Profile: Kindred Healthcare Inc (KND)

Kindred Healthcare, Inc., incorporated on March 27, 1998, is a healthcare services company that through our subsidiaries operates long-term acute care (LTAC) hospitals, inpatient rehabilitation hospitals (IRFs), nursing and rehabilitation centers, assisted living facilities, a contract rehabilitation services business and a home health and hospice business across the United States. The Company operates in four divisions: the hospital division, the nursing center division, the rehabilitation division, and the home health and hospice division. On June 1, 2011, the Company acquired RehabCare Group, Inc. and its subsidiaries (RehabCare) (the RehabCare Merger). On June 1, 2011, it also acquired 32 LTAC hospitals, 5 IRFs, approximately 1,200 rehabilitation therapy sites of service and 102 hospital-based inpatient rehabilitation units. On September 1, 2011, it acquired Professional HealthCare, LLC, a home health and hospice company. In September 2012, its subsidiary acquired IntegraCare Holdings, Inc. In December 2012, the Company acquired Homecare Advantage, Inc.

In October 2011, the Company acquired Synergy Home Health Care, Inc. (Synergy). In December 2011, the Company announced the opening of a hospital in Seattle, Washington, and the relocation of an existing hospital in the Las Vegas, Nevada, market.

HOSPITAL DIVISION

As December 31, 2011, the Company’s hospital division operated 121 LTAC hospitals (8,597 licensed beds) and five IRFs (183 licensed beds) in 26 states. The Company’s hospital division provides long-term acute care services to medically complex patients through the operation of a national network of 121 LTAC hospitals with 8,597 licensed beds and 5 IRFs with 183 licensed beds in 26 states as of December 31, 2011. It operates the network of LTAC hospitals and IRFs in the United States. . A number of the hospital division’s hospitals also provide skilled nursing, sub-acute and outpatient services. Outpatient services may include diagnostic services, rehabilitation therapy, computerized tomography (CT) scanning, one-day surgery and laboratory. During 2011, the average length of stay for patients in its hospitals was approximately 28 days. Its IRFs provide services to patients who require intensive inpatient rehabilitative care. Its IRFs provide an interdisciplinary approach to treatment that leads to a higher level of care and superior outcomes. The medical, nursing, therapy, and ancillary services provided by its IRFs comply with local, state, and federal regulations, as well as other accreditation standards.

NURSING CENTER DIVISION

As of December 31, 2011, the Company’s nursing center division operated 224 nursing and rehabilitation centers (27,148 licensed beds) and 6 assisted living facilities (413 licensed beds) in 27 states. Its nursing center division provides care through the operation of a national network of 224 nursing and rehabilitation centers (27,148 licensed beds) and 6 assisted living facilities (413 licensed beds) located in 27 states as of December 31, 2011. Through its nursing and rehabilitation centers, it provides short stay patients and long stay residents with a range of medical, nursing, rehabilitative, pharmacy and routine services, including daily dietary, social and recreational services. It operates transitional care units at 95 of its nursing and rehabilitation centers. These units within its nursing and rehabilitation centers typically consist of 20 to 50 beds offering skilled nursing services and a range of rehabilitation services, including physical, occupational and speech therapy to patients recovering from a variety of surgical procedures, such as joint replacements, amputations, bariatric procedures, wound closure/repair procedures, as well as medical conditions, such as stroke, and cardiac and respiratory ailments.

At a number of the Company’s nursing and rehabilitation centers, it offers specialized programs for residents with Alzheimer’s disease and other dementias through its Reflections units. It has developed specific certification criteria for these units.

REHABILITATION DIVISION

The Company’s rehabilitation division provides rehabilitation services, including physical and occupational therapies and speech pathology services, to residents and patients of nursing centers, acute and LTAC hospitals, outpatient clinics, home health agencies, assisted living facilities, school districts and hospice providers under the name RehabCare. It is organized into two operating segments: skilled nursing rehabilitation services (SRS) and hospital rehabilitation services (HRS). Its SRS operations provide contract therapy services primarily to freestanding skilled nursing centers. As of December 31, 2011, its SRS segment provided rehabilitative services to 1,774 nursing centers in 44 states. Its HRS operations provide program management and therapy services on an inpatient basis in hospital-based inpatient rehabilitation units, LTAC hospitals, sub-acute (or skilled nursing) units, as well as on an outpatient basis to hospital-based and other satellite programs. As of December 31, 2011, its HRS segment operated 102 hospital-based inpatient rehabilitation units and provided rehabilitation services in 115 LTAC hospitals, 25 sub-acute (or skilled nursing) units, and 115 outpatient clinics.

As of December 31, 2011, SRS managed 1,774 contract therapy programs. SRS provides specialized rehabilitation programs designed to meet the individual needs of the residents and patients it serves. Its specialized care programs address complex medical needs, such as wound care, pain management, and cognitive retraining, in addition to programs for neurologic, orthopedic, cardiac and pulmonary conditions, such as stroke, fractures and other orthopedic conditions. It also provide clinical education and programming.

The Company’s HRS operations provide program management and therapy services on an inpatient basis in hospital-based inpatient rehabilitation units, LTAC hospitals, sub-acute (or skilled nursing) units, as well as on an outpatient basis to hospital-based and other satellite programs. It is an operator of hospital-based inpatient rehabilitation units on a contract basis. As of December 31, 2011, it managed 102 hospital-based inpatient rehabilitation units. The hospital-based inpatient rehabilitation units it operates provide acuity rehabilitation for patients recovering from strokes, orthopedic conditions and head injuries.

The Company provides rehabilitation and program management services, including physical and occupational therapies and speech pathology services, to LTAC hospitals. It provides specialized care programs that support patients with medical needs, such as wound care, pain management and cognitive deficits, in addition to programs for neurologic, orthopedic, cardiac and pulmonary recovery. As of December 31, 2011, it managed 25 sub-acute (or skilled nursing) units. It also manage outpatient therapy programs that provide therapy services to patients with a variety of orthopedic and neurological conditions that may be related to work or sports injuries. As of December 31, 2011, it managed 115 hospital-based and satellite outpatient therapy programs.

HOME HEALTH AND HOSPICE DIVISION

The Company’s home health and hospice division provides home health, hospice and private duty services to patients in a variety of settings, including homes, skilled nursing facilities and other residential settings. As of December 31, 2011, its home health and hospice division operated 51 locations in 8 states, employing approximately 2,100 caregivers to serve the needs of over 4,800 patients on a daily basis. Its home health operations offer medical care and other services to patients in their homes or other residential settings. It services include nursing, physical, occupational and speech therapies, and medical social work. Its hospice operations provide a family-oriented model of care designed to meet the spiritual, emotional and physical needs of terminally ill patients and their families. Hospice services are provided in the home or in other settings, such as nursing centers, assisted living facilities and hospitals. Its private duty services include personal care (bathing and grooming), meal preparation, light housekeeping, respite care and transportation.