The Federal Trade Commission has launched an investigation into DaVita and Fresenius Medical Care, Politico reported July 13.
The investigation is looking into allegations that the dialysis providers are suppressing competition by requiring medical directors to sign aggressive noncompete agreements, sources told the news outlet. The agreements allegedly bar nephrologists from being employed in similar work settings within the same geographic area, including in a patient's home.
The FTC investigation will assess whether the employment restrictions in the noncompete agreements enable DaVita and Fresenius to amass a monopoly on the dialysis market. According to Politico, the providers operate at least 70% of the outpatient dialysis clinics in the U.S.
"We are cooperating with the commission staff to answer their questions and demonstrate the advantages of our structure in serving the kidney care community," DaVita spokesperson Karen Modlin told Politico. "We are confident the analysis will show that we have enhanced competition and that our practices promote valuable investments for the betterment of physicians, clinic staff, and patients."
The FTC and Fresenius declined comment to Politico.