US FTC probing DaVita, Fresenius Medical, Politico reports

The U.S. Federal Trade Commission (FTC) is investigating healthcare providers DaVita and Fresenius Medical Care over allegations that the companies have been illegally thwarting smaller competitors, Politico reported on Saturday, citing three people familiar with the matter.

The investigation, which began earlier in the year and is in the early stages, focuses partly on how difficult the two companies that dominate the U.S. dialysis market have made it for physicians who work in their clinics to start new businesses or leave for their rivals, Politico said.

The FTC is examining the business model of the two companies, and is looking at whether non-compete agreements the companies make doctors sign hampers efforts by competitors who would want to make it easier for patients undergoing dialysis to be treated at home, according to Politico.

Politico said the non-compete agreements that are under investigation concern nephrologists, who specialize in treating Kidney disease.

The FTC, DaVita and Fresenius Medical did not immediately respond to a request for comment on the Politico report.

More than 500,000 people in the United States are on dialysis, a process of mechanically cleaning blood usually done three times a week. Diabetes is the most common cause of kidney failure.

(Reporting by Chandni Shah in Bengaluru; Editing by Mark POtter and Diane Craft)