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Shares of kidney dialysis services company DaVita (NYSE:DVA) were briefly halted on Tuesday after a circuit breaker was triggered following a plunge in the NYSE-listed stock. The decline followed an adverse U.S. Supreme court ruling on dialysis coverage.
DaVita sued Marietta Memorial Hospital in Ohio for treating dialysis providers as out-of-network and reimbursing them at the lowest level rate, according to Bloomberg Law.
DaVita alleged the plan incentivized patients to switch to Medicare to avoid paying higher copays, but the Supreme Court rejected their argument and sided with an Ohio hospital’s employee health plan in a 7-2 decision.
DaVita shares declined over 10% intraday.
