Leading Strategies Change at Davita

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Project: Leading Strategies change at DaVita:
The Integration of the Gambro Acquisition Course: MGT 215
Submitted: 7thDecember, 2011

Acknowledgement ………………………………………………7 Introduction………………………………………………………..8 Synopsis…………………………………………………………9-20 Conclusion…………………………………………………………...23 Bibliography………………………………………………………….24

Acknowledgement
I would like to thank God for the strength he gave me to do this course. It was a challenge but through it all he brought me to the end of twelve weeks of studies. I would like to thank Mr. Veron Johnson for the patience and time he took to impart his knowledge to me. Thanks to everyone who assisted in any way.

Introduction
DaVita Inc., a FORTUNE 500 company, is a leading provider of kidney care in the United States, delivering dialysis services to patients with chronic kidney failure and end stage renal disease. DaVita strives to improve patients’ quality of life innovating clinical care, and by offering integrated treatment plans, personalized care teams and convenient health-management services. As of September 30, 2011, DaVita operated or provided administrative services at 1,777 dialysis facilities, serving approximately 138,000 patients. DaVita supports numerous programs dedicated to creating positive, sustainable change in communities around the world. DaVita Medical Mission Statement:

"To be the Provider, Partner and Employer of Choice
We are becoming the greatest dialysis company the world has ever seen through our commitment DaVita Medical Mission Statement: "To be the Provider, Partner and Employer of Choice
We are becoming the greatest dialysis company the world has ever seen through our commitment to upholding our Mission and Values every day, in everything we our Mission and Values every day, in DaVita Medical Mission Statement: "To be the Provider, Partner and Employer of Choice

We are becoming the greatest dialysis company the world has ever seen through our commitment to upholding our Mission and Values every day, in everything we wed"

Synopsis
Total Renal Care (TRC) a company founded by Victor Chatiel in 1994, offered renal services. One of his strategies was to apply strict business principles and reap rewards upon entering the traditionally non-profit domain of Kidney Dialysis centers. He focused on growth through acquisition through the 1990’s. Unfortunately, chatiel and his team failed to integrate their acquisition leading to some operational incoherence. Firstly, there was no uniformity to a critical patient data form used to record and monitor patient care during dialysis. Secondly, there was little standardization in reporting work methods across centers, this absence made routine management activities, such as transferring personnel and patient across, much more difficult if not impossible. Thirdly, cash flow issues created serious problems like operational weakness in insurance reimbursements – a critical problem for a company whose revenue was entirely dependent on it. Insurers and government would frequently question charges and demand additional documentation. They would occasionally unilaterally reduce the reimbursement amount and delay payment until they received answers to queries and requested documentation. Finally, senior’s executives paid very little attention to the dialysis centers themselves, which were seen more as an avenue of corporate growth where patient and caregivers were economic units in a bigger financial structure. This headquarters- centric, financially oriented operating culture did not win friends among the health care practioners who worked hard in the field to deliver quality care. In 1999 Total Renal Care (TRC) ran into severe financial difficulties. The board of directors turned to Kent Thiry, who worked at another dialysis center in 1997. Kent Thiry is a Harvard MBA graduate and...
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