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Everest Healthcare Services, sixth largest ESRD provider in the United States serving

over 6,400 patients in 68 clinics in 12 states with having other revenue streams also. And it is
good to see the it maintained a dialysis station utilization rate of approximately 80%.

On the other hand, Fresenius Medical Care is the largest service and product provider for
dialysis in the United States and the world with having 62,000 patients in 849 clinics in the
US and 18,000 patients in 241 clinics in Europe, Asia, and Latin America. Everest Healthcare
Services took right decision to merge with Fresenius Medical Care. Answering to question
whether it is right time to merge or not, I would say Everest Healthcare Services should grab
this opportunity by taking action at this time as study says that industry continued to rapidly
consolidate. Large chains have continued to purchase small to medium independent operators
and chains. If they take more time to decide perhaps, they missed this chance and Fresenius
medical care merge with another company. And also, for Everest, the list of other possible
candidates of larger dialysis chains is fairly limited.
And if we talk about purchase price, this is also a vital aspect. Purchase price depends upon
the potential revenue means number of regular patients in the facilities. Following study can
help to reach a correct purchasing price.
Prices range from $10,000 to $40,000 per patient
The average purchase price in 1988, however was estimated at $18,000 to $20,000 per
patient

Prices apparently fell in 1989 to an estimated range of $15,000 to $18,000 per patient
due to changes in federal income tax law

so, by keeping in mind above valuable information, Everest Healthcare Services should
decide a purchase price.

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