Kindred Healthcare to Comment on Recent LTAC Legislation During J.P. Morgan Healthcare Conference

  Kindred Healthcare to Comment on Recent LTAC Legislation During J.P. Morgan
  Healthcare Conference

JPMorgan Healthcare Conference 2014

Business Wire

LOUISVILLE, Ky. -- January 14, 2014

Kindred Healthcare, Inc. (“Kindred” or the “Company”) (NYSE:KND) today
announced that Paul J. Diaz, Chief Executive Officer, will make a presentation
regarding the Company at the 32nd Annual J.P. Morgan Healthcare Conference in
San Francisco, California, on Wednesday, January 15, 2014, at 9:30 a.m.
Pacific Time / 12:30 p.m. Eastern Time. The Company expects to provide its
preliminary views on the recent legislation impacting long-term acute care
(“LTAC”) hospitals that was enacted as part of the Bipartisan Budget Act of

The presentation is being audio webcast and can be accessed at the Company’s
website at and at

The written materials accompanying the presentation also will be available on
Kindred’s website at the time of the presentation and are available by
clicking here. The webcast and any written materials accompanying the
presentation will be archived at after
the event.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. All statements regarding the
Company’s expected future financial position, results of operations, cash
flows, financing plans, business strategy, budgets, capital expenditures,
competitive positions, growth opportunities, plans and objectives of
management and statements containing the words such as “anticipate,”
“approximate,” “believe,” “plan,” “estimate,” “expect,” “project,” “could,”
“should,” “will,” “intend,” “may” and other similar expressions, are
forward-looking statements. Statements in this press release concerning the
Company’s business outlook or future economic performance, anticipated
profitability, revenues, expenses or other financial items, and product or
services line growth, together with other statements that are not historical
facts, are forward-looking statements that are estimates reflecting the best
judgment of the Company based upon currently available information.

Such forward-looking statements are inherently uncertain, and stockholders and
other potential investors must recognize that actual results may differ
materially from the Company’s expectations as a result of a variety of
factors, including, without limitation, those discussed below. Such
forward-looking statements are based upon management’s current expectations
and include known and unknown risks, uncertainties and other factors, many of
which the Company is unable to predict or control, that may cause the
Company’s actual results or performance to differ materially from any future
results or performance expressed or implied by such forward-looking
statements. These statements involve risks, uncertainties and other factors
discussed below and detailed from time to time in the Company’s filings with
the Securities and Exchange Commission.

In addition to the factors set forth above, other factors that may affect the
Company’s plans, results or stock price include, without limitation, (a) the
impact of healthcare reform, which will initiate significant changes to the
United States healthcare system, including potential material changes to the
delivery of healthcare services and the reimbursement paid for such services
by the government or other third party payors, including reforms resulting
from the Patient Protection and Affordable Care Act and the Healthcare
Education and Reconciliation Act (collectively, the “ACA”) or future deficit
reduction measures adopted at the federal or state level. Healthcare reform is
affecting each of the Company’s businesses in some manner. Potential future
efforts in the U.S. Congress to repeal, amend, modify or retract funding for
various aspects of the ACA create additional uncertainty about the ultimate
impact of the ACA on the Company and the healthcare industry. Due to the
substantial regulatory changes that will need to be implemented by the Centers
for Medicare and Medicaid Services (“CMS”) and others, and the numerous
processes required to implement these reforms, the Company cannot predict
which healthcare initiatives will be implemented at the federal or state
level, the timing of any such reforms, or the effect such reforms or any other
future legislation or regulation will have on the Company’s business,
financial position, results of operations and liquidity, (b) the impact of
final rules issued by CMS on August 1, 2012 which, among other things, will
reduce Medicare reimbursement to the Company’s Transitional Care (“TC”)
hospitals in 2013 and beyond by imposing a budget neutrality adjustment and
modifying the short-stay outlier rules, (c) the impact of final rules issued
by CMS on July 29, 2011 which significantly reduced Medicare reimbursement to
the Company’s nursing centers and changed payments for the provision of group
therapy services effective October 1, 2011, (d) the impact of the Budget
Control Act of 2011 (as amended by the American Taxpayer Relief Act of 2012
(the “Taxpayer Relief Act”)) which will automatically reduce federal spending
by approximately $1.2 trillion split evenly between domestic and defense
spending. An automatic 2% reduction on each claim submitted to Medicare began
on April 1, 2013, (e) the impact of the Taxpayer Relief Act which, among other
things, reduces Medicare payments by 50% for subsequent procedures when
multiple therapy services are provided on the same day. At this time, the
Company believes that the rules related to multiple therapy services will
reduce the Company’s Medicare revenues by $25 million to $30 million on an
annual basis, (f) changes in the reimbursement rates or the methods or timing
of payment from third party payors, including commercial payors and the
Medicare and Medicaid programs, changes arising from and related to the
Medicare prospective payment system for LTAC hospitals, including potential
changes in the Medicare payment rules, the Medicare Prescription Drug,
Improvement, and Modernization Act of 2003, and changes in Medicare and
Medicaid reimbursement for the Company’s TC hospitals, nursing centers,
inpatient rehabilitation hospitals and home health and hospice operations, and
the expiration of the Medicare Part B therapy cap exception process, (g) the
effects of additional legislative changes and government regulations,
interpretation of regulations and changes in the nature and enforcement of
regulations governing the healthcare industry, (h) the ability of the
Company’s hospitals to adjust to potential LTAC certification and medical
necessity reviews, (i) the costs of defending and insuring against alleged
professional liability and other claims (including those related to pending
whistleblower and wage and hour class action lawsuits against the Company) and
the Company’s ability to predict the estimated costs and reserves related to
such claims, including the impact of differences in actuarial assumptions and
estimates compared to eventual Kindred Healthcare to Comment on Recent LTAC
Legislation During J.P. Morgan Healthcare Conference outcomes, (j) the impact
of the Company’s significant level of indebtedness on the Company’s funding
costs, operating flexibility and ability to fund ongoing operations,
development capital expenditures or other strategic acquisitions with
additional borrowings, (k) the Company’s ability to successfully redeploy its
capital and proceeds of asset sales in pursuit of its business strategy and
pursue its development activities, including through acquisitions, and
successfully integrate new operations, including the realization of
anticipated revenues, economies of scale, cost savings and productivity gains
associated with such operations, as and when planned, including the potential
impact of unanticipated issues, expenses and liabilities associated with those
activities, (l) the Company’s ability to pay a dividend as, when and if
declared by the Board of Directors, in compliance with applicable laws and the
Company’s debt and other contractual arrangements, (m) the failure of the
Company’s facilities to meet applicable licensure and certification
requirements, (n) the further consolidation and cost containment efforts of
managed care organizations and other third party payors, (o) the Company’s
ability to meet its rental and debt service obligations, (p) the Company’s
ability to operate pursuant to the terms of its debt obligations, and comply
with its covenants thereunder, and its ability to operate pursuant to its
master lease agreements with Ventas, Inc. (“Ventas”) (NYSE:VTR), (q) the
condition of the financial markets, including volatility and weakness in the
equity, capital and credit markets, which could limit the availability and
terms of debt and equity financing sources to fund the requirements of the
Company’s businesses, or which could negatively impact the Company’s
investment portfolio, (r) the Company’s ability to control costs, particularly
labor and employee benefit costs, (s) the Company’s ability to successfully
reduce or mitigate (by divestiture of operations or otherwise) its exposure to
professional liability and other claims, (t) the Company’s obligations under
various laws to self-report suspected violations of law by the Company to
various government agencies, including any associated obligation to refund
overpayments to government payors, fines and other sanctions, (u) the
potential for diversion of management time and resources in seeking to
transfer the operations of 60 non-strategic nursing centers currently leased
from Ventas, (v) national and regional economic, financial, business and
political conditions, including their effect on the availability and cost of
labor, credit, materials and other services, (w) increased operating costs due
to shortages in qualified nurses, therapists and other healthcare personnel,
(x) the Company’s ability to attract and retain key executives and other
healthcare personnel, (y) the Company’s ability to successfully dispose of
unprofitable facilities, (z) events or circumstances which could result in the
impairment of an asset or other charges, such as the impact of the Medicare
reimbursement regulations that resulted in the Company recording significant
impairment charges in 2012 and 2011, (aa) changes in generally accepted
accounting principles or practices, and changes in tax accounting or tax laws
(or authoritative interpretations relating to any of these matters), and (bb)
the Company’s ability to maintain an effective system of internal control over
financial reporting.

Many of these factors are beyond the Company’s control. The Company cautions
investors that any forward-looking statements made by the Company are not
guarantees of future performance. The Company disclaims any obligation to
update any such factors or to announce publicly the results of any revisions
to any of the forward-looking statements to reflect future events or

About Kindred Healthcare

Kindred Healthcare, Inc., a top-150 private employer in the United States, is
a FORTUNE 500 healthcare services company based in Louisville, Kentucky with
annual revenues of approximately $5 billion and approximately 62,000 employees
in 46 states. At September 30, 2013, Kindred through its subsidiaries provided
healthcare services in 2,146 locations, including 102 transitional care
hospitals, five inpatient rehabilitation hospitals, 102 nursing centers, 21
sub-acute units, 105 Kindred at Home hospice, home health and non-medical home
care locations, 99 inpatient rehabilitation units (hospital-based) and a
contract rehabilitation services business, RehabCare, which served 1,712
non-affiliated facilities. Ranked as one of Fortune magazine’s Most Admired
Healthcare Companies for five 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 You can also follow us on
Twitter and Facebook.


Kindred Healthcare, Inc.
Hank Robinson, 502-596-7732
Senior Vice President, Tax and Treasurer
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