of this annual report on form 10-k. we base our forward-looking statements on information currently available to us , and we undertake no obligation to update or revise any forward-looking statements , whether as a result of changes in underlying factors , new information , future events or otherwise . the following should be read in conjunction with our consolidated financial statements and item 1. business . 76 davita healthcare partners inc. overview with our recent acquisition of hcp on november 1 , 2012 , we believe the company is well positioned to capitalize on anticipated trends in u.s. healthcare , including our continued growth opportunities in dialysis care services as well as growth in managed healthcare services , especially to the medicare-eligible population . as a result of the acquisition , the company now primarily operates two major lines of business and , to a lesser extent , various other ancillary services and strategic initiatives , which includes our international dialysis operations . our largest line of business is our u.s. dialysis and related lab services business , which is a leading provider of kidney dialysis services in the u.s. for patients suffering from chronic kidney failure , also known as esrd . our other major line of business is hcp , which is a patient- and physician-focused integrated health care delivery and management company with nearly three decades of providing coordinated , outcomes-based medical care in a cost-effective manner . on november 1 , 2012 we completed our acquisition of hcp pursuant to an agreement and plan of merger dated may 20 , 2012 , whereby hcp became a wholly-owned subsidiary of the company . hcp is one of the country 's largest operators of medical groups and physician networks generating approximately $ 2.4 billion in annual revenues and approximately $ 488 million in operating income for the year ended december 31 , 2011. the operating results of hcp are included in our consolidated financial results from november 1 , 2012. the total consideration paid at closing for all of the outstanding common units of hcp was approximately $ 4.70 billion , which consisted of $ 3.64 billion in cash , net of cash acquired , and 9,380,312 shares of our common stock valued at approximately $ 1.06 billion . the total acquisition consideration is subject to a post-closing working capital adjustment . the acquisition agreement also provides that as further consideration , we will pay the common unit holders of hcp a total of up to $ 275 million in cash if certain performance targets are achieved by hcp in 2012 and 2013. in conjunction with the acquisition , we amended our credit agreement to allow for additional borrowings of $ 3.0 billion and also issued new senior notes for $ 1.25 billion , all of which was used to finance the acquisition , pay off a portion of our and hcp 's existing debt , and to pay fees and expenses . our overall financial performance was strong for 2012 and was characterized by strong treatment volume growth , primarily from acquisitions and non-acquired growth rates and by productivity improvements and cost control initiatives in our dialysis business . the improvements were primarily the result of decreased operating costs per treatment due to a decline in the utilization of physician-prescribed pharmaceuticals due to continued evolution of clinical practices and physicians responding to the new fda label for epo . some of our major accomplishments and financial operating performance indicators in 2012 and year over year were as follows : superior clinical outcomeswe provided our best clinical outcomes for the thirteenth straight year ; the acquisition of hcp generated incremental operating income of $ 67 million in 2012 ; consolidated net revenue growth of approximately 21.6 % of which 12.7 % is related to our u.s. dialysis operations ; an increase of approximately 12.5 % in the overall number of treatments that we provided ; normalized non-acquired treatment growth of 4.8 % ; consolidated operating income growth of approximately 12.3 % , which includes the impact of the legal settlement and related expenses and transaction expenses associated with the acquisition of hcp . excluding these items adjusted consolidated operating income would have increased by 22.4 % ; and strong operating cash flows of $ 1,101 million . 77 however , we believe that 2013 will continue to be challenging as we undertake initiatives to mitigate the planned 2 % reduction in our medicare reimbursement rates that are scheduled to take effect on march 1 , 2013 as a result of government sequestration and the risks and challenges associated with our entry into our new line of business , as a result of the acquisition of hcp . in addition , congress could also make significant changes to medicare and medicaid reimbursement rates and , along with the utilization of physician-prescribed pharmaceuticals and pharmaceutical cost may have a significant impact on our operating results . we also remain committed to our international expansion plans that will continue to require a significant investment in 2013. in addition , if the percentage of our dialysis patients with commercial payors continues to deteriorate , our operating results could be adversely affected . following is a summary of consolidated operating results for reference in the discussion that follows . the operating results of hcp are included in our operating results effective november 1 , 2012. replace_table_token_7_th 78 the following table summarizes consolidated net revenues : replace_table_token_8_th the following table summarizes consolidated operating income and adjusted consolidated operating income : replace_table_token_9_th ( 1 ) for the year ended december 31 , 2012 , we have excluded an $ 86 million legal settlement and related expenses and $ 31 million of transaction expenses associated with the acquisition of hcp from operating expenses and operating income . these are non-gaap measures and are not intended as substitutes for the gaap equivalent measures . story_separator_special_tag in addition , under the original esrd pps statute and regulations , beginning january 1 , 2014 , certain oral-only esrd drugs ( currently paid separately to pharmacies under medicare part d ) would have been included in 83 the esrd bundled payment to dialysis facilities . under the american taxpayer relief act of 2012 , the inclusion of oral-only medications in the bundled rate will be delayed until january 1 , 2016. the act also requires cms to monitor the bone and mineral metabolism of esrd patients along with the case-mix adjustments made under the esrd pps . inadequate pricing could have a significant negative financial impact on our dialysis facilities given the volume and value of these drugs . we expect to continue experiencing increases in operating costs that are subject to inflation , such as labor and supply costs , regardless of whether there is a compensating inflation-based increase in medicare payment rates or in payments under the bundled payment rate system . dialysis payment rates from commercial payors can vary and a major portion of our commercial rates are set at contracted amounts with payors and are subject to intense negotiation pressure . our commercial payment rates also include payments for out-of-network patients that on average are higher than our in-network contract rates . in 2012 , we were successful in increasing some of our commercial payment rates which contributed to an increase in our average dialysis revenue per treatment . in 2012 , we continued to enter into some commercial contracts covering certain patients that will primarily pay us a single bundled payment rate for all dialysis services provided to these patients . we are continuously in the process of negotiating agreements with our commercial payors , and payors are aggressive in their negotiations . if our negotiations result in overall commercial rate reductions in excess of overall commercial rate increases , this would have a material adverse effect on our operating results . in addition , if there is an increase in job losses in the u.s. as a result of current economic conditions , or depending upon changes to the healthcare regulatory system , we could experience a decrease in the number of patients covered under commercial plans . approximately 5 % of our dialysis and related lab services revenues for the year ended december 31 , 2012 , were from physician-prescribed pharmaceuticals that are separately billable , with epo accounting for approximately 3 % of our dialysis and related lab services revenues . the impact of physician-prescribed pharmaceuticals on our overall revenues that are separately billable in 2012 and 2011 has significantly decreased from prior years primarily as a result of medicare 's single bundled payment system , as well as some additional commercial contracts that pay us a single bundled payment rate . our operating performance with respect to dialysis services billing and collection can also be a significant factor in the average dialysis and related lab services revenue per treatment we realize . over the past several years we have invested heavily in upgrades to our systems and internal processes that we believe have helped improve our operating performance and reduced our regulatory compliance risks and we expect to continue to improve these systems and processes . in 2012 , we continued to upgrade our information technology systems and implemented process changes . we will continue to upgrade our systems and modify our processes in 2013 to improve our ability to capture the necessary patient characteristics , co-morbidities and certain other factors under medicare 's bundled payment system . we believe this will potentially enable us to capture additional reimbursement amounts from medicare and enhance our overall billing and collection performance . however , as we continue to make upgrades to our systems and processes , or as payors change their systems and requirements , we could experience a negative impact to our cash collection performance which would affect our dialysis and related lab services revenue per treatment . our dialysis and related lab services revenue recognition involves significant estimation risks . our estimates are developed based on the best information available to us and our best judgment as to the reasonably assured collectability of our billings as of the reporting date based upon our actual historical collection experience . changes in estimates are reflected in the then-current period financial statements based upon on-going actual experience trends , or subsequent settlements and realizations depending on the nature and predictability of the estimates and contingencies . our annual average dialysis and related lab services revenue per treatment was approximately $ 332 , $ 330 and $ 337 for 2012 , 2011 and 2010 , respectively . in 2012 , the average dialysis and related lab services revenue per treatment increased by approximately $ 2 per treatment primarily due to an increase in our medicare 84 reimbursements and an increase in some of our commercial payment rates , partially offset by a decline in the commercial payor mix , and a decline in the intensities of physician-prescribed pharmaceuticals . in 2011 , the average dialysis and related lab services revenue per treatment decreased by approximately $ 7 per treatment primarily due to a decline in our medicare reimbursements as a result of operating in the new single bundled payment system , a decline in the commercial payor mix , and a decline in the intensities of physician-prescribed pharmaceuticals , partially offset by an increase in some of our commercial payment rates . our average dialysis and related lab services revenue per treatment can be significantly impacted by several major factors , including our commercial payment rates ; government payment policies regarding reimbursement amounts for dialysis treatments and pharmaceuticals under medicare 's bundled payment rate system , including our ability to capture certain patient characteristics ; changes in the mix of government and commercial patients ; and changes in the mix and intensities of physician-prescribed pharmaceuticals that are billed separately . the principal

available liquidity . as of december 31 , 2012 , our cash balance was $ 534 million and we had an undrawn revolving line of credit under our senior secured credit facilities totaling $ 350 million , of which approximately $ 115 million was committed for outstanding letters of credit . in addition , we had an undrawn revolving line of credit of approximately $ 16 million of which $ 1 million was committed for outstanding letter of credit related to hcp . we believe that we will have sufficient liquidity , operating cash flows and access to borrowings to fund our scheduled debt service and other obligations for the foreseeable future . our primary sources of liquidity are cash from operations and cash from borrowings . cash flow from operations during 2012 amounted to $ 1,101 million , compared with $ 1,180 million for 2011. the decrease in our operating cash flows in 2012 as compared to 2011 was primarily due to an increase in income tax payments and the timing of other working capital items , partially offset by an increase in our cash collections from accounts that are less than six months old . cash flow from operations in 2012 included cash interest payments of approximately $ 258 million and cash tax payments of $ 332 million . cash flow from operations in 2011 included cash interest payments of approximately $ 236 million and cash tax payments of $ 146 million . non-operating cash outflows in 2012 included $ 550 million for capital asset expenditures , including $ 278 million for new center developments and relocations , and $ 272 million for maintenance and information technology . we also spent an additional $ 4,294 million for acquisitions . during 2012 , we also received $ 22 million from the maturity and sale of investments . however , some of these proceeds were either used to repurchase other investments or was used to fund distributions from our deferred compensation plans . in addition , during 2012 , we received $ 69 million associated with stock option exercises and other share issuances and the related excess tax benefits .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```available liquidity . as of december 31 , 2012 , our cash balance was $ 534 million and we had an undrawn revolving line of credit under our senior secured credit facilities totaling $ 350 million , of which approximately $ 115 million was committed for outstanding letters of credit . in addition , we had an undrawn revolving line of credit of approximately $ 16 million of which $ 1 million was committed for outstanding letter of credit related to hcp . we believe that we will have sufficient liquidity , operating cash flows and access to borrowings to fund our scheduled debt service and other obligations for the foreseeable future . our primary sources of liquidity are cash from operations and cash from borrowings . cash flow from operations during 2012 amounted to $ 1,101 million , compared with $ 1,180 million for 2011. the decrease in our operating cash flows in 2012 as compared to 2011 was primarily due to an increase in income tax payments and the timing of other working capital items , partially offset by an increase in our cash collections from accounts that are less than six months old . cash flow from operations in 2012 included cash interest payments of approximately $ 258 million and cash tax payments of $ 332 million . cash flow from operations in 2011 included cash interest payments of approximately $ 236 million and cash tax payments of $ 146 million . non-operating cash outflows in 2012 included $ 550 million for capital asset expenditures , including $ 278 million for new center developments and relocations , and $ 272 million for maintenance and information technology . we also spent an additional $ 4,294 million for acquisitions . during 2012 , we also received $ 22 million from the maturity and sale of investments . however , some of these proceeds were either used to repurchase other investments or was used to fund distributions from our deferred compensation plans . in addition , during 2012 , we received $ 69 million associated with stock option exercises and other share issuances and the related excess tax benefits .
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 Suspicious Activity Report : of this annual report on form 10-k. we base our forward-looking statements on information currently available to us , and we undertake no obligation to update or revise any forward-looking statements , whether as a result of changes in underlying factors , new information , future events or otherwise . the following should be read in conjunction with our consolidated financial statements and item 1. business . 76 davita healthcare partners inc. overview with our recent acquisition of hcp on november 1 , 2012 , we believe the company is well positioned to capitalize on anticipated trends in u.s. healthcare , including our continued growth opportunities in dialysis care services as well as growth in managed healthcare services , especially to the medicare-eligible population . as a result of the acquisition , the company now primarily operates two major lines of business and , to a lesser extent , various other ancillary services and strategic initiatives , which includes our international dialysis operations . our largest line of business is our u.s. dialysis and related lab services business , which is a leading provider of kidney dialysis services in the u.s. for patients suffering from chronic kidney failure , also known as esrd . our other major line of business is hcp , which is a patient- and physician-focused integrated health care delivery and management company with nearly three decades of providing coordinated , outcomes-based medical care in a cost-effective manner . on november 1 , 2012 we completed our acquisition of hcp pursuant to an agreement and plan of merger dated may 20 , 2012 , whereby hcp became a wholly-owned subsidiary of the company . hcp is one of the country 's largest operators of medical groups and physician networks generating approximately $ 2.4 billion in annual revenues and approximately $ 488 million in operating income for the year ended december 31 , 2011. the operating results of hcp are included in our consolidated financial results from november 1 , 2012. the total consideration paid at closing for all of the outstanding common units of hcp was approximately $ 4.70 billion , which consisted of $ 3.64 billion in cash , net of cash acquired , and 9,380,312 shares of our common stock valued at approximately $ 1.06 billion . the total acquisition consideration is subject to a post-closing working capital adjustment . the acquisition agreement also provides that as further consideration , we will pay the common unit holders of hcp a total of up to $ 275 million in cash if certain performance targets are achieved by hcp in 2012 and 2013. in conjunction with the acquisition , we amended our credit agreement to allow for additional borrowings of $ 3.0 billion and also issued new senior notes for $ 1.25 billion , all of which was used to finance the acquisition , pay off a portion of our and hcp 's existing debt , and to pay fees and expenses . our overall financial performance was strong for 2012 and was characterized by strong treatment volume growth , primarily from acquisitions and non-acquired growth rates and by productivity improvements and cost control initiatives in our dialysis business . the improvements were primarily the result of decreased operating costs per treatment due to a decline in the utilization of physician-prescribed pharmaceuticals due to continued evolution of clinical practices and physicians responding to the new fda label for epo . some of our major accomplishments and financial operating performance indicators in 2012 and year over year were as follows : superior clinical outcomeswe provided our best clinical outcomes for the thirteenth straight year ; the acquisition of hcp generated incremental operating income of $ 67 million in 2012 ; consolidated net revenue growth of approximately 21.6 % of which 12.7 % is related to our u.s. dialysis operations ; an increase of approximately 12.5 % in the overall number of treatments that we provided ; normalized non-acquired treatment growth of 4.8 % ; consolidated operating income growth of approximately 12.3 % , which includes the impact of the legal settlement and related expenses and transaction expenses associated with the acquisition of hcp . excluding these items adjusted consolidated operating income would have increased by 22.4 % ; and strong operating cash flows of $ 1,101 million . 77 however , we believe that 2013 will continue to be challenging as we undertake initiatives to mitigate the planned 2 % reduction in our medicare reimbursement rates that are scheduled to take effect on march 1 , 2013 as a result of government sequestration and the risks and challenges associated with our entry into our new line of business , as a result of the acquisition of hcp . in addition , congress could also make significant changes to medicare and medicaid reimbursement rates and , along with the utilization of physician-prescribed pharmaceuticals and pharmaceutical cost may have a significant impact on our operating results . we also remain committed to our international expansion plans that will continue to require a significant investment in 2013. in addition , if the percentage of our dialysis patients with commercial payors continues to deteriorate , our operating results could be adversely affected . following is a summary of consolidated operating results for reference in the discussion that follows . the operating results of hcp are included in our operating results effective november 1 , 2012. replace_table_token_7_th 78 the following table summarizes consolidated net revenues : replace_table_token_8_th the following table summarizes consolidated operating income and adjusted consolidated operating income : replace_table_token_9_th ( 1 ) for the year ended december 31 , 2012 , we have excluded an $ 86 million legal settlement and related expenses and $ 31 million of transaction expenses associated with the acquisition of hcp from operating expenses and operating income . these are non-gaap measures and are not intended as substitutes for the gaap equivalent measures . story_separator_special_tag in addition , under the original esrd pps statute and regulations , beginning january 1 , 2014 , certain oral-only esrd drugs ( currently paid separately to pharmacies under medicare part d ) would have been included in 83 the esrd bundled payment to dialysis facilities . under the american taxpayer relief act of 2012 , the inclusion of oral-only medications in the bundled rate will be delayed until january 1 , 2016. the act also requires cms to monitor the bone and mineral metabolism of esrd patients along with the case-mix adjustments made under the esrd pps . inadequate pricing could have a significant negative financial impact on our dialysis facilities given the volume and value of these drugs . we expect to continue experiencing increases in operating costs that are subject to inflation , such as labor and supply costs , regardless of whether there is a compensating inflation-based increase in medicare payment rates or in payments under the bundled payment rate system . dialysis payment rates from commercial payors can vary and a major portion of our commercial rates are set at contracted amounts with payors and are subject to intense negotiation pressure . our commercial payment rates also include payments for out-of-network patients that on average are higher than our in-network contract rates . in 2012 , we were successful in increasing some of our commercial payment rates which contributed to an increase in our average dialysis revenue per treatment . in 2012 , we continued to enter into some commercial contracts covering certain patients that will primarily pay us a single bundled payment rate for all dialysis services provided to these patients . we are continuously in the process of negotiating agreements with our commercial payors , and payors are aggressive in their negotiations . if our negotiations result in overall commercial rate reductions in excess of overall commercial rate increases , this would have a material adverse effect on our operating results . in addition , if there is an increase in job losses in the u.s. as a result of current economic conditions , or depending upon changes to the healthcare regulatory system , we could experience a decrease in the number of patients covered under commercial plans . approximately 5 % of our dialysis and related lab services revenues for the year ended december 31 , 2012 , were from physician-prescribed pharmaceuticals that are separately billable , with epo accounting for approximately 3 % of our dialysis and related lab services revenues . the impact of physician-prescribed pharmaceuticals on our overall revenues that are separately billable in 2012 and 2011 has significantly decreased from prior years primarily as a result of medicare 's single bundled payment system , as well as some additional commercial contracts that pay us a single bundled payment rate . our operating performance with respect to dialysis services billing and collection can also be a significant factor in the average dialysis and related lab services revenue per treatment we realize . over the past several years we have invested heavily in upgrades to our systems and internal processes that we believe have helped improve our operating performance and reduced our regulatory compliance risks and we expect to continue to improve these systems and processes . in 2012 , we continued to upgrade our information technology systems and implemented process changes . we will continue to upgrade our systems and modify our processes in 2013 to improve our ability to capture the necessary patient characteristics , co-morbidities and certain other factors under medicare 's bundled payment system . we believe this will potentially enable us to capture additional reimbursement amounts from medicare and enhance our overall billing and collection performance . however , as we continue to make upgrades to our systems and processes , or as payors change their systems and requirements , we could experience a negative impact to our cash collection performance which would affect our dialysis and related lab services revenue per treatment . our dialysis and related lab services revenue recognition involves significant estimation risks . our estimates are developed based on the best information available to us and our best judgment as to the reasonably assured collectability of our billings as of the reporting date based upon our actual historical collection experience . changes in estimates are reflected in the then-current period financial statements based upon on-going actual experience trends , or subsequent settlements and realizations depending on the nature and predictability of the estimates and contingencies . our annual average dialysis and related lab services revenue per treatment was approximately $ 332 , $ 330 and $ 337 for 2012 , 2011 and 2010 , respectively . in 2012 , the average dialysis and related lab services revenue per treatment increased by approximately $ 2 per treatment primarily due to an increase in our medicare 84 reimbursements and an increase in some of our commercial payment rates , partially offset by a decline in the commercial payor mix , and a decline in the intensities of physician-prescribed pharmaceuticals . in 2011 , the average dialysis and related lab services revenue per treatment decreased by approximately $ 7 per treatment primarily due to a decline in our medicare reimbursements as a result of operating in the new single bundled payment system , a decline in the commercial payor mix , and a decline in the intensities of physician-prescribed pharmaceuticals , partially offset by an increase in some of our commercial payment rates . our average dialysis and related lab services revenue per treatment can be significantly impacted by several major factors , including our commercial payment rates ; government payment policies regarding reimbursement amounts for dialysis treatments and pharmaceuticals under medicare 's bundled payment rate system , including our ability to capture certain patient characteristics ; changes in the mix of government and commercial patients ; and changes in the mix and intensities of physician-prescribed pharmaceuticals that are billed separately . the principal

