Kindred Healthcare, Inc. (“Kindred” or the “Company”) (NYSE:KND)
today announced that its Board of Directors approved the payment of
the regular quarterly cash dividend to its shareholders. The
quarterly cash dividend of $0.12 per common share will be paid on
September 10, 2014 to shareholders of record as of the close of
business on August 20, 2014. Future declarations of quarterly
dividends will be subject to the approval of Kindred’s Board of
Directors.
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 potential acquisition of
Gentiva Health Services, Inc. (“Gentiva”) (NASDAQ:GTIV) (including
financing of the proposed transaction and the benefits, results,
effects and timing of such transaction), and 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,”
“potential” 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, performance or plans to differ
materially from any future results, performance or plans 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 Company’s ability to adjust to the new patient
criteria for long-term acute care (“LTAC”) hospitals under the
Pathway for SGR Reform Act of 2013, which will reduce the
population of patients eligible for the Company’s hospital services
and change the basis upon which the Company is paid, (c) the impact
of the 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, (d) the impact of the 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, (e) the
impact of the Budget Control Act of 2011 (as amended by the
American Taxpayer Relief Act of 2012 (the “Taxpayer Relief Act”))
which instituted an automatic 2% reduction on each claim submitted
to Medicare beginning April 1, 2013, (f) the costs of
defending and insuring against alleged professional liability and
other claims and investigations (including those related to pending
investigations and 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 and
investigations, including the impact of differences in actuarial
assumptions and estimates compared to eventual outcomes, (g) the
impact of the Taxpayer Relief Act which, among other things,
reduces Medicare payments by an additional 25% 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 its Medicare revenues by
$25 million to $30 million on an annual basis, (h) 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, (i) 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, (j)
the ability of the Company’s hospitals and nursing centers to
adjust to medical necessity reviews, (k) the impact of the
Company’s significant level of indebtedness on its funding costs,
operating flexibility and ability to fund ongoing operations,
development capital expenditures or other strategic acquisitions
with additional borrowings, (l) 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, (m) 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, (n) the failure of the Company’s
facilities to meet applicable licensure and certification
requirements, (o) the further consolidation and cost containment
efforts of managed care organizations and other third party payors,
(p) the Company’s ability to meet its rental and debt service
obligations, (q) the Company’s ability to operate pursuant to the
terms of its debt obligations, and comply with its covenants
thereunder, and the Company’s ability to operate pursuant to its
master lease agreements with Ventas, Inc. (NYSE:VTR), (r) 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,
(s) the Company’s ability to control costs, particularly labor and
employee benefit costs, (t) the Company’s ability to successfully
reduce (by divestiture of operations or otherwise) its exposure to
professional liability and other claims, (u) 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, (v) national, regional and
industry-specific 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 the last three fiscal
years, (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),
(bb) the Company’s ability to maintain an effective system of
internal control over financial reporting, (cc) the Company’s
ability to realize the anticipated operating and financial
synergies from the potential acquisition of Gentiva, (dd) the
uncertainties as to whether Gentiva or any other companies that the
Company may acquire will have the accretive effect on the Company’s
earnings or cash flows that are expected, and (ee) the outcome of
the potential acquisition of Gentiva, including the Company’s
ability to realize the strategic rationale behind the Gentiva
acquisition.
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
developments.
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 $5 billion and
approximately 63,000 employees in 47 states. At June 30, 2014,
Kindred through its subsidiaries provided healthcare services in
2,353 locations, including 97 transitional care hospitals, five
inpatient rehabilitation hospitals, 98 nursing centers, 21
sub-acute units, 153 Kindred at Home hospice, home health and
non-medical home care locations, 104 inpatient rehabilitation units
(hospital-based) and a contract rehabilitation services business,
RehabCare, which served 1,875 non-affiliated facilities. Ranked as
one of Fortune magazine’s Most Admired Healthcare Companies for six
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 www.kindredhealthcare.com. You
can also follow us on Twitter and Facebook.
Kindred Healthcare, Inc.Stephen Farber, 502-596-2525Executive
Vice President, Chief Financial Officer
Kindred Healthcare (NYSE:KND)
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