Dialysis stocks surge after California rejected a limit on dialysis clinic revenues in the midterm elections
- Dialysis stocks are up Wednesday following the midterm election.
- The three big dialysis companies all received a bump. DaVita HealthCare is up 14%, American Renal Associates is up 4%, and Fresenius Medical is up 9%.
- Healthy kidneys help the body filter out impurities from the blood, and dialysis helps replace that function for patients whose kidneys aren't working properly.
- The uptick in stocks in the industry is due to voter rejection of Proposition 8 in California.
- The ballot measure would have limited a dialysis clinic's revenue to 115% of the average cost of dialysis treatment in the state, according to analysts at Leerink.
- If Proposition 8 had passed, DaVita, one of the largest providers of dialysis, would have lost $450 million a year, California Healthline reported.