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Authors: Jeffrey Pfeffer
Published by: Stanford Business School
Originally published in: 2006
Version: 23 February 2006

Abstract

DaVita, one of the largest operators of kidney dialysis centers in the United States, underwent a remarkable turnaround between 2000 and 2005, a transformation based on building a strong values-driven culture, with an emphasis on fact-based decision making and the theme of ''one for all, all for one'' and an emphasis on company as community. Now the company''s top management faces a number of challenges, including the integration of one of its largest competitors just acquired in a merger, ensuring management succession and not being too chief executive officer-centric, and dealing with the operational issues confronting a company heavily dependent on Medicare and Medicaid reimbursements that do not fully cover the cost of treatment while competing for employees in the health care industry.
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Abstract

DaVita, one of the largest operators of kidney dialysis centers in the United States, underwent a remarkable turnaround between 2000 and 2005, a transformation based on building a strong values-driven culture, with an emphasis on fact-based decision making and the theme of ''one for all, all for one'' and an emphasis on company as community. Now the company''s top management faces a number of challenges, including the integration of one of its largest competitors just acquired in a merger, ensuring management succession and not being too chief executive officer-centric, and dealing with the operational issues confronting a company heavily dependent on Medicare and Medicaid reimbursements that do not fully cover the cost of treatment while competing for employees in the health care industry.

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