Improving Health, Health Care and Quality of Life

DaVita 2nd Quarter 2009 Results
PRNewswire-FirstCall
EL SEGUNDO, Calif.

DaVita Inc. today announced results for the quarter ended June 30, 2009. Net income attributable to DaVita Inc. for the three and six months ended June 30, 2009 was $105.8 million and $202.0 million, or $1.02 per share and $1.94 per share, respectively. This compares to net income attributable to DaVita Inc. for the three and six months ended June 30, 2008 of $95.0 million and $181.9 million, or $0.90 per share and $1.70 per share, respectively.

  (Logo:  http://www.newscom.com/cgi-bin/prnh/20020729/DAVITALOGO)

  Financial and operating highlights include:
  --  Cash Flow:  For the rolling 12 months ended June 30, 2009 operating
      cash flow was $705 million and free cash flow was $527 million. For
      the three months ended June 30, 2009 operating cash flow was $212
      million and free cash flow was $174 million.
  --  Operating Income:  Operating income for the three and six months ended
      June 30, 2009 was $236 million and $457 million, respectively, as
      compared to $218 million and $424 million, respectively, for the same
      periods of 2008.
  --  Volume:  Total treatments for the second quarter of 2009 were
      4,228,179, or 54,207 treatments per day, representing a per day
      increase of 5.2% over the second quarter of 2008. Non-acquired
      treatment growth in the quarter was 4.5% over the prior year's second
      quarter.
  --  Effective Tax Rate:  Our effective tax rate was 37.1% and 37.2% for
      the three and six months ended June 30, 2009, respectively. This
      effective tax rate is impacted by the amount of third party owners'
      income attributable to non-tax paying entities. The effective tax rate
      attributable to DaVita Inc. was 40.0% and 40.1% for the three and six
      months ended June 30, 2009 which was in the range of our previously
      stated guidance. Our effective tax rate for 2009 is still projected to
      be in the range of 37.0% to 38.0% and our 2009 effective tax rate
      attributable to DaVita Inc. is still projected to be in a range of
      39.5% to 40.5%.

  --  Center Activity:  As of June 30, 2009, we operated or provided
      administrative services at 1,493 outpatient dialysis centers serving
      approximately 116,000 patients, of which 1,464 centers are
      consolidated in our financial statements. During the second quarter of
      2009, we acquired two centers, opened 23 new centers, merged five
      centers and sold two centers.


  Outlook

We are narrowing our operating income guidance for 2009 to be in the range of $900-$930 million. Our operating cash flow guidance remains unchanged at a range of $550-$600 million. These projections and the underlying assumptions involve significant risks and uncertainties, including those described below and actual results may vary significantly from these current projections.

DaVita will be holding a conference call to discuss its results for the second quarter ended June 30, 2009 on August 4, 2009 at 5:00 p.m. Eastern Time. The dial in number is (800) 399-4406. A replay of the conference call will be available on DaVita's official web page, www.davita.com, for the following 30 days.

This release contains forward-looking statements, including statements related to our 2009 operating results and 2009 expected effective tax rate and the expected effective tax rate attributable to DaVita Inc. Factors which could impact future results include the uncertainties associated with governmental regulations, general economic and other market conditions, competition, accounting estimates and the risk factors set forth in our SEC filings, including our Form 10-K for the year ended December 31, 2008 and subsequent quarterly reports on Form 10-Q. The forward-looking statements should be considered in light of these risks and uncertainties.

  These risks and uncertainties include those relating to:
  --  the concentration of profits generated from commercial payor plans,
  --  continued downward pressure on average realized payment rates from
      commercial payors, which may result in the loss of revenue or
      patients,
  --  a reduction in the number of patients under higher-paying commercial
      plans,
  --  a reduction in government payment rates or the structure of payments
      under the Medicare ESRD Program which result in lower reimbursement
      for services we provide to Medicare patients,
  --  changes in pharmaceutical or anemia management practice patterns
      payment policies, or pharmaceutical pricing,
  --  our ability to maintain contracts with physician medical directors,
  --  legal compliance risks, including our continued compliance with
      complex government regulations and compliance with the corporate
      integrity agreement applicable to the dialysis centers acquired from
      Gambro Healthcare and assumed in connection with such acquisition, and

  --  the resolution of ongoing investigations by various federal and state
      governmental agencies.


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.

This release contains non-GAAP financial measures. For reconciliations of these non-GAAP financial measures to their most comparable measure calculated and presented in accordance with GAAP, see the attached reconciliation schedules.

                                   DAVITA INC.
                        CONSOLIDATED STATEMENTS OF INCOME
                                   (unaudited)
                  (dollars in thousands, except per share data)

                            Three months ended         Six months ended
                                 June 30,                  June 30,
                                 --------                  --------
                             2009         2008         2009         2008
                             ----         ----         ----         ----
   Net operating revenues $1,519,041   $1,407,304   $2,966,681   $2,752,028
   Operating expenses
    and charges:
       Patient care costs  1,051,879      973,286    2,057,765    1,903,495
       General and
        administrative       132,166      125,199      259,439      245,964
       Depreciation and
        amortization          58,185       52,892      115,308      105,703
       Provision for
        uncollectible
        accounts              41,233       37,497       77,969       72,128
       Equity investment
        (income) loss           (376)          (4)        (358)         523
                                ----           --         ----          ---
           Total operating
            expenses and
            charges        1,283,087    1,188,870    2,510,123    2,327,813
                           ---------    ---------    ---------    ---------
   Operating income          235,954      218,434      456,558      424,215
   Debt expense              (47,088)     (55,320)     (95,389)    (114,386)
   Other income                1,273        2,987        2,027        7,850
                               -----        -----        -----        -----
   Income before income
    taxes                    190,139      166,101      363,196      317,679
   Income tax expense         70,507       58,273      135,290      113,843
                              ------       ------      -------      -------
   Net income                119,632      107,828      227,906      203,836
      Less:  Net income
       attributable to
       noncontrolling
       interests             (13,813)     (12,877)     (25,876)     (21,951)
                            --------     --------     --------     --------
   Net income attributable
    to DaVita Inc.          $105,819      $94,951     $202,030     $181,885
                            ========      =======     ========     ========
   Earnings per share:
       Basic earnings per
        share attributable
        to DaVita Inc.         $1.02        $0.91        $1.95        $1.71
                               =====        =====        =====        =====
       Diluted earnings per
        share attributable
        to DaVita Inc.         $1.02        $0.90        $1.94        $1.70
                               =====        =====        =====        =====
       Weighted average
        shares for earnings
        per share:
           Basic         103,705,683  104,814,817  103,791,579  106,082,024
                         ===========  ===========  ===========  ===========
           Diluted       103,925,843  105,617,173  104,166,964  106,927,556
                         ===========  ===========  ===========  ===========
                                   DAVITA INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (unaudited)
                              (dollars in thousands)

                                                        Six months ended
                                                            June 30,
                                                            --------
                                                        2009         2008
                                                        ----         ----
    Cash flows from operating activities:
    Net income                                        $227,906     $203,836
    Adjustments to reconcile net income to
     cash provided by operating activities:
        Depreciation and amortization                  115,308      105,703
        Stock-based compensation expense                22,412       19,216
        Tax benefits from stock award exercises          9,974        5,264
        Excess tax benefits from stock award exercises  (7,591)      (3,055)
        Deferred income taxes                           30,006       17,171
        Equity investment (income) loss                   (358)         523
        Loss on disposal of assets                       4,813        4,462
        Non-cash debt and non-cash rent charges          6,567        6,953
    Changes in operating assets and
     liabilities, other than from
     acquisitions and divestitures:
        Accounts receivable                            (54,073)    (119,996)
        Inventories                                     19,044         (301)
        Other receivables and other current assets       4,026      (12,493)
        Other long-term assets                           3,324      (10,344)
        Accounts payable                               (51,960)     (18,255)
        Accrued compensation and benefits               37,077        4,091
        Other current liabilities                      (42,359)      58,078
        Income taxes                                    35,535      (10,074)
        Other long-term liabilities                    (13,019)       4,178
                                                      --------        -----
            Net cash provided by operating
             activities                                346,632      254,957
                                                       -------      -------
    Cash flows from investing activities:
        Additions of property and equipment, net      (138,205)    (145,007)
        Acquisitions                                   (43,314)     (46,763)
        Proceeds from asset sales                        5,784          125
        Purchase of investments available for sale      (1,429)      (1,352)
        Purchase of investments held-to-maturity       (15,193)     (15,777)
        Proceeds from sale of investments
         available for sale                             16,537        5,321
        Proceeds from maturities of investments
         held-to-maturity                               15,620       15,462
        Distributions received on equity
         investments                                        88          513
        Purchase of intangible assets and other           (260)         (65)
                                                         -----         ----
            Net cash used in investing activities     (160,372)    (187,543)
                                                     ---------    ---------
    Cash flows from financing activities:
        Borrowings                                   9,114,319    8,397,822
        Payments on long-term debt                  (9,136,951)  (8,397,476)
        Deferred financing costs                           (42)        (130)
        Purchase of treasury stock                     (32,016)    (169,673)
        Excess tax benefits from stock award
         exercises                                       7,591        3,055
        Stock award exercises and other share
         issuances, net                                 16,691       12,770
        Distributions to noncontrolling interests      (29,895)     (29,423)
        Contributions from noncontrolling interests      6,504       10,048
        Proceeds from sales of additional
         noncontrolling interests                        5,475        8,422
        Purchases from noncontrolling interests         (4,704)     (22,889)
                                                       -------     --------
            Net cash used in financing activities      (53,028)    (187,474)
                                                      --------    ---------
    Net increase (decrease) in cash and cash
     equivalents                                       133,232     (120,060)
    Cash and cash equivalents at beginning
     of period                                         410,881      447,046
                                                       -------      -------
    Cash and cash equivalents at end of period        $544,113     $326,986
                                                      ========     ========
                                   DAVITA INC.
                            CONSOLIDATED BALANCE SHEETS
                                   (unaudited)
                  (dollars in thousands, except per share data)

                        ASSETS                        June 30,  December 31,
                                                        2009        2008
                                                        ----        ----
   Cash and cash equivalents                          $544,113    $410,881
   Short-term investments                               19,109      35,532
   Accounts receivable, less allowance of
    $222,067 and $211,222                            1,128,330   1,075,457
   Inventories                                          65,354      84,174
   Other receivables                                   226,931     239,165
   Other current assets                                 37,851      33,761
   Income tax receivable                                     -      32,130
   Deferred income taxes                               211,709     217,196
                                                       -------     -------
           Total current assets                      2,233,397   2,128,296
   Property and equipment, net                       1,075,349   1,048,075
   Amortizable intangibles, net                        148,923     160,521
   Investments in third-party dialysis businesses       24,144      19,274
   Long-term investments                                 6,827       5,656
   Other long-term assets                               44,104      47,330
   Goodwill                                          3,908,290   3,876,931
                                                     ---------   ---------
                                                    $7,441,034  $7,286,083
                                                    ==========  ==========
                LIABILITIES AND EQUITY
   Accounts payable                                   $230,576    $282,883
   Other liabilities                                   453,048     495,239
   Accrued compensation and benefits                   329,517     312,216
   Current portion of long-term debt                    92,290      72,725
   Income taxes payable                                  3,409           -
                                                         -----         ---
           Total current liabilities                 1,108,840   1,163,063
   Long-term debt                                    3,579,417   3,622,421
   Other long-term liabilities                         100,209     101,442
   Alliance and product supply agreement, net           33,312      35,977
   Deferred income taxes                               274,303     244,884
                                                       -------     -------
           Total liabilities                         5,096,081   5,167,787
   Commitments and contingencies
   Noncontrolling interests subject to put
    provisions                                         288,458     291,397
   Equity:
       Preferred stock ($0.001 par value, 5,000,000
        shares authorized; none issued)
       Common stock ($0.001 par value, 450,000,000
        shares authorized; 134,862,283 shares
        issued; 103,989,672 and 103,753,673 shares
        outstanding)                                       135         135
       Additional paid-in capital                      620,259     584,358
       Retained earnings                             2,091,480   1,889,450
       Treasury stock, at cost (30,872,611 and
        31,108,610 shares)                            (701,783)   (691,857)
       Accumulated other comprehensive loss            (10,033)    (14,339)
                                                      --------    --------
           Total DaVita Inc. shareholders' equity    2,000,058   1,767,747
   Noncontrolling interests not subject to put
    provisions                                          56,437      59,152
                                                        ------      ------
   Total equity                                      2,056,495   1,826,899
                                                     ---------   ---------
                                                    $7,441,034  $7,286,083
                                                    ==========  ==========
                                    DAVITA INC.
                            SUPPLEMENTAL FINANCIAL DATA
                                    (unaudited)
         (dollars in millions, except for per share and per treatment data)

                                         Three months ended       Six months
                                         ------------------         ended
                                    June 30,  March 31,  June 30,   June 30,
                                     2009       2009      2008       2009
                                     ----       ----      ----       ----
    1. Consolidated
     Financial Results:
       Revenues                     $1,519     $1,448    $1,407      $2,967
       Operating income             $236.0     $220.6    $218.4      $456.6
         Operating income margin      15.5%      15.2%     15.5%       15.4%
       Net income attributable to
        DaVita Inc.                 $105.8      $96.2     $95.0      $202.0
       Diluted earnings per
        share attributable to
        DaVita Inc.                  $1.02      $0.92     $0.90       $1.94

    2. Consolidated Business Metrics:
     Expenses
         Patient care costs as a
          percent of consolidated
          revenue (3)                 69.2%      69.5%     69.2%       69.4%
         General and administrative
          expenses as a percent
          of consolidated revenue (3)  8.7%       8.8%      8.9%        8.7%

         Bad debt expense as a
          percent of
          consolidated revenue         2.7%       2.5%      2.7%        2.6%

         Consolidated effective
          tax rate attributable to
          DaVita Inc. (1)             40.0%      40.2%     38.0%       40.1%

    3. Segment Financial Results:
        (dollar amounts rounded to
        nearest million)
       Dialysis and related
        lab services
         Revenues                   $1,441     $1,377    $1,351      $2,818
         Direct operating expenses  $1,190     $1,140    $1,113      $2,330
                                    ------     ------    ------      ------
           Dialysis segment margin    $251       $237      $238        $488
                                      ====       ====      ====        ====

        Other - Ancillary services
         and strategic initiatives
         Revenues                      $78        $71       $56        $149
         Direct operating expenses     $82         76        66        $158
                                       ---         --        --        ----
           Ancillary segment loss      $(4)       $(5)     $(10)        $(9)
                                       ===        ===      ====         ===

        Total segment margin          $247       $232      $228        $479
         Reconciling items:
         Stock-based compensation      (11)       (11)      (10)        (22)
                                      ----       ----      ----        ----
           Consolidated operating
            income                    $236       $221      $218        $457
                                      ====       ====      ====        ====
                                     DAVITA INC.
                        SUPPLEMENTAL FINANCIAL DATA--continued
                                     (unaudited)
         (dollars in millions, except for per share and per treatment data)

                                         Three months ended       Six months
                                         ------------------         ended
                                    June 30,  March 31,  June 30,   June 30,
                                     2009       2009      2008       2009
                                     ----       ----      ----       ----
    4. Segment Business Metrics:
       Dialysis and related lab
        services:
        Volume
         Treatments              4,228,179  4,082,439  4,018,763  8,310,617
         Number of treatment days     78.0       76.5       78.0      154.5
         Treatments per day         54,207     53,365     51,523     53,790
         Per day year over year
          increase                     5.2%       5.0%       6.0%       5.1%
         Non-acquired growth year
          over year                    4.5%       4.0%       4.5%       4.3%

        Revenue
         Dialysis and related lab
          services revenue per
          treatment                $340.35    $336.73    $335.98    $338.58
         Per treatment increase
          from previous quarter        1.1%       1.2%       2.1%         -
         Per treatment increase
          (decrease)from previous
          year                         1.3%       2.4%      (0.6%)      1.8%
         Percent of consolidated
          revenue                     94.9%      95.1%      96.0%      95.0%

      Expenses
         Patient care costs
           Percent of segment
            revenue                   68.6%      68.8%      68.7%      68.7%
           Per treatment           $233.93    $231.88    $230.92    $232.92
           Per treatment increase
            from previous quarter      0.9%       1.6%       2.1%         -
           Per treatment increase
            from previous year         1.3%       2.5%       1.2%       1.9%

       General and administrative
        expenses
           Percent of segment
            revenue                    7.3%       7.4%       7.3%       7.4%
           Per treatment            $24.92     $24.99     $24.64     $24.96
           Per treatment (decrease)
            increase from previous
            quarter                   (0.3%)     (1.5%)      4.9%         -
           Per treatment increase
            (decrease) from previous
            year                       1.1%       6.3%      (7.2%)      3.7%

     5. Cash Flow
         Operating cash flow        $212.4     $134.2     $147.0     $346.6
         Operating cash flow last
          twelve months             $705.4     $640.0     $596.9
         Free cash flow(1)          $173.6      $89.5     $114.4     $263.1
         Free cash flow, last
          Twelve months(1)          $526.8     $467.7     $445.1
         Capital expenditures:
            Development and
             relocations             $42.5      $42.0      $60.2      $84.5
            Routine maintenance/IT
             other                   $22.5      $31.2      $20.2      $53.7
            Acquisition expenditures  $3.5      $39.8      $41.1      $43.3

     6. Accounts Receivable
         Net receivables            $1,128     $1,089     $1,047
         DSO                            70         70         70
                                  DAVITA INC.
                     SUPPLEMENTAL FINANCIAL DATA--continued
                                  (unaudited)
      (dollars in millions, except for per share and per treatment data)

                                         Three months ended       Six months
                                         ------------------         ended
                                    June 30,  March 31,  June 30,   June 30,
                                     2009       2009      2008       2009
                                     ----       ----      ----       ----

  7. Debt and Capital Structure
      Total debt(2)                 $3,669     $3,680    $3,705
      Net debt, net of cash(2)      $3,124     $3,275    $3,378
      Leverage ratio
       (see Note 1 on page 9)        2.66x      2.83x     3.07x
      Overall effective weighted
       average interest rate during
       the quarter                   4.92%      5.04%     5.75%
      Overall effective weighted
       average interest rate at end
       of the quarter                4.87%      5.04%     5.68%
      Effective weighted average
       interest rate on the Senior
       Secured Credit Facilities at
       end of the quarter            3.02%      3.36%     4.59%
      Economically fixed interest
       rates as a percentage of our
       total debt                      64%        66%       69%
      Share repurchases                $-      $32.0    $137.2      $32.0

  8. Clinical (quarterly averages)
      Dialysis adequacy -% of patients
       with Kt/V > 1.2                 95%        95%       95%
      90 day patients with Hb>=10 <=13 88%        87%         -
      Patients with arteriovenous
       fistulas placed                 63%        62%       60%

  ------------------
  (1) These are non-GAAP financial measures. For a reconciliation of these
      non-GAAP financial measures to their most comparable measure
      calculated and presented in accordance with GAAP, see attached
      reconciliation schedules.
  (2) This is a non-GAAP financial measure. It excludes $3.1 million, for
      the quarter ended June 30, 2009, the unamortized balance of a debt
      premium associated with our senior notes that is not actually
      outstanding debt principal.
  (3) Consolidated percentages of revenue and per treatment amounts are
      comprised of the dialysis and related lab services business, other
      ancillary services and strategic initiatives, as well as stock-based
      compensation expenses.
                                 DAVITA INC.
                   SUPPLEMENTAL FINANCIAL DATA--continued
                                 (unaudited)
                           (dollars in thousands)

  Note 1: Calculation of the Leverage Ratio
  Under the Company's current Senior Secured Credit Facilities (Credit
  Agreement), the leverage ratio is defined as all funded debt plus the face
  amount of all letters of credit issued, minus cash and cash equivalents,
  divided by "Consolidated EBITDA". The leverage ratio determines the
  interest rate margin payable by the Company for its term loan A and
  revolving line of credit under the Credit Agreement by establishing the
  margin over the base interest rate (LIBOR) that is applicable. The
  following leverage ratio was calculated using "Consolidated EBITDA" as
  defined in the Credit Agreement.  The calculation below is based on the
  last twelve months of "Consolidated EBITDA", pro forma for the routine
  acquisitions that occurred during the period. The Company's management
  believes the presentation of "Consolidated EBITDA" is useful to investors
  to enhance their understanding of the Company's leverage ratio under its
  Credit Agreement.
                                                            Rolling twelve
                                                           months ended June
                                                               30, 2009
                                                               --------
   Net income attributable to DaVita Inc.                        $394,305
   Income taxes                                                   256,918
   Debt expense                                                   205,719
   Depreciation and amortization                                  226,522
   Noncontrolling interests and equity investment loss, net        49,408
   Other                                                           15,413
   Stock-based compensation expense                                44,429
                                                                   ------
       "Consolidated EBITDA"                                   $1,192,714
                                                               ==========

                                                            June 30, 2009
                                                            -------------
   Total debt, excluding debt premium of $3.1 million          $3,668,589
   Letters of credit issued                                        48,401
                                                                   ------
                                                                3,716,990
   Less: cash and cash equivalents                               (544,113)
                                                                ---------
   Consolidated net debt                                       $3,172,877
                                                               ==========
   Last twelve months "Consolidated EBITDA"                    $1,192,714
                                                               ==========
   Leverage ratio                                                   2.66x
                                                            =============

  In accordance with the Company's Credit Agreement, the Company's leverage
  ratio cannot exceed 4.25 to 1.0 as of June 30, 2009. At that date the
  Company's leverage ratio did not exceed 4.25 to 1.0.
                                  DAVITA INC.
                      RECONCILIATIONS FOR NON-GAAP MEASURES
                                  (unaudited)
                             (dollars in thousands)

  1.  Effective Income Tax Rates

  We believe that reporting the effective income tax rate attributable to
  DaVita Inc. enhances a user understanding of DaVita's effective income tax
  rate for the periods presented because it excludes noncontrolling owners'
  income that primarily relates to non-tax paying entities and accordingly
  is more comparable to prior periods presentations regarding DaVita's
  effective income tax rate and is more meaningful to a user to fully
  understand the related income tax effects on DaVita Inc. operating
  results. This measure is not a measure of financial performance under
  United States generally accepted accounting principles and should not be
  considered as an alternative to the effective income tax rate.

  Effective income tax rate as compared to the effective income tax rate
  attributable to DaVita Inc. is as follows:

                                         Three months ended       Six months
                                         ------------------         ended
                                    June 30,  March 31,  June 30,   June 30,
                                     2009       2009      2008       2009
                                     ----       ----      ----       ----

  Income before income taxes       $190,139   $173,057  $166,101   $363,196
                                   ========   ========  ========   ========
  Income tax expense                $70,507    $64,783   $58,273   $135,290
                                    =======    =======   =======   ========
  Effective income tax rate            37.1%      37.4%     35.1%      37.2%
                                       ====       ====      ====       ====
                                         Three months ended       Six months
                                         ------------------         ended
                                    June 30,  March 31,  June 30,   June 30,
                                     2009       2009      2008       2009
                                     ----       ----      ----       ----
  Income before income taxes       $190,139   $173,057  $166,101   $363,196
  Less:  Noncontrolling
   owners' income primarily
   attributable to non-tax
   paying entities                  (13,913)   (12,156)  (12,880)   (26,069)
  Income before income taxes       --------   --------  --------   --------
   attributable to DaVita Inc.     $176,226   $160,901  $153,221   $337,127
                                   ========   ========  ========   ========
  Income tax expense                $70,507    $64,783   $58,273   $135,290
  Less income tax attributable
   to noncontrolling interests         (100)       (93)       (3)      (193)
  Income tax attributable to          -----       ----       ---      -----
   DaVita Inc.                      $70,407    $64,690   $58,270   $135,097
                                    =======    =======   =======   ========
  Effective income tax rate
   attributable to DaVita Inc.         40.0%      40.2%     38.0%      40.1%
                                      =====      =====     =====      =====
                                  DAVITA INC.
                      RECONCILIATIONS FOR NON-GAAP MEASURES
                                  (unaudited)
                             (dollars in thousands)

  2.  Free cash flow

  Free cash flow represents net cash provided by operating activities less
  income distributions to noncontrolling interests and capital expenditures
  for routine maintenance and information technology.  We believe free cash
  flow is a useful adjunct to cash flow from operating activities and other
  measurements under United States generally accepted accounting principles,
  since free cash flow is a meaningful measure of our ability to fund
  acquisition and development activities and meet our debt service
  requirements. In addition, free cash flow excluding income distributions
  to noncontrolling interests also provides a user with an understanding of
  free cash flows that are attributable to DaVita Inc. Free cash flow is not
  a measure of financial performance under United States generally accepted
  accounting principles and should not be considered as an alternative to
  cash flows from operating, investing or financing activities, as an
  indicator of cash flows or as a measure of liquidity.

                                         Three months ended       Six months
                                         ------------------         ended
                                    June 30,  March 31,  June 30,   June 30,
                                     2009       2009      2008       2009
                                     ----       ----      ----       ----

  Cash provided by operating
   activities                      $212,383   $134,249  $147,045   $346,632
  Less:  Income distributions
   to noncontrolling interests      (16,328)   (13,567)  (12,535)   (29,895)
                                   --------   --------  --------   --------
  Cash provided by operating
   activities attributable to
   DaVita Inc.                     $196,055   $120,682  $134,510   $316,737
  Less: Expenditures for
   routine maintenance and
   information technology           (22,502)   (31,155)  (20,153)   (53,657)
                                   --------   --------  --------   --------
  Free cash flow                   $173,553    $89,527  $114,357   $263,080
                                   ========    =======  ========   ========


                                           Rolling 12-Month Period
                                           -----------------------
                                      June 30,    March 31,    June 30,
                                        2009         2009        2008
                                        ----         ----        ----
  Cash provided by operating
   activities                         $705,376     $640,038    $596,860
  Less:  Income distributions to
   noncontrolling interests            (58,242)     (54,449)    (52,222)
                                      --------     --------    --------
  Cash provided by operating
   activities attributable to
   DaVita Inc.                        $647,134     $585,589    $544,638
  Less: Expenditures for routine
   maintenance and information
   technology                         (120,286)    (117,937)    (99,521)
                                     ---------    ---------    --------
  Free cash flow.                     $526,848     $467,652    $445,117
                                      ========     ========    ========

First Call Analyst:
FCMN Contact: LeAnne.Zumwalt@davita.com

Photo: http://www.newscom.com/cgi-bin/prnh/20020729/DAVITALOGO
http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com

SOURCE: DaVita Inc.

CONTACT: LeAnne Zumwalt, Investor Relations of DaVita Inc.,
+1-650-696-8910


Contact Investor Relations

For media inquiries, please contact:

Media Kit

Kate Stabrawa
2000 16th Street
Denver, CO 80202
(303) 876-7527