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LOUISVILLE, Ky.--([ BUSINESS WIRE ])--Kindred Healthcare, Inc. (the aCompanya or aKindreda) (NYSE:KND) today released a year-end recap of major achievements for the Company in 2011.

"Last year we continued to build on Kindredas track record for quality, patient safety and clinical outcomes across the post-acute continuum for patients and residents nationwide"

Kindredas dedication to quality and clinical performance is highlighted in the Companyas 2011 Quality and Social Responsibility Report, which outlines the Companyas commitment to advancing integrated care in local healthcare delivery systems throughout the United States. The report also recaps the Companyas aContinue the Carea strategy focusing on person-centered care coordination, and its progress in improving quality indicators, clinical outcomes and customer satisfaction across the post-acute continuum. The report is available at [ www.kindredhealthcare.com/our-company/our-quality ].

aLast year we continued to build on Kindredas track record for quality, patient safety and clinical outcomes across the post-acute continuum for patients and residents nationwide,a said Paul J. Diaz, Kindredas President and Chief Executive Officer. aIn 2012, we will advance our strategy to partner with health systems, physicians, managed care organizations, and acute care hospitals in local markets to better manage episodes of care and deliver on our promise of high-quality, person-centered healthcare.a

Major initiatives and highlights for Kindred in 2011 include:

Clinical Excellence

Kindred Outperforms National Benchmarks throughout the Enterprisea" In 2011, Kindredas long-term acute care (aLTACa) hospitals, nursing and rehabilitation centers, inpatient rehabilitation facilities and home health agencies outperformed national benchmarks in many key quality indicators such as ventilator-associated pneumonia rates in our hospitals, survey quality performance in our nursing and rehabilitation centers, national quality measures in homecare and discharge to community from inpatient hospital-based rehabilitation units.

Hospital Division Quality Improvinga" In 2011, Kindredas LTAC hospitals treated the sickest, most medically complex patients, discharging nearly 70% of patients home or to a lower level of care after an average length of stay of 28 days. From 2008 to 2011, rehospitalization rates were reduced by 8.4%.

Top-rated Nursing Center Divisiona" Our nursing and rehabilitation centers continue to outperform national and peer benchmarks on key quality indicators, including performance on government quality inspections. Throughout 2011 Kindred ranked first on these surveys compared with other large national providers. This top ranking is a result of a focused commitment to quality, improved patient outcomes, patient satisfaction and our teammates.

Patients Recovering Quickera" Despite caring for increasingly sicker patients year after year, over half of Kindredas patients in our nursing and rehabilitation centers return home on average in 32 days. Since 2008 Kindredas nursing and rehabilitation centers discharged 16% more patients home, decreased rehospitalization within 30 days of admission by 8.2%, and decreased the average length of a patient stay by 27%.

RehabCarea" Delivering rehabilitation services in the most sites nationwide,RehabCare provided intense physical, occupational, and speech-language therapies to approximately 471,000 patients and residents in 2011, helping them to achieve more than 76% improved function and independence from what they were able to do prior to our care.

Homecarea" PeopleFirst Homecare professionals delivered cost-effective critical nursing and rehabilitative services to ensure a seamless transition home and in 2011, outperformed national benchmarks for hospital admissions.

Patient Satisfaction Higha" Customer satisfaction remains high with 92% of the Companyas patients, residents and families indicating they would recommend Kindred again for care.

Driving Care Integrationa" Throughout 2011, Kindred built upon its significant and ongoing efforts to improve care coordination and management throughout an entire patient episode of care by focusing on pilots and partnerships, technology, physician engagement, and initiatives to reduce rehospitalizations to best manage a patientas entire episode of care, reduce costs, and improve clinical outcomes. Kindred advanced innovations in care coordination through its participation in a number of integrated care projects including bundling demonstrations, applying for innovation grants and partnerships with recently announced Accountable Care Organization Pioneers.

Increased Number of Net Clinical Employeesa" Already one of the nationas largest private employers with 77,800 employees, in 2011 Kindred increased the number of net clinical employees. The sum of these (excluding acquisitions) exceeds 3,000, including 900 new registered nurses, 330 licensed practical nurses, 1,115 certified nursing assistants, and 675 physical, occupational, and speech-language therapists.

Business Growth

Kindred Acquired RehabCarea" In June, Kindred completed its merger with RehabCare Group, Inc. making the Company the largest and most diversified post-acute healthcare services provider in the United States. The merger added 32 LTAC hospitals, five inpatient rehabilitation facilities, 102 inpatient hospital-based rehabilitation units, a robust contract rehabilitation services business and approximately 20,000 new employees to the Kindred team.

Growing Our Homecare and Hospice Divisiona" In 2011, Kindred expanded its homecare and hospice operations with several acquisitions including the California operations of CareSouth HHA Holdings, LLC, a home health company; Professional HealthCare, LLC, a provider of home health, hospice, private duty nursing services and durable medical equipment in northern California, Arizona, Nevada and Utah; and Synergy Home Health Care, Inc., a provider of home health services in Massachusetts.

New Facilitiesa" Kindred opened Kindred Transitional Care and Rehabilitation Center a" Bridgewater a" a new 120-bed Transitional Care Center (licensed for skilled nursing care) specializing in intensive short-term rehabilitation in Westfield, Indiana, north of Indianapolis. The Company also opened Kindred Hospital Seattle-First Hill, a 50-bed freestanding LTAC hospital with six intensive care unit beds and a 30-bed co-located sub-acute unit.

Future Growtha" Kindred announced plans to build new and expanded replacement LTAC hospitals in Charleston, South Carolina and Dayton, Ohio, a replacement inpatient rehabilitation hospital (aIRHa) in Austin, Texas, and plans for a new IRH in Humble, Texas, a northeastern suburb of Houston. The Charleston, Dayton and Austin projects are scheduled to open in 2012. The Humble hospital opened earlier this month. The new Charleston hospital will be larger, have more private rooms, will be better equipped and will have a 35-bed co-located sub-acute unit. The new Dayton hospital will also be larger, have more private rooms, will be better equipped and will have a 34-bed co-located sub-acute unit. The 50-bed Austin IRH will be freestanding and is replacing a 20-bed facility that Kindred currently operates within Seton Medical Center Austin a few blocks south of the new site. The 46-bed Humble IRH features all private rooms and approximately 6,000 square feet of therapy space, with rehabilitative technology, a therapy pool and programs for patients with complex physical and cognitive needs.

Education and Corporate Citizenship

Clinical Impact Symposiuma" In December 2011, Kindred conducted its 3rd Annual Clinical Impact Symposium a" Cardio-Pulmonary Rehabilitation Across the Continuum a" attracting physicians, clinicians and therapists from all divisions to learn from the nationas leading experts in cardio-pulmonary diseases and rehabilitation. By bringing together over 350 professionals from across the Kindred enterprise and from many different disciplines, Kindred furthered its commitment to provide the best in interdisciplinary care for our patients and customers.

Employee Training and Tuition Reimbursement a" As part of the Companyas commitment to attract, develop and retain outstanding talent and to provide the training to continue to excel and grow professionally, Kindred invested $34.7 million in employee training and $2.4 million in tuition reimbursement in 2011.

Social Responsibility a" Kindredas 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 2011, employees nationwide participated in events and fundraisers strengthening the Companyas state and national relationships with the American Lung Association, Alzheimeras Association and the American Heart Association.

Awards

• 2011 Fortuneas Most Admired Companies a" Kindred ranked among the Most Admired Healthcare Companies for the third year in a row.
• Kindred Nursing and Rehabilitation a" Mountain Valley in Kellogg, Idaho, received a Gold - Excellence in Quality Award presented by the American Health Care Association and National Center for Assisted Living (aAHCA/NCALa). Mountain Valley is the only 2011 recipient of this distinguished national award, and one of only 11 long-term care providers to have ever received an award at this level. In addition, 14 of Kindredas nursing and rehabilitation centers and one assisted living facility were named recipients of 2011 AHCA/NCAL Silver or Bronze National Quality Awards for demonstrating a strong commitment to quality improvement. Since 2003, over 90% of all Kindred nursing and rehabilitation centers have earned a National Quality Award.
• In 2011, 18 of Kindredas nursing and rehabilitation centers received My InnerViewas aExcellence in Actiona awards, which recognizes superior customer and workforce satisfaction.
• InformationWeekas list of the top 25 healthcare information technology leaders a" Rick Chapman, Kindredas Executive Vice President, Chief Information Officer and Chief Administrative Officer, was named to the list due, in part, to his work as one of 20 members of the federal Health IT Policy Committee, which advises the U.S. Department of Health and Human Servicesa Office of the National Coordinator for Health IT on meaningful use and other Health Information Technology for Economic and Clinical Health programs.
• Kindred has been listed on the InformationWeek 500 for the past 13 years, competing based on innovative use of technology to improve business results.
• 2011 Modern Healthcare a100 Most Influential People in Healthcarea a" For the fourth consecutive year, Modern Healthcare recognized Paul J. Diaz among the most influential leaders in healthcare.
• The National Alzheimeras Association named Kindred as Corporate Honoree for 2011 at the Alzheimeras Association Chicago Rita Hayworth Gala. The Alzheimeras Association annually recognizes a company or organization for their support and dedication in the fight against Alzheimeras disease.

About Kindred Healthcare

Kindred Healthcare, Inc., a top-150 private employer in the United States, is a healthcare services company based in Louisville, Kentucky with annual revenues of $6 billion and approximately 76,900 employees in 46 states. At September 30, 2011, Kindred through its subsidiaries provided healthcare services in over 2,250 locations, including 120 long-term acute care hospitals, five inpatient rehabilitation hospitals, 224 nursing and rehabilitation centers, 23 sub-acute units, 47 hospice and homecare locations, 102 inpatient rehabilitation units (hospital-based) and a contract rehabilitation services business, RehabCare, which served approximately 1,740 non-affiliated facilities. Ranked as one of Fortune magazineas Most Admired Healthcare Companies for three years in a row, Kindredas 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 ].