* Confirms 2021 and medium-term guidance * Outlines cost cutting plans, FMC to follow (Adds details, CEO quotes from call) May 6 (Reuters) - German healthcare group Fresenius reported a smaller than expected fall in quarterly net income on Thursday, helped by government aid for its hospitals and lower mortality among dialysis patients as more received COVID-19 vaccines. The pandemic has had a mixed effect on healthcare groups, as demand for coronavirus-related products and services has come alongside a drop in visits to doctors and a rise in patient deaths. Fresenius, which controls the world’s largest provider of kidney dialysis services and makes COVID-19 treatment dexamethasone, said first-quarter net income fell 2% to 435 million euros ($522 million) on a currency-adjusted basis.