Profile: Kindred Healthcare, Inc. (KND.N)

Kindred Healthcare, Inc. is a healthcare services company that through its subsidiaries operates hospitals, nursing centers and a contract rehabilitation services business across the United States. As of December 31, 2008, the Company's hospital division operated 82 long-term acute care (LTAC) hospitals (6,482 licensed beds) in 24 states. Kindred Healthcare's health services division operated 228 nursing centers (28,525 licensed beds) in 27 states. The Company also operated a contract rehabilitation services business that provides rehabilitative services primarily in long-term care settings. Kindred Healthcare is organized into three operating divisions: the hospital division, the health services division and the rehabilitation division. The hospital division operates LTAC hospitals. The health services division operates nursing centers. The rehabilitation division provides rehabilitation services primarily in long-term care settings. In September 2008, the Company discontinued its operations in LTAC hospital in Massachusetts and California.

Kindred Healthcare has agreements with PharMerica for information systems services, transition services and certain tax matters. The Company owns the operations of the LTAC hospitals, nursing centers and assisted living facilities operated by Commonwealth Communities Holdings LLC and certain of its affiliates (Commonwealth).

Hospital Division

The Company's hospital division provides long-term acute care services to medically complex patients through the operation of a national network of 82 hospitals with 6,482 licensed beds located in 24 states as of December 31, 2008. Kindred Healthcare operates a network of LTAC hospitals in the United States based upon fiscal 2008 revenues of approximately $1.8 billion (before eliminations).

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, computed tomography (CT) scanning, one-day surgery and laboratory. In its hospitals, Kindred Healthcare treats medically complex patients, including the critically ill, suffering from multiple organ system failures, commonly of the cardiovascular, pulmonary, kidney, gastro-intestinal and cutaneous (skin) systems. The Company treats patients with cardio-pulmonary disorders, skin and wound conditions and life-threatening infections.

Health Services Division

The Company's health services division operates a national network of 228 nursing centers (28,525 licensed beds) located in 27 states. Kindred Healthcare is an operator of nursing centers through which it provides patients and residents with long-term care services, a full range of pharmacy, medical and clinical services and routine services, including daily dietary, social and recreational services.

Rehabilitation Division

Kindred Healthcare's rehabilitation division provides rehabilitative services primarily in long-term care settings, but its customers also include hospitals, school districts, outpatient clinics, home health agencies, assisted living facilities and hospice providers, including the hospitals and nursing centers that Kindred Healthcare operates. The Company provides rehabilitative services to 514 nursing centers, 87 hospitals and 55 other locations in 40 states under the name Peoplefirst Rehabilitation. Approximately 63% of the rehabilitation division’s revenues during 2008, were generated from contracts with Kindred Healthcare's hospitals and nursing centers.

Kindred Healthcare's rehabilitation division provides contract therapy services, including physical, occupational and speech therapies, to residents and patients of nursing centers, assisted living facilities and hospitals. In addition to the standard physical, occupational and speech therapies, Kindred Healthcare provides specialized rehabilitation programs designed to meet the specific needs of the residents and patients the Company serves. Its specialized care programs are designed to address wound care, pain management, cognitive deficit, neurologic, orthopedic and pulmonary rehabilitation therapies. Other programs Kindred Healthcare offers include fall prevention and continence improvement.