Shares of DaVita HealthCare Partners (DVA) plummeted by 12.67% on October 30, 2024, after the dialysis services provider reported mixed third-quarter results and warned of mounting cost pressures and policy uncertainties weighing on its outlook.

While DaVita's revenue of $3.26 billion surpassed analysts' expectations, driven by higher average reimbursement rates, the company's adjusted earnings per share (EPS) of $2.59 missed the consensus estimate of $2.73. The earnings miss was primarily attributed to elevated patient care costs resulting from labor cost pressures and higher medical benefits expenses.

Moreover, DaVita's treatment volumes continued to be pressured by elevated patient mortality rates, declining 0.1% year-over-year in the quarter. This ongoing challenge, coupled with the expected $10 million to $20 million impact from hurricane-related supply chain disruptions in the fourth quarter, further clouded the company's near-term outlook.