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Dialysis company Fresenius Medical Care (FMS - Snapshot Report) and Apollo Medical Holdings, Inc. (ApolloMed, AMEH) revealed an agreement under which ApolloMed subsidiary ApolloMed ACO is joining hands with Fresenius Medical Care. Their purpose will be to provide composite treatment for ApolloMed patients suffering from end stage renal disease (ESRD).

Based in Glendale, California, ApolloMed is a doctor driven composite health care provider. ApolloMed aims to provide top class, cost effective care.

ApolloMed ACO is teaming with Fresenius Medical Care to provide high quality medical attention required by ESRD patients. Patients with ESRD require highly coordinated care as they are likely to suffer from co-morbidities.

The two parties will share the management and cost savings emanating from the agreement. This agreement has been tailored after a 5-year demonstration project conducted by a subsidiary of Fresenius Medical Care with Medicare enrollees on dialysis.  

Fresenius Medical Care is a large provider of products and services for patients undergoing dialysis treatment. The company’s principal competitor in the U.S. is DaVita HealthCare Partners Inc. (DVA - Analyst Report), which provides dialysis services for patients suffering from chronic kidney failure or end stage renal disease. Fresenius Medical Care also competes with Baxter International Inc. (BAX - Analyst Report) in certain niches such as peritoneal dialysis products.

The company continues to register good operating results in the North American as well as overseas markets. The integration of acquisitions is also expected to be accretive to Fresenius Medical Care’s earnings in the near term. However, the contagion of lingering economic problems in Europe remains a matter of concern.

The stock carries a Zacks Rank #4 (Sell). HeartWare International Inc. (HTWR - Snapshot Report) carries a Zacks Rank #2 (Buy) and is expected to do well.

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