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 September 30, 2002 and December 31, 2001		1
		Consolidated Statements of Income and Comprehensive Income for the three and nine months ended September 30, 2002 and September 30, 2001		2
		Consolidated Statements of Cash Flows for the nine months ended September 30, 2002 and September 30, 2001		3
		Notes to Condensed Consolidated Financial Statements		4
Item 2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations		13
Item 3.		Quantitative and Qualitative Disclosures About Market Risk		17
Item 4.		Controls and Procedures		17
Risk Factors				18
PART II.    OTHER INFORMATION
Item 1.		Legal Proceedings		23
Item 6.		Exhibits and Reports on Form 8-K		24
Signature				25
Certifications				26

		September 30, 2002				December 31, 2001
ASSETS
Cash and cash equivalents		$	115,361			$	36,711
Accounts receivable, less allowance of $50,165 and $52,475			339,955				333,546
Inventories			21,931				34,901
Other current assets			17,068				9,364
Deferred income taxes			63,741				60,142
Total current assets			558,056				474,664
Property and equipment, net			278,761				252,778
Amortizable intangibles, net			65,635				73,108
Investments in third-party dialysis businesses			3,266				4,346
Other long-term assets			1,831				2,027
Goodwill			860,425				855,760
		$	1,767,974			$	1,662,683
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable		$	77,846			$	74,630
Other current liabilities			106,456				111,164
Accrued compensation and benefits			99,070				88,826
Current portion of long-term debt			8,166				9,034
Income taxes payable			33,473				15,027
Total current liabilities			325,011				298,681
Long-term debt			1,313,847				811,190
Other long-term liabilities			8,034				5,012
Deferred income taxes			49,910				23,441
Minority interests			22,462				20,722
Shareholders’ equity:
Preferred stock ($0.001 par value, 5,000,000 shares authorized; none issued)
Common stock ($0.001 par value, 195,000,000 shares authorized; 88,314,176 and 85,409,037 shares issued)			88				85
Additional paid-in capital			511,627				467,904
Retained earnings			154,526				56,008
Treasury stock, at cost (26,325,677 and 888,700 shares)			(617,531	)			(20,360	)
Total shareholders’ equity			48,710				503,637
		$	1,767,974			$	1,662,683

		Three months ended September 30,								Nine months ended September 30,
		2002				2001				2002				2001
Net operating revenues		$	481,194			$	434,239			$	1,351,536			$	1,221,096
Operating expenses:
Dialysis centers and lab			308,438				277,252				900,624				809,771
General and administrative			37,048				31,150				115,125				95,380
Depreciation and amortization			16,267				26,281				47,770				79,053
Provision for uncollectible accounts			8,117				2,689				19,254				(5,874	)
Impairments and valuation adjustments											(2,390	)
Total operating expenses			369,870				337,372				1,080,383				978,330
Operating income			111,324				96,867				271,153				242,766
Other income, net			1,124				1,856				4,972				4,324
Debt expense			19,967				18,319				52,178				56,758
Minority interests in income of consolidated subsidiaries			(1,911	)			(2,126	)			(7,171	)			(6,852	)
Income before income taxes and extraordinary item			90,570				78,278				216,776				183,480
Income tax expense			36,400				34,000				88,900				79,700
Income before extraordinary item			54,170				44,278				127,876				103,780
Extraordinary (loss) gain related to early extinguishment of debt, net of tax of $19,572 in 2002 and $652 in 2001											(29,358	)			977
Net income		$	54,170			$	44,278			$	98,518			$	104,757
Comprehensive income		$	54,170			$	44,278			$	98,518			$	104,757
Basic earnings per share:
Income before extraordinary item		$	0.84			$	0.52			$	1.69			$	1.25
Extraordinary (loss) gain, net of tax											(0.39	)			0.01
Net income		$	0.84			$	0.52			$	1.30			$	1.26
Diluted earnings per share:
Income before extraordinary item		$	0.72			$	0.47			$	1.51			$	1.15
Extraordinary (loss) gain, net of tax											(0.31	)			0.01
Net income		$	0.72			$	0.47			$	1.20			$	1.16

		Nine months ended September 30,
		2002				2001
Cash flows from operating activities:
Net income		$	98,518			$	104,757
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization			47,770				79,053
Impairments and valuation adjustments			(2,390	)
(Gain) loss on divestitures			(220	)			528
Deferred income taxes			22,574				16,514
Non-cash debt expense			2,375				1,823
Stock options, principally tax benefits			18,035				12,864
Equity investment (income)			(1,465	)			(2,666	)
Minority interests in income of consolidated subsidiaries			7,171				6,852
Extraordinary loss (gain)			29,358				(977	)
Changes in operating assets and liabilities, excluding acquisitions and divestitures: