Affiliated Dialysis Centers to purchase nursing home dialysis business in Chicago

Nov 3 2009

Affiliated Dialysis Centers, LLC (“ADC”), an independent dialysis provider based in Illinois, today announced that a definitive agreement has been reached to purchase a nursing home dialysis business in the Chicago market. When the purchase of the 14 locations serving nearly 200 patients are fully integrated into its existing nursing home dialysis program, ADC will become the premier provider of nursing home dialysis in Illinois. The purchase closed on November 1, 2009. Other terms have not been disclosed.

Mr. Steven Bucher, ADC’s Chief Executive Officer, stated, “We have made a unique and focused commitment to this market to provide dialysis to a very vulnerable patient population in a new and different delivery alternative. Home dialysis is the core of our business and this acquisition is an important milestone for us to greatly expand our business footprint. Through our dedicated employees we will use this opportunity, now as an industry leader, to show the way in cost- effectively meeting the needs of dialysis patients who may require nursing home care.”

Mr. Curt Anliker, ADC’s Chief Operating Officer, commented that home dialysis has been a growing industry trend within the dialysis industry over the last few years with the advent of new technologies and the development of viable nursing home dialysis business models. Home dialysis performed in nursing homes have substantial cost savings and benefits opportunities for both payers and patients including shortened hospital stays, quicker rehabilitation, and elimination of transportation costs to outpatient dialysis centers. Additionally, some patients such as those dependent on ventilators are able to be discharged from higher-cost hospital settings and treated in nursing home environments. Nursing home dialysis patients also generally experience an improvement in the quality of life by avoiding entire days consumed with transportation to and from and treatment in outpatient dialysis clinics three times per week.

Mr. Scott Vavrinchik, ADC’s Executive Director, further commented that the Chicago, Illinois market is the epicenter of nursing home dialysis in the country with dozens of large skilled nursing facilities offering the service. According to most recent figures by The U.S. Renal Data System (USRDS), nearly 17% of patients treated with home hemodialysis in 2007 lived in Illinois. In the 2009 Annual Data Report Atlas issued by USRDS, Illinois led all states in the incidence rate of home dialysis patients from 2005-2007 in accounting for 31% of all incidents.