Kindred Outlines Solutions for Aging Americans with Quality, Innovation and Social Responsibility Report

LOUISVILLE, Ky.–(BUSINESS WIRE)–Kindred Healthcare, Inc. (“Kindred” or the “Company”) (NYSE:KND) today
released its 2015 Quality, Innovation and Social Responsibility Report
that highlights major achievements for the year and shares some of the
Company’s solutions for population health in the years ahead.

The report details Kindred’s commitment to addressing the issues faced
by patients, family members, payers and providers as the number of
seniors rapidly rises and healthcare costs and confusion grow. We
highlight how Kindred has significantly expanded its care management
capabilities and data-driven solutions to deliver medical and
rehabilitative care that best supports recovery and a return home, while
also establishing ourselves as a trusted resource for consumers and
partners alike. The report is available at www.kindredhealthcare.com/our-company/our-quality.

“While we look back at another successful year in clinical quality, we
are excited to share what we see as the future of care for an aging
America,” said Benjamin A. Breier, Kindred’s President and Chief
Executive Officer. “This report details how Kindred has transformed
operations and capabilities in order to deliver care and services where
and when patients need it most. Our partnerships with premier hospitals
and health systems strengthen our ability to effectively manage care
nationwide. And Kindred’s care platform spans the continuum of
post-acute services with the goal of coordinating patient care
throughout an entire episode – with a focus on helping people live well
at home.”

“We are a company driven by our Mission – a Mission that demands we meet
not only the healthcare needs of our patients, but of our communities,”
continued Mr. Breier. “Building supportive relationships with our
patients and families is at the heart of what Kindred delivers each day.”

In order to drive healthcare solutions and best meet patient need,
Kindred has engaged in significant initiatives and earned recognitions:

Solutions

An Integrated Post-Acute Care Provider – As the nation’s largest,
fully diversified provider of post-acute care across the continuum,
Kindred now has the ability to meet the health and wellness needs of
senior Americans from hospital to home.

Post-Acute Care Benefits Management – As a post-acute
benefits manager, Kindred delivers quality care services across the full
continuum – including in the home – in a
seamless way, partners with hospital systems and payers to improve care
and lower costs, and provides consumer information and support even
after patients leave our care. Additionally, through our recently
announced partnership with Inovalon (NASDAQ:INOV), we will leverage data
to stratify patients, determine the most appropriate post-acute sites of
service, develop evidence-based care pathways, and establish pricing
models in order to better serve patients, partners and payers.

1.866.KINDRED: 24/7 Direct Consumer Assistance by Registered Nurses –
In 2015, Kindred’s Contact Center, which is staffed by Registered
Nurses, had almost 29,000 interactions via phone or email with families
who needed help navigating care for their loved ones when they left the
hospital. Whether someone needs answers about insurance or Medicare
coverage, care for aging parents, rehabilitative services after an
illness or surgery, or care in the home, Kindred’s nurses provide
answers and help guide consumers to the services that exist within their
local communities. Kindred nurses also began contacting patients
following their stay at a Kindred facility in order to ensure patients
had a positive experience and, if necessary, help them obtain continuing
care.

Clinical Excellence

Transitional Care Hospitals – In 2015, Kindred Transitional Care
Hospitals treated the most seriously ill and medically complex patients,
discharging more than 68% of patients home or to a lower acuity setting.
In 2015, Transitional Care Hospitals outperformed national benchmarks
including catheter-associated urinary tract infections.

Inpatient Rehabilitation Facilities – As a leading
provider of inpatient rehabilitation services nationwide, Kindred’s
freestanding Inpatient Rehabilitation Facilities and managed
hospital-based Acute Rehabilitation Units outperformed peers in key
clinical measures in 2015.

Nursing Centers – In 2015, Kindred Nursing and Rehabilitation
Centers significantly outperformed peer providers in survey performance
– with no substandard care citations. Our Nursing Centers discharged 56%
of patients home after an average stay of 30 days.

Home Health and Hospice – In 2015, 111 of Kindred at Home’s home
health locations were named to the HomeCare Elite list, which identifies
the nation’s top 25% of Medicare-certified agencies. In another measure
of quality performance, more than 91% of Kindred at Home’s home health
locations had three or more stars for quality of patient care in the
Centers for Medicare and Medicaid Services’ Five-Star Rating System,
which recognizes the highest quality care. Additionally, in 2015, our
personal home care assistance locations significantly outperformed
national benchmarks in client satisfaction.

Kindred Rehabilitation Services – In 2015, Kindred Rehabilitation
Services delivered therapy to more than 556,000 patients, aiding in
their recovery and return home. At discharge from RehabCare services,
patients regained 81.5% of the function that they had prior to injury or
illness that necessitated the therapy services.

Kindred House Calls – Kindred’s House Calls provide high-quality
physician-based house call services for patients who are at high risk
for hospitalization and cannot easily access traditional outpatient
services – enabling patients to stay at home. Through our tailored
medical care, we are delivering improved clinical outcomes, preventing
emergency room visits and hospital stays, and creating positive patient
experiences.

Business Growth

South Carolina Home Health Expansion – Kindred acquired
from the South Carolina Department of Health and Environmental Control
(“DHEC”) licenses to provide home health services in all 46 counties in
South Carolina for approximately $18 million. Kindred reached an
agreement with DHEC following a state bidding process. The agreement
took effect January 1, 2016, and allowed Kindred to expand its services
throughout the entire state.

New Inpatient Rehabilitation Hospitals – In 2015 and early
2016, Kindred opened three new hospitals in partnership with other
healthcare providers in Arlington, Texas, Madison, Wisconsin, and
Cleveland, Ohio.

Kindred House Calls – In 2015, Kindred House Calls, the
Company’s Home-Based Primary Care business, continued to grow and
currently employs approximately 70 practitioners in four states, who
serve more than 7,500 patients and make more than 60,000 home visits. In
March 2015, Kindred acquired Physician House Calls LLC, a physician-led,
primary care practice based in Denver, Colorado, which delivers care in
home-based settings. Dr. Thomas Lally, who founded Physician House
Calls, is now Chief Medical Officer for Kindred House Calls. In May
2015, Kindred acquired House Call Doctors of Austin, Texas, which
provides in-home medical care in Austin, Houston, San Antonio, Dallas
and surrounding areas.

New Transitional Care Centers – Kindred opened new
Transitional Care Centers in Las Vegas, Nevada (160 beds), and Phoenix,
Arizona (120 beds).

Craig and Shepherd – In 2015, Kindred entered into an affiliation
with two of the nation’s leading rehabilitation hospitals – Craig
Hospital in Englewood, Colorado, and Shepherd Center in Atlanta, Georgia
– in order to establish a network of expert neuro-rehabilitation care
locations in post-acute settings. The affiliation also supports
rehabilitative research, and the affiliate partners will share
clinically-proven practices and educational programs.

Future Growth – Kindred created a joint venture with
Dignity Health to construct and operate a 50-bed inpatient
rehabilitation hospital in Chandler, Arizona, a suburb of Phoenix.
Subject to customary regulatory and other approvals, Kindred expects the
hospital to open by the fourth quarter of 2016.

Education and Corporate Citizenship

Clinical Impact Symposium – In November 2015, Kindred
conducted its seventh Annual Clinical Impact Symposium – Effective Care
Management: The Impact of Fall Prevention and Medication Management
Across the Continuum – attracting physicians, clinicians and therapists
from all divisions to learn from the nation’s leading experts in care
transitions across the continuum. By bringing together over 400
professionals from across the Kindred enterprise and from many different
disciplines, Kindred furthered its commitment to provide the best in
interdisciplinary care for its patients and customers.

Diversity Summit – In June 2015, Kindred conducted its
first national diversity and inclusion symposium in order to bring
together Company leaders and external speakers as the Company built
critical leadership skills on diversity best practices and inclusion.

Employee Training and Tuition Reimbursement – As part of the
Company’s commitment to attract, develop and retain outstanding talent
and to provide them with the training to continue to excel and grow
professionally, Kindred invested approximately $29 million in employee
training and approximately $3 million in tuition reimbursement in 2015.

Social Responsibility – Kindred’s commitment to its patients and
residents extends to helping raise money and awareness to fight the
diseases that most affect them and their loved ones. Throughout 2015,
Kindred employees nationwide participated in events and fundraisers
strengthening the Company’s state and national relationships with the
American Lung Association, the Alzheimer’s Association and the American
Heart Association. In November 2015, the American Lung Association
honored the Company for raising $1 million for the American Lung
Association since 2012. In the American Lung Association’s fiscal year
ending in 2015, Kindred and its employees raised more than $316,000
through organizing and participating in fundraising events. As a Silver
National Team for the Alzheimer’s Association’s “A Walk to End
Alzheimer’s,” 2015’s fundraising increased 16% to almost $150,000, the
number of teams increased 31% to more than 105 and the number of
participants increased 19%. Through Kindred’s national partnership with
the American Heart Association, the Company and 92 teams raised
approximately $96,000.

Awards

• In 2016, Kindred was named one of Fortune magazine’s Most Admired
  Healthcare Companies for the seventh time.
• James Mendez, Administrator at Kindred Hospital Dallas, was named 2015
  Young Healthcare Executive of the Year by the Dallas-Fort Worth
  Hospital Council Board of Trustees.
• Marianne Myers, Registered Nurse (“RN”) Unit Manager at Kindred
  Transitional Care and Rehabilitation – Birchwood Terrace in
  Burlington, Vermont, was named RN of the Year by the Vermont Health
  Care Association.
• Modern Healthcare magazine recognized Mr. Breier among the most
  influential leaders in healthcare.
• Six of the Company’s Nursing Centers received a 2015 Silver Quality
  Award from the American Health Care Association.
• Kindred Nursing and Rehabilitation – Mountain Valley, in Kellogg,
  Idaho, received a 2015 Qualis Health Idaho Quality Award. Kindred was
  one of four healthcare organizations from across the state recognized
  for their achievements in improving healthcare quality and outcomes.
  Kindred Nursing and Rehabilitation – Mountain Valley was honored for
  their project “Quality Assurance and Performance Improvement: from
  Theory to Practice, Implementing the Five Elements to Fall Reduction.”
• Tonia Bryant, Executive Director at Kindred Transitional Care and
  Rehabilitation – Elizabeth City in Elizabeth City, North Carolina,
  received a 2015 Eli Pick Facility Leadership Award from the American
  College of Health Care Administrators. The award recognizes
  administrators whose teams have achieved dimensions of organizational
  quality.
• Kindred Transitional Care and Rehabilitation – Eagle Pond in South
  Dennis, Massachusetts, received the 2015 Post-Acute Collaborative
  Participation Award from the Massachusetts Department of Public
  Health. The award recognizes post-acute facilities that participate in
  the Collaborative and have shown dedication in improving the care
  stroke patients receive in the post-hospital setting.
• Kindred’s Information Systems Department was awarded the CIO 100
  Award. This award honors 100 companies that demonstrate excellence and
  achievement in IT and innovation. Kindred was honored for its
  “Connecting the Care” strategy that focuses on the need to continue
  digitizing information in the Kindred enterprise and interconnect
  systems through the Kindred Health Information Exchange. Kindred was
  just one of five healthcare providers to receive this honor.
• Kindred Rehabilitation Hospital Clear Lake in Webster, Texas, earned
  The Joint Commission’s Gold Seal of Approval^® for Stroke
  Rehabilitation Hospital Certification. In addition, Kindred Hospital
  Tarrant County Arlington in Arlington, Texas, and Kindred Hospital
  Fort Worth Southwest in Fort Worth, Texas, each earned The Joint
  Commission’s Gold Seal of Approval^® for Pulmonary
  Rehabilitation Certification. The Gold Seal of Approval^® is
  a symbol of quality that reflects an organization’s commitment to
  providing safe and effective patient care.

About Kindred Healthcare

Kindred Healthcare, Inc., a top-90 private employer in the United
States, is a FORTUNE 500 healthcare services company based in
Louisville, Kentucky with annual revenues of approximately $7.2 billion⁽¹⁾.
At December 31, 2015, Kindred through its subsidiaries had approximately
102,000 employees providing healthcare services in 2,692 locations in 46
states, including 95 transitional care hospitals, 18 inpatient
rehabilitation hospitals, 90 nursing centers, 19 sub-acute units, 604
Kindred at Home home health, hospice and non-medical home care sites of
service, 100 inpatient rehabilitation units (hospital-based) and a
contract rehabilitation services business, RehabCare, which served 1,766
non-affiliated sites of service. Ranked as one of Fortune magazine’s
Most Admired Healthcare Companies for seven years, 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.
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Contacts

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