while Fresenius Medical Care emphasizes innovation and the application of digital tools in creating new renal care models. Fresenius also seeks to expand value-based care programs to include chronic kidney disease and kidney transplants. DaVita appears to be competing on cost but is moving toward a value-added model.
While it’s clear that all three companies are invested in improving kidney care, they each bring their unique strengths and approaches to the table. It will be interesting to observe how their strategies evolve as they continue to strive for better patient outcomes in the changing landscape of kidney care.
Full disclosure: I own stock in both Fresenius Medical and DaVita. Srive is, at this time, a private company funded by investors such as NEA and CVS Health Ventures, and others. Strive now manages over $2.5 billion of annual medical spending and has grown to 550 employees, according to TechCrunch.
Seems like it is good to have some competition–as along as each company is serious about their focus. Sometimes the answer is in pulling out the best in each???