Delaware		51-0354549
(State of incorporation)		(I.R.S. employer identification no.)

				Page No.
		PART I.    FINANCIAL INFORMATION
Item 1.		Condensed Consolidated Financial Statements:
		Consolidated Balance Sheets as of June 30, 2002 and December 31, 2001		1
		Consolidated Statements of Income and Comprehensive Income for the three and six months ended June 30, 2002 and June 30, 2001		2
		Consolidated Statements of Cash Flows for the six months ended June 30, 2002 and June 30, 2001		3
		Notes to Condensed Consolidated Financial Statements		4
Item 2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations		14
Item 3.		Quantitative and Qualitative Disclosures About Market Risk		18
Risk Factors				19
		PART II.    OTHER INFORMATION
Item 1.		Legal Proceedings		23
Item 2.		Changes in Securities and Use of Proceeds		23
Item 4.		Submission of Matters to a Vote of Security Holders		23
Item 6.		Exhibits and Reports on Form 8-K		24
Signature				25

		June 30, 2002				December 31, 2001
ASSETS
Cash and cash equivalents		$	137,020			$	36,711
Accounts receivable, less allowance of $54,765 and $52,475			347,064				333,546
Inventories			31,769				34,901
Other current assets			13,852				9,364
Deferred income taxes			61,607				60,142
Total current assets			591,312				474,664
Property and equipment, net			267,335				252,778
Amortizable intangibles, net			67,987				73,108
Investments in third-party dialysis businesses			3,449				4,346
Other long-term assets			1,876				2,027
Goodwill			852,691				855,760
		$	1,784,650			$	1,662,683
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable		$	77,374			$	74,630
Other liabilities			98,739				111,164
Accrued compensation and benefits			94,880				88,826
Current portion of long-term debt			8,299				9,034
Income taxes payable			11,036				15,027
Total current liabilities			290,328				298,681
Long-term debt			1,316,153				811,190
Other long-term liabilities			6,077				5,012
Deferred income taxes			37,045				23,441
Minority interests			21,613				20,722
Shareholders’ equity:
Preferred stock ($0.001 par value; 5,000,000 shares authorized; none issued or outstanding)
Common stock ($0.001 par value, 195,000,000 shares authorized; 88,033,939 and 85,409,037 shares issued)			88				85
Additional paid-in capital			507,788				467,904
Retained earnings			100,356				56,008
Treasury stock, at cost (20,716,437 and 888,700 shares)			(494,798	)			(20,360	)
Total shareholders’ equity			113,434				503,637
		$	1,784,650			$	1,662,683

		Three months ended June 30,								Six months ended June 30,
		2002				2001				2002				2001
Net operating revenues		$	442,677			$	400,640			$	870,342			$	786,857
Operating expenses:
Dialysis centers and labs			300,552				271,545				592,186				532,519
General and administrative			42,024				32,417				78,077				64,230
Depreciation and amortization			15,698				26,624				31,503				52,772
Provision for uncollectible accounts			5,882				(378	)			11,137				(8,563	)
Impairments and valuation adjustments			(2,390	)							(2,390	)
Total operating expenses			361,766				330,208				710,513				640,958
Operating income			80,911				70,432				159,829				145,899
Other income, net			3,283				1,120				3,848				2,468
Debt expense			17,139				18,715				32,211				38,439
Minority interests in income of consolidated subsidiaries			(2,827	)			(2,269	)			(5,260	)			(4,726	)
Income before income taxes and extraordinary item			64,228				50,568				126,206				105,202
Income tax expense			26,500				22,000				52,500				45,700
Income before extraordinary item			37,728				28,568				73,706				59,502
Extraordinary (loss) gain related to early extinguishment of debt, net of tax of $19,572 in 2002 and $652 in 2001			(29,358	)			977				(29,358	)			977
Net income		$	8,370			$	29,545			$	44,348			$	60,479
Comprehensive income		$	8,370			$	29,545			$	44,348			$	60,479
Basic earnings per share:
Income before extraordinary item		$	0.47			$	0.34			$	0.91			$	0.72
Extraordinary (loss) gain, net of tax			(0.37	)			0.01				(0.36	)			0.01
Net income		$	0.10			$	0.35			$	0.55			$	0.73
Diluted earnings per share:
Income before extraordinary item		$	0.43			$	0.32			$	0.83			$	0.67
Extraordinary (loss) gain, net of tax			(0.30	)			0.01				(0.29	)			0.01
Net income		$	0.13			$	0.33			$	0.54			$	0.68

		Six months ended June 30,
		2002				2001
Cash flows from operating activities:
Net income		$	44,348			$	60,479
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization			31,503				52,772
Impairments and valuation adjustments			(2,390	)
(Gain) loss on divestitures			(462	)			362
Deferred income taxes			11,843				4,469
Non-cash debt expense			1,526				1,155
Stock options, principally tax benefits			16,304				9,931
Equity investment (income)			(960	)			(1,070	)
Minority interests in income of consolidated subsidiaries			5,260				4,726
Extraordinary loss (gain)			29,358