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KINDRED HEALTHCARE RECEIVES THE LARGEST NUMBER OF AHCA QUALITY AWARDS OF ANY COMPANY IN THE COUNTRY FOR THE FOURTH STRAIGHT YEAR

Louisville, KY (September 18, 2007) – Kindred Healthcare, Inc. (the “Company”) (NYSE:KND) today announced that 39 of its nursing centers have been named recipients of the 2007 American Health Care Association (“AHCA”) Quality Award for demonstrating a strong commitment to quality improvement. Kindred earned the largest number of Quality Awards of any company in the country for the fourth straight year.

The AHCA Quality Award is a “step-based” program. Step I recipients developed solid vision and mission statements, and have developed systems to meet the expectations and needs of their customers. Recipients at the Step II level addressed in detail aspects of leadership, strategic planning, information gathering and analysis, human resource development and process management.

There are approximately 16,000 nursing centers in the United States. There were a total of 595 applications for the 2007 Quality Awards and 153 long-term care facilities were named as recipients.

Two of the Company’s nursing centers are recipients of the Step II Award: Kindred Healthcare Center of Orange in Orange, California, and Mountain Valley Care & Rehabilitation Center in Kellogg, Idaho. Kindred Healthcare Center of Orange received a Step I Award in 2006 and Mountain Valley Care & Rehabilitation Center received a Step I Award in 2005.

In addition, 37 of the Company’s nursing centers are recipients of the Step I Award. They are:
Whitesburg Gardens Health Care Center in Huntsville, Alabama,
Andrew House Healthcare in New Britain, Connecticut,
Specialty Care of Marietta in Marietta, Georgia,
Angel River Health and Rehabilitation in Newburgh, Indiana,
Meadowvale Health and Rehabilitation Center in Bluffton, Indiana,
Rolling Hills Health Care Center in New Albany, Indiana,
Wedgewood Healthcare Center in Clarksville, Indiana,
Heritage Manor Healthcare Center in Mayfield, Kentucky,
Augusta Rehabilitation Center in Augusta, Maine,
Brentwood Rehabilitation and Nursing Center in Yarmouth, Maine,
Kennebunk Nursing and Rehabilitation Center in Kennebunk, Maine,
Westgate Manor in Bangor, Maine,
Winship Green Nursing Center in Bath, Maine,
Blueberry Hill Skilled Nursing and Rehabilitation Center in Beverly, Massachusetts,
Bolton Manor Nursing and Rehabilitation Center in Marlborough, Massachusetts,
Colony House Nursing and Rehabilitation Center in Abington, Massachusetts,
Eagle Pond Rehabilitation and Living Center in South Dennis, Massachusetts,
Highlander Rehabilitation and Nursing Center in Fall River, Massachusetts,
Ledgewood Rehabilitation and Skilled Nursing Center in Beverly, Massachusetts,
Quincy Rehabilitation and Nursing Center in Quincy, Massachusetts,
Sachem Skilled Nursing and Rehabilitation Center in East Bridgewater, Massachusetts,
Seacoast Nursing and Rehabilitation Center in Gloucester, Massachusetts,
The Meadows Rehabilitation and Nursing Center in Rochdale, Massachusetts,
Timberlyn Heights Nursing and Alzheimer’s Center in Great Barrington, Massachusetts,
Guardian Care of Elizabeth City in Elizabeth City, North Carolina,
Guardian Care of Roanoke Rapids in Roanoke Rapids, North Carolina,
Guardian Care of Rocky Mount in Rocky Mount, North Carolina,
Rehabilitation and Health Center of Gastonia in Gastonia, North Carolina,
Winston-Salem Rehabilitation and Healthcare Center in Winston-Salem, North Carolina,
Northhaven Health Care Center in Knoxville, Tennessee,
Primacy Healthcare and Rehabilitation Center in Memphis, Tennessee,
Smith County Health Care Center in Carthage, Tennessee,
St. George Care and Rehabilitation Center in Saint George, Utah,
Wasatch Care Center in Ogden, Utah,
Birchwood Terrace Healthcare in Burlington, Vermont,
Colony Oaks Care Center in Appleton, Wisconsin, and
Mountain Towers Healthcare and Rehabilitation Center in Cheyenne, Wyoming.

“Since 2003, a total of 103 Kindred nursing centers have received this award, almost half of all of our portfolio,” said Paul J. Diaz, President and Chief Executive Officer of the Company. “We are proud that for the fourth year in a row, Kindred had the highest number of quality awards of any company in the country. The number of awards reflects our commitment to quality and improving clinical outcomes, which are the key drivers of our business strategy.”

“Every day we try and improve the quality care we provide in our nursing centers, and for our caregivers to receive these awards is very gratifying,” said Lane M. Bowen, Executive Vice President and President of the Company’s Health Services Division. “To us it is confirmation that what we do is having an impact. But quality improvement is a never-ending process.”

About Kindred Healthcare

Kindred Healthcare, Inc. (NYSE:KND) is a Fortune 500 healthcare services company, based in Louisville, Kentucky, with annual revenues of over $4 billion. Kindred through its subsidiaries operates long-term acute care hospitals, skilled nursing centers and a contract rehabilitation services business, Peoplefirst Rehabilitation Services, in approximately 560 locations in 39 states across the United States. Kindred’s 51,000 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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