Kindred Healthcare, Inc. (“Kindred” or the “Company”) (NYSE:KND) today released the 2014 edition of its Quality and Social Responsibility Report as it further highlights major achievements for the year.

The report highlights Kindred’s commitment to provide effective patient-centered care solutions in order to make wellness and recovery possible for more than one million people each year as it also details outcomes that exceeded national benchmarks in key clinical and quality measures. This year’s report also recaps Kindred’s success in transforming operations and capabilities in order to deliver care where and when people need it most. The enhanced care platform spans the full continuum of post-acute services, helping to manage and coordinate patient care in the most appropriate setting according to clinical needs. The report is available at www.kindredhealthcare.com/our-company/our-quality.

“Throughout 2014, we took major steps to transform our Company to provide patient-centered care management and develop solutions for an aging America,” said Benjamin A. Breier, Kindred’s President and Chief Executive Officer. “Kindred’s enhanced care delivery platform also features strong relationships and partnerships with some of the nation’s premier health systems, hospitals and physician practices so that we can best meet patient needs and manage care across the continuum.”

“We are proud of our dedicated teammates and their ability to drive strong quality outcomes, improved clinical care and a better patient experience in more than 2,800 care settings across the United States,” continued Mr. Breier. “We thank our caregivers and colleagues throughout our organization who delivered on Kindred’s promise of hope, healing and recovery as they worked to advance our Mission in spite of a challenging operating environment.”

Major initiatives and highlights for Kindred in 2014 include:

Clinical Excellence

Investing in Patient-Centered Integrated Care – Kindred is expanding its capacity and expertise in delivering post-acute care across a continuum of care settings – from hospital to home – to enable the best in care coordination and clinical outcomes. Kindred’s Integrated Care Market strategy recognizes the need for all Kindred service lines to partner with healthcare networks, managed care providers and other healthcare entities in local markets to best meet patient needs, drive down costs and improve care outcomes.

Smoothing Transitions Between Care Settings – In 2014, Kindred expanded its Care Transitions Manager program to follow patients with specific diagnoses and/or risk factors through the entire care continuum in key markets. The program follows the patient throughout his or her stay at a Kindred Transitional Care Hospital, Nursing and Rehabilitation Center or at home with Kindred at Home until 35 days after discharge. Kindred’s Care Transitions Program is active in Boston, Cleveland, Dallas, Indianapolis and Las Vegas with plans to expand the program across the Company’s growing Integrated Care Markets.

Home Health and Hospice – In 2014, 50% of Kindred at Home’s home health locations were named to the HomeCare Elite list of the most successful home care providers. This annual review identifies the top 25% of Medicare-certified agencies and further highlights the top 100 and top 500 agencies overall. Winners are ranked by an analysis of publicly available performance measures in quality outcomes, process measure implementation, patient experience (Consumer Assessment of Healthcare Providers and Systems Home Health Care Survey), quality improvement, and financial performance. Kindred at Home home health and hospice locations outperformed national benchmarks in key quality measures, including patient satisfaction.

Kindred House Calls – Driving Care Management – As part of Kindred’s effort to facilitate physician coverage across sites of care, and in delivering preventative care to avoid hospitalizations, Kindred House Calls provides home-based primary care and select specialty services over an extended period of time for patients who cannot easily access traditional outpatient care settings. In 2014, Kindred House Calls served a high-risk population typically about 86 years of age with an average of 20 diagnoses, and seven chronic conditions at risk of exacerbation. A Medicare cost data pilot project found the group’s care was associated with significant cost savings over traditional care models, and for the seventh year in a row achieved a 30-day readmission rate below 7%.

Reducing Rehospitalizations – From 2010 to 2014, Kindred reduced rehospitalizations from its Transitional Care Hospitals by 4.1% and by 5.1% in its Nursing and Rehabilitation Centers. From 2013 to 2014, Kindred at Home improved hospitalization rates by 8.9%.

Lowering Average Lengths of Stay – From 2010 to 2014, Kindred reduced the total average length of stay in its Transitional Care Hospitals by 8.4% and by 15.2% in its Nursing and Rehabilitation Centers. In 2014, Kindred’s Transitional Care Hospitals treated the most seriously ill and medically complex patients, discharging more than 69% of patients home or to a lower setting of care after an average length of stay of 27.1 days. In 2014, Kindred’s Nursing and Rehabilitation Centers discharged 57% of patients home – after an average stay of less than 31 days.

Inpatient Rehabilitation Facilities – In 2014, patients in Kindred’s freestanding Inpatient Rehabilitation Hospitals achieved 24.2% greater functional improvement than the national average.

RehabCare – In 2014, RehabCare helped more than 524,000 patients achieve greater than 80% increase in function from prior to their illness or injury, enabling them to transition home or to a less acute setting.

Contact Center

Kindred created 1-866-KINDRED, which is a Contact Center staffed by nurses. Families who need help navigating care for their loved ones when they leave the hospital can receive assistance. Whether someone needs care for aging parents, rehabilitative services after an illness or surgery or care in the home, Kindred’s nurses can provide answers and help guide consumers to the services that exist within their local communities.

Business Growth

Gentiva Health Services, Inc. (“Gentiva”) – In October 2014, Kindred announced it had signed a definitive agreement to acquire Gentiva, further enhancing Kindred’s industry leading position as the Nation’s premier post-acute and rehabilitation services provider and making Kindred at Home the largest and most geographically diversified Home Health and Hospice organization in the United States. The acquisition was completed in February 2015.

Centerre Healthcare Corporation (“Centerre”) – In November 2014, Kindred announced a definitive agreement to acquire Centerre, a national company dedicated to operating Inpatient Rehabilitation Hospitals. Centerre operated 11 Inpatient Rehabilitation Hospitals with 614 beds in partnership with some of the nation’s leading acute care hospital systems. Centerre has two additional hospitals with a total of 90 beds under construction and scheduled to open in 2015, and a pipeline of additional potential hospitals in various stages of development. Kindred acquired Centerre in January 2015.

New Facility – In August 2014, Kindred opened a 100-bed Transitional Care Center (“TCC”) (licensed for skilled nursing care) in Indianapolis, Indiana.

Future Growth – Kindred is developing new TCCs in Las Vegas, Nevada (160 beds) and Phoenix, Arizona (120 beds), each of which should open in the second half of 2015.

Silver State ACO – In May 2014, Kindred became a strategic partner and owner in the Silver State Accountable Care Organization, LLC (“Silver State”) in Las Vegas, Nevada. Silver State was approved by the Centers for Medicare and Medicaid Services as a 2014 “shared savings” Accountable Care Organization (“ACO”). Silver State covers the lives of 15,000 Medicare fee-for-service beneficiaries through the coordinated care from more than 250 physicians and other affiliated healthcare providers to more effectively manage the patients’ experience across the entire episode of care through a population health model.

Education and Corporate Citizenship

Clinical Impact Symposium – In November 2014, Kindred conducted its sixth Annual Clinical Impact Symposium – Clinical Excellence in the Care of the Stroke Patient 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.

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 $25 million in employee training and approximately $3 million in tuition reimbursement in 2014.

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 2014, 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 2014, Kindred entered its third year as a national corporate team partner with the American Lung Association. During the second year of our partnership, Kindred contributed more than $415,000 through fundraising and sponsorships. As a Gold National Team for the Alzheimer’s Association’s “A Walk to End Alzheimer’s,” Kindred had over 80 teams that raised close to $150,000 for the cause. Through Kindred’s national partnership with the American Heart Association, the Company and 66 teams raised approximately $110,000.

Awards

  • Dr. William Mills, President of Kindred House Calls, was elected to the American Academy of Home Care Medicine’s Board of Directors.
  • For the seventh consecutive year, Modern Healthcare magazine recognized Paul J. Diaz, Executive Vice Chairman of Kindred’s Board of Directors, among the most influential leaders in healthcare.
  • Kindred ranked 77th on the InformationWeek Elite 100 – a list of the top business technology innovators in the United States. Kindred was one of 17 healthcare and medical organizations on the list.
  • One of the Company’s Nursing and Rehabilitation Centers received a 2014 Silver Quality Award from the American Health Care Association (“AHCA”) and one of the Company’s Nursing and Rehabilitation Centers received a 2014 Bronze Award.
  • Steve Cunanan, Kindred’s Chief Administrative Officer and Chief People Officer, ranked 168th on a list of top Human Resources executives, according to ExecRank, Inc.
  • Pedram Taher, M.D., Medical Director at Kindred Transitional Care and Rehabilitation – Walnut Creek in Walnut Creek, California, was named Hospitalist of the Year for a post-acute care practice by IPC The Hospitalist Company, Inc., a leading national physician group practice company. Dr. Taher is a Practice Group Leader in IPC’s Bay Area, California Region.
  • Mr. Diaz was named one of Modern Healthcare’s Top 25 Minority Executives in Healthcare.
  • Ray Sierpina, Kindred’s Senior Vice President of Public Policy and Government Affairs, received the Joe Warner Patient Advocacy Award from AHCA. The annual award recognizes individuals who possess the compassion and commitment to the patients and residents benefitting from the medical care and rehabilitation services provided in the nation’s nursing facilities – consistent with the advocacy efforts exemplified by the late Joe Warner, the former President and CEO of Illinois based Heritage Enterprises.
  • Kindred Nursing and Rehabilitation – Golden Gate in San Francisco, California, was recognized by the American Health Care Association and National Center for Assisted Living for achieving four quality goals. Golden Gate reduced hospital readmissions by 15%, increased staff stability by reducing nursing turnover by 15%, achieved customer satisfaction of 90% or higher, and reduced off-label use of anti-psychotic medications by 15%.
  • For the second year in a row, the staff at Kindred Assisted Living – Village Crossings in Cape Elizabeth, Maine, won a “Superior Satisfaction” award from the Excellence in Action Awards. These awards recognize skilled nursing homes, assisted living, and independent living communities that achieve outstanding resident and/or employee satisfaction.

About Kindred Healthcare

Kindred Healthcare, Inc., a top-85 private employer in the United States, is a FORTUNE 500 healthcare services company based in Louisville, Kentucky with annual revenues of approximately $7.2 billion1. At December 31, 2014, on a pro forma basis to include Gentiva and Centerre, Kindred through its subsidiaries had approximately 103,000 employees providing healthcare services in 2,872 locations in 47 states, including 97 transitional care hospitals, 16 inpatient rehabilitation hospitals, 90 nursing centers, 22 sub-acute units, 634 Kindred at Home hospice, home health and non-medical home care locations, 100 inpatient rehabilitation units (hospital-based) and a contract rehabilitation services business, RehabCare, which served 1,913 non-affiliated facilities. Ranked as one of Fortune magazine’s Most Admired Healthcare Companies for six 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.

1Revenues were computed by combining the twelve months ended December 31, 2014 data for Kindred, Gentiva and Centerre.

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

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