Kindred Reviews 2016 Accomplishments

Kindred Healthcare, Inc. (“Kindred” or the “Company”) (NYSE:KND) today released a summary of some of its major achievements in 2016.

“In 2016, we made significant progress in our continuing efforts to grow the Company and improve our quality outcomes across our care settings,” said Benjamin A. Breier, Kindred’s President and Chief Executive Officer. “We are setting the foundation for a stronger Kindred as we drive effective patient-centered care solutions and proactively address the changing healthcare marketplace.”

Major 2016 highlights include:

Partnerships with Leading Health Systems In 2016, Kindred announced four new partnerships with leading health systems across the country to build and operate inpatient rehabilitation hospitals in California (with Palomar Health), Iowa (with Mercy Medical Center-Des Moines), New Jersey (with Atlantic Health System) and Washington (with CHI Franciscan Health). Three of the four hospitals are scheduled to open in 2018 and the California facility is expected to open in 2019. In January 2016, Kindred opened its second inpatient rehabilitation hospital in the Cleveland area in partnership with University Hospitals. In October 2016, Kindred opened a new inpatient rehabilitation hospital in Chandler, Arizona, a suburb of Phoenix, in partnership with Dignity Health.

Kindred at Home Kindred continued to expand its home health, hospice and personal care services through organic growth and the acquisition of existing agencies and licenses to provide services. Kindred acquired the in-home healthcare operations from the Arkansas Department of Health, which included licenses to provide home health, hospice and personal care services throughout the state. In South Carolina, Kindred at Home also acquired licenses to provide home health services across the entire state. In total, Kindred at Home added over 40 new sites of service in 2016 through acquisitions and start-ups.

Fortune Most Admired In 2016, Kindred was named one of Fortune magazine’s Most Admired Healthcare Companies for the seventh time.

Kindred and its facilities have been recognized for their efforts to improve quality patient care, which include the following:

Quality Care

Baldrige Award Kindred Nursing and Rehabilitation Center - Mountain Valley in Kellogg, Idaho, is one of four recipients of the 2016 Malcolm Baldrige National Quality Award, the nation’s most prestigious recognition for performance excellence. Mountain Valley is the first nursing center to receive a Baldrige Award in the program’s history.

Kindred at Home – In 2016, 132 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, in the Centers for Medicare and Medicaid Services’ (“CMS”) Five-Star Rating System, which recognizes the highest quality care, 269 Kindred at Home home health locations had four or more stars for quality of patient care and 271 locations had four or more stars for patient satisfaction with home healthcare. Additionally, in 2016, our personal home care assistance locations significantly outperformed national benchmarks in client satisfaction.

Comprehensive Primary Care Plus – Kindred House Calls, the Company’s Home-Based Primary Care (“HBPC”) practice, is one of more than 2,900 primary care practices nationwide participating in Comprehensive Primary Care Plus, a partnership between payor partners from CMS, state Medicaid agencies, commercial health plans, self-insured businesses and primary care providers. This partnership is designed to provide improved access to quality healthcare at lower costs. Kindred House Calls is one of the largest HBPC practices in the nation, with approximately 100 practitioners providing care to more than 10,000 patients annually in 12 markets in five states.

Medicare Shared Savings Program – In August 2016, CMS announced that the Las Vegas, Nevada-based Silver State Accountable Care Organization (“ACO”), of which Kindred is a strategic owner and partner, was among only 22% of the nation’s Medicare Shared Savings ACOs that generated savings for the 2015 performance year. When an ACO exceeds quality and financial thresholds – demonstrating achievement of high-quality care and wiser spending of healthcare dollars – it is able to share in the savings generated for Medicare.

Education and Corporate Citizenship

Clinical Impact Symposium In November 2016, Kindred conducted its eighth Annual Clinical Impact Symposium – Pain Management: Across the Continuum – attracting educators, physicians, clinicians and therapists from all divisions to learn from the nation’s leading experts on pain management. By bringing together over 300 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.

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 2016, 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. Together raising nearly $700,000 across the country, Kindred fights to bring awareness to the diseases that our patients experience.

Awards and Achievements

  • Modern Healthcare magazine recognized Mr. Breier among the most influential leaders in healthcare.
  • Texas Rehabilitation Hospital of Fort Worth, Texas, ranked eighth on Fortune’s list of the 100 Best Workplaces for Women. Texas Rehabilitation Hospital is a partnership of Kindred Rehabilitation Services and Texas Health Resources. In addition, the hospital ranked 23rd on a Fortune list of 100 Best Medium Workplaces. Medium Workplaces are for employers with between 100 and 999 employees.
  • The staff at Kindred Hospital Seattle - First Hill in Seattle, Washington, was included on the State Department of Health’s 2016 Honor Roll for Antimicrobial Stewardship. The honor commends facilities where the staff is working to improve antibiotic use, reduce antibiotic resistance and improve patient outcomes.
  • Three of the Company’s nursing centers and one assisted living facility received a 2016 Silver Quality Award from the American Health Care Association and National Center for Assisted Living. In addition, one nursing center and one sub-acute unit received a 2016 Bronze Award. One of the Silver Award recipients, Kindred Living at Village Crossings in Cape Elizabeth, Maine, received the Maine Health Care Association 2016 Celebrating Excellence in Quality Award. The awards are given annually to long-term care providers that are making significant strides toward achieving and maintaining quality.
  • Kindred Nursing and Rehabilitation - Golden Gate in San Francisco, California, was one of five recipients of the California Awards for Performance Excellence Eureka Award, as presented by the California Council for Excellence. Honorees are recognized based on the Baldrige Framework for Performance Excellence for their outstanding commitment to sustainable excellence through innovation, continuous improvement and visionary leadership.
  • Kindred Transitional Care and Rehabilitation - Park Place in Great Falls, Montana, received the Recognition of Excellence Award from Mountain-Pacific Quality Health. CMS supports the National Nursing Home Quality Care Collaborative (“NNHQCC”) through the Quality Improvement Organization program. Mountain-Pacific Quality Health is the local facilitator for Montana. The NNHQCC’s goals are to instill quality and performance improvement practices, eliminate healthcare-acquired conditions and improve resident satisfaction. As a measure to reflect achievement of these goals, CMS created a “composite score” system to assess quality of care based on 13 quality measures. The awards are based on each facility’s composite score, its licensure with the Office of Healthcare Licensing and Survey (Montana’s state survey agency) and its certification with CMS.

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). As of October 1, 2016, Kindred through its subsidiaries had approximately 102,200 employees providing healthcare services in 2,702 locations in 46 states, including 82 long-term acute care hospitals, 19 inpatient rehabilitation hospitals, 91 nursing centers, 19 sub-acute units, 647 Kindred at Home home health, hospice and non-medical home care sites of service, 104 inpatient rehabilitation units (hospital-based) and contract rehabilitation service businesses which served 1,740 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. You can also follow us on Twitter and Facebook.

(1) Revenues based upon Kindred consolidated revenues for the twelve months ended September 30, 2016.

Contacts:

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

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