Kindred Healthcare Announces Additional Integrated Care Market Development Plans and New Hospital Openings

  Kindred Healthcare Announces Additional Integrated Care Market Development
  Plans and New Hospital Openings

Business Wire

LOUISVILLE, Ky. -- November 12, 2012

Kindred Healthcare, Inc. (the “Company” or “Kindred”) (NYSE:KND) today
announced the planned development of two new Transitional Care Centers in
Indianapolis, Indiana and Las Vegas, Nevada, the opening of a Transitional
Care Hospital in Dayton, Ohio, and the planned opening of a Transitional Care
Hospital in Charleston, South Carolina.

New Transitional Care Centers in Indianapolis, Indiana and Las Vegas, Nevada

Kindred intends to open a new 100-bed Transitional Care Center (licensed for
skilled nursing care) in Indianapolis, Indiana on a site adjacent to St.
Francis Health Indianapolis Campus. The Transitional Care Center will
specialize in intensive short-term rehabilitation therapy, including cardiac
and orthopedic rehabilitation. Pending certain regulatory approvals, the
Company anticipates groundbreaking in the first quarter of 2013 and opening in
the first quarter of 2014. In the Indianapolis market, Kindred currently
operates two Transitional Care Hospitals (licensed as long-term acute care
hospitals), seven nursing and rehabilitation centers, one hospice and home
health location, and through its RehabCare division one hospital based acute
rehabilitation unit.

The Company also plans to open a new 150-bed Transitional Care Center in Las
Vegas, Nevada on a site adjacent to Universal Health Services, Inc.’s Spring
Valley Hospital Medical Center. The Transitional Care Center will specialize
in intensive short-term rehabilitation therapy, including cardiac, pulmonary
and orthopedic rehabilitation. Pending certain regulatory approvals, the
Company anticipates groundbreaking in the first quarter of 2013 and opening in
the first quarter of 2014. In the Las Vegas market, Kindred currently operates
three Transitional Care Hospitals, two nursing and rehabilitation centers, one
co-located hospital based sub-acute unit, and two hospice, home care and
private duty locations.

New Replacement Hospitals in Dayton, Ohio and Charleston, South Carolina

Kindred has opened a new and expanded 67-bed Transitional Care Hospital in
Dayton. The new Kindred Hospital Dayton has all private rooms and services
such as an expanded intensive care unit, expanded radiology department with CT
scanner and therapy gym. The Company plans to open a co-located sub-acute unit
in the future, pending regulatory approvals. In the Dayton market, in addition
to Kindred Hospital Dayton, the Company operates one hospice location.

The Company also plans to open a new and expanded 59-bed Transitional Care
Hospital in Charleston later this quarter, pending regulatory approvals. The
new freestanding hospital will have all private rooms and services such as an
intensive care unit, therapy gym and dialysis unit. In addition, the relocated
Kindred Hospital Charleston will have a 35-bed co-located sub-acute unit. In
South Carolina, in addition to Kindred Hospital Charleston, the Company
operates one acute rehabilitation unit.

Management Commentary

“These projects reflect our commitment to growing the Company and pursuing our
Integrated Care Market and “Continue the Care” initiatives,” said Paul J.
Diaz, Chief Executive Officer of the Company. “Our strategic plan is to build
the capabilities to provide a full continuum of post-acute services in
selective markets throughout the country. We believe that our Integrated Care
Market strategy better clinically supports a patient’s recovery through a full
episode of care and responds to the growing interest among patients,
physicians, hospital systems and public and private payors for high-quality,
patient-centered integrated care.”

New Investor Presentation

In advance of the Company’s previously announced presentations at two upcoming
investor conferences on November 14, 2012, the Company will post a new
investor presentation on its website by 12:00 noon Eastern Time today at
http://investors.kindredhealthcare.com. The Lazard Capital Markets
presentation is being audio webcast and can be accessed at
http://investors.kindredhealthcare.com and at http://wsw.com/webcast/lz13/knd.
The Credit Suisse presentation is being audio webcast and can be accessed at
http://investors.kindredhealthcare.com and at
http://cc.talkpoint.com/cred001/111412a_am/?entity=18_DBG10V5.

About Kindred Healthcare

Kindred Healthcare, Inc., a top-125 private employer in the United States, is
a FORTUNE 500 healthcare services company based in Louisville, Kentucky with
annual revenues of $6 billion and approximately 78,000 employees in 46 states.
At September 30, 2012, Kindred through its subsidiaries provided healthcare
services in 2,212 locations, including 117 transitional care hospitals, six
inpatient rehabilitation hospitals, 224 nursing and rehabilitation centers, 27
sub-acute units, 102 hospice, home care and private duty locations, 104
inpatient rehabilitation units (hospital-based) and a contract rehabilitation
services business, RehabCare, which served 1,632 non-affiliated facilities.
Ranked as one of Fortune magazine’s Most Admired Healthcare Companies for four
years in a row, Kindred’s mission is to promote healing, provide hope,
preserve dignity and produce value for each patient, resident, family member,
customer, employee and shareholder we serve. For more information, go to
www.kindredhealthcare.com.

Contact:

Kindred Healthcare, Inc.
Susan E. Moss, 502-596-7296
Vice President, Communications