Fresenius Medical Care (FMC) reported second quarter 2016 net income of $294 million worldwide, a 22% increase compared to the same quarter in 2015. Net revenue totaled $4,420 million, up 5% compared to the same quarter last year. The 22% net income growth was mainly driven by the strong performance of the North America segment.
In the 2nd quarter, operating income for the North America segment grew 20% to $513 million over the 2nd quarter last year. The operating income margin in the 2nd quarter also improved to 16.2% from 14.5%. This improvement was mainly due to lower costs for health care supplies and a favorable impact from commercial payers, among other factors.
Reported revenue in North America was up 8% to $3,168 million from the same quarter last year. Dialysis Care contributed revenue of $2,374 million for the quarter, up 5% from last year. This growth was driven by an increase in dialysis treatments and increases in revenue per treatment.
US Revenue/Cost Per Dialysis Treatment
In the US, revenue per dialysis treatment stands at $352 for the 2nd quarter, up from $346 in the 2nd quarter of 2015, a growth rate of 1.5%. At the same time, the cost per dialysis treatment has dipped to $282, down from $286 in the 2nd quarter of 2015, a decrease of (1.2%). To summarize, the revenue per treatment went up $6 and the cost per treatment went down $4 in the 2nd quarter of 2016.
FMC Outlook for 2016
Fresenius confirmed its full year outlook for 2016. They expect currency-adjusted revenue growth of 7% to 10% and net income is expected to increase by 15% to 20% over the previous year.
Commercial payers are very important to the profitability of Fresenius. The more FMC profits grow, the more commercial dialysis claim payers need EthiCare Advisors. We specialize in settling dialysis claims. In fact, while FMC profits rose 22% this quarter, EthiCare recorded client savings growth of nearly 50% on dialysis claims compared to our 1st quarter. Don’t contribute to their bottom line; contribute to YOUR bottom line! Contact us to SAVE.
Click here to view all FMC financial results.
To Download: FMC Financial Results 2Q 2016