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KINDRED HEALTHCARE SUPPORTS NEW BILL IN U.S. SENATE, S. 338, INTRODUCED BY CONRAD AND HATCH THAT WOULD ENSURE THAT THE MOST MEDICALLY COMPLEX PATIENTS HAVE ACCESS TO LTAC HOSPITALS

Praising Criteria Bill, Kindred Healthcare Describes Efforts in Senate as Positive Step in Advancing Post-Acute Health Policy

Louisville, KY (January 19, 2007) – Paul J. Diaz, President and Chief Executive Officer of Kindred Healthcare, Inc. (NYSE: KND), today praised U.S. Senator Kent Conrad (D-ND) and U.S. Senator Orrin Hatch (R-UT) for introducing a bipartisan bill (S. 338) that would create federally mandated certification criteria for America’s long-term acute care (“LTAC”) hospitals.

“The Conrad-Hatch bill is consistent with MedPAC’s June 2004 recommendations to Congress that called for “patient” and “facility” LTAC certification criteria to better define the appropriate role of LTACs in the post-acute continuum,” Mr. Diaz said. “The legislation as introduced in the U.S. Senate is a proactive step toward beginning an open and transparent dialogue about the proper role of LTAC hospitals in the healthcare continuum.”

Mr. Diaz further stated, “We are on record as supporting a similar bill introduced in the House by Representative English and Representative Pomeroy and strongly advocate the development of clinically based LTAC hospital and patient certification criteria, along with the enforcement of existing rules, as a more rationale way to address LTAC hospital policy issues rather than arbitrary payment cuts. We applaud Senator Conrad and Senator Hatch for taking a leadership role in addressing the needs of the most medically complex Medicare beneficiaries requiring specialized services that only LTACs can provide. The two bills would accomplish the same goal – requiring patient certification criteria and ensuring that only the most medically complex of patients would be cared for in LTAC hospitals.

“We look forward to working with Senator Conrad and Senator Hatch to pass this legislation and will continue to work with Congress, the Centers for Medicare and Medicaid Services and other stakeholders to ensure Medicare beneficiaries who need LTAC hospital services receive high quality, patient centered care in the most clinically appropriate and cost-effective setting.”

(See related press release at www.kindredhealthcare.com/Press/2007-01-19.asp.)

About Kindred Healthcare

Kindred Healthcare, Inc. (NYSE: KND) is a Fortune 500 healthcare services company, based in Louisville, Kentucky, with annualized revenues of $4.3 billion that provides services in over 500 locations in 39 states. Kindred through its subsidiaries operates long-term acute care hospitals, skilled nursing centers, institutional pharmacies and a contract rehabilitation services business, Peoplefirst Rehabilitation Services, across the United States. Kindred’s 55,000 employees are committed to providing high quality patient care and outstanding customer service to become the most trusted and respected provider of healthcare services in every community we serve. For more information, go to www.kindredhealthcare.com.

CONTACT:
Susan E. Moss
Vice President of Corporate Communications
(502) 596-7296

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