Pharmaceutical companies before stock markets opened Tuesday, analysts worry about the potential of medical insurance payment cuts dialysis service providers may face sank.
Medicare and medicaid services centre on Monday proposed a net 9.4% medical interest rate cuts and other services, such as davita for operators. This at least three times worse than expected, said John ransom, an analyst at Raymond James, may hurt nearly $2, up more than 20%, next year's earnings per share. He he davita downgrades to "synchronize" from "outperform the market".
FactSet research analysts' estimates, in 2014 earnings of $7.89 per share.
Medicare is a federally funded program for the elderly and the disabled to provide health insurance. Based in Denver, davita dialysis patients with chronic renal failure and end-stage kidney disease to provide services. It runs nearly 2000 outpatient dialysis centers, service around 156000 patients.
Final rates is expected in October, the segmentation stage may associate in a few years, this may soften the blow, ransom said in a research report.
But DaVita stake can support by last month announced on Tuesday, warren buffett's Berkshire hathaway company agreed to buy 25% of the shares in the company, said Gary Taylor, an analyst with citigroup.
Davita shares fell 6.7%, or $8.10 to $113.05 in pre-market trading on Tuesday. This year, the company's share price has risen by nearly 10%.
Beauty fresenius medical AG shares also fell 8.7%, or $3.10 to $32.40 before markets open for Tuesday. Kidney dialysis in the United States, the German company to provide products and services



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