Kindred Healthcare Supports Introduction of H.R. 562, Medicare Long-Term Care Hospital Improvement Act, by English and Pomeroy That Would Require Certification Criteria for LTAC Hospitals

Business Wire, Jan 19, 2007

Praising Bill, Kindred Healthcare Characterizes Efforts as Comprehensive Step Toward Ensuring That the Most Medically Complex Patients Have Access to LTAC Hospitals

LOUISVILLE, Ky. -- Paul J. Diaz, President and Chief Executive Officer of Kindred Healthcare, Inc. (NYSE: KND), today praised U.S. Representative Phil English (R-PA) and U.S. Representative Earl Pomeroy (D-ND) for their leadership in introducing a bipartisan bill (H.R. 562) that would create certification criteria for the nation's long-term acute care ("LTAC") hospitals.

"Congressmen English and Pomeroy should be commended for proposing legislation that implements MedPAC's recommendation, now over two years old, to define LTACs by the medically complex patients we serve. As the nation's largest provider of post-acute services that includes LTAC hospitals and skilled nursing facilities, Kindred has long supported the policy goal of making sure that Medicare patients are treated in the most appropriate, cost-effective setting. LTAC hospitals offer unique and much needed services to Medicare's most medically complex beneficiaries. The English-Pomeroy bill goes a long way toward achieving the goal of ensuring that these medically complex patients have access to LTAC hospitals and at the same time would reduce Medicare expenditures by ensuring that patients who don't need LTAC services are effectively treated in lower cost settings such as inpatient rehabilitation facilities (IRFs) and skilled nursing facilities. That's just good policy." Mr. Diaz added, "Private payers understand the value of our LTACs from a clinical and economic standpoint as evidenced by the significant growth we have seen in managed care and other private patients seeking our services. The English-Pomeroy Bill would better define the appropriate role for LTACs in Medicare."

Mr. Diaz further stated, "We have strongly advocated the development of clinically based LTAC hospital and patient certification criteria, along with enforcement of existing rules, as a more rationale way to address LTAC hospital policy issues rather than arbitrary payment cuts. We call upon CMS to work together with Congress, providers and patients to pass this legislation. We will continue to ensure Medicare beneficiaries who need LTAC hospital services receive high quality, patient-centered care in the most clinically appropriate and cost-effective setting."

About Kindred Healthcare

Kindred Healthcare, Inc. (NYSE: KND) is a Fortune 500 healthcare services company, based in Louisville, Kentucky, with annualized revenues of $4.3 billion that provides services in over 500 locations in 39 states. Kindred through its subsidiaries operates long-term acute care hospitals, skilled nursing centers, institutional pharmacies and a contract rehabilitation services business, Peoplefirst Rehabilitation Services, across the United States. Kindred's 55,000 employees are committed to providing high quality patient care and outstanding customer service to become the most trusted and respected provider of healthcare services in every community we serve. For more information, go to www.kindredhealthcare.com.