Dialysis stocks surge after California rejected a limit on dialysis clinic revenues in the midterm elections

Charlotte Hu

Nov 7, 2018, 20:55 IST

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.