Major dialysis provider Fresenius beat its earnings outlook for the third quarter thanks to record growth from its home dialysis business.
Fresenius announced Tuesday that its revenue in the third quarter increased 8% to 4.4 billion euros ($4.8 billion) over the same period in 2018. A major driver has been the implementation of NxStage Medical, which offers home dialysis products.
“From March through September 2019, the growth rate for home dialysis was nine times the rate of in-center dialysis,” Fresenius said in a release Tuesday.
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Fresenius added that it is also investing in training facilities, education and distribution to boost home dialysis.
North American revenue, which is 70% of total revenue for Fresenius, grew 8% in the third quarter to $3.3 billion.
Dialysis care revenue also increased by 8% to $2.7 billion
The dialysis provider expects adjusted revenue to grow between 3%-7% for the rest of 2019.
“The company previously pointed out that adjusted net income is likely to be at the lower end of the range,” the company said in the release. “For 2020, Fresenius Medical Care expects adjusted revenue as well as adjusted net income to grow at a mid to high single-digit rate.”
Fresenius also launched the 4008A, a dialysis machine specifically developed for emerging markets.
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However, Fresenius reported that net income was reduced by $36 million in the third quarter due to a negative effect from the End Stage Renal Disease Seamless Care Organization, a program created to coordinate care across dialysis facilities and providers.
Fresenius’ success in home dialysis comes as the Trump administration is pushing dialysis providers to shift dialysis more to the home.
Back in July, the Centers for Medicare & Medicaid Services announced five new payment models for kidney care. One of the model intends to adjust payments to providers based on their home dialysis and transplantation rates.