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Kindred Healthcare and Palomar Health Announce Plans for Inpatient Rehabilitation Hospital

Joint venture will construct and operate a 52-bed hospital in the San Diego area

LOUISVILLE, Ky. & SAN DIEGO--(BUSINESS WIRE)--Jun. 14, 2016-- Kindred Healthcare, Inc. (“Kindred” or the “Company”) (NYSE:KND) today announced that it has signed a definitive agreement with Palomar Health (“Palomar”) to create a joint venture to construct and operate a 52-bed inpatient rehabilitation hospital in Escondido, California, a city in north San Diego County

Kindred will own a slight majority in the joint venture and will manage the day-to-day operations of the new hospital, to be constructed on the campus of Palomar Medical Center in Escondido. Subject to several regulatory and other approvals, Kindred expects the hospital to open by the third quarter of 2019.

Kindred and Palomar have an existing relationship as Kindred Hospital Rehabilitation Services manages the inpatient rehabilitation unit at Palomar Health’s Downtown Campus. Also in the San Diego market, Kindred operates a transitional care hospital and home health and hospice services. Palomar Health, the largest and most comprehensive healthcare system in northern San Diego County, operates three hospitals, including Palomar Medical Center, which opened in 2012. It was the first hospital in California to be affiliated with the Mayo Clinic Care Network and offers a complete range of health services to more than 500,000 residents within its public hospital district.

“We look forward to expanding our relationship with Palomar with this new hospital,” said Benjamin A. Breier , Kindred’s President and Chief Executive Officer. “This new hospital will provide inpatient rehabilitation services that complement Palomar’s highly regarded acute care services and help patients recover and return home. Kindred continues to develop partnerships with some of the nation’s leading health systems because they recognize Kindred’s expertise and care model allows us to meet the needs of each partner health system and drive clinical, regulatory and business results. These collaborative efforts deliver the best in patient care and have helped our inpatient rehabilitation services business outperform peers in key clinical measures.”

“We at Palomar Health are delighted to continue our longstanding partnership with Kindred Healthcare, an internationally recognized expert in rehabilitation,” said Robert Hemker , President and Chief Executive Officer of Palomar Health. “This joint venture to build a new inpatient rehabilitation hospital demonstrates our commitment to Patient First care allowing us to expand our high quality and trusted rehabilitation services.”

About Kindred Healthcare

Kindred Healthcare, Inc., a top-90 private employer in the United States, is a FORTUNE 500 healthcare services company based in Louisville, Kentucky with annual revenues of approximately $7.2 billion(1). At March 31, 2016, Kindred through its subsidiaries had approximately 102,000 employees providing healthcare services in 2,700 locations in 46 states, including 95 transitional care hospitals, 19 inpatient rehabilitation hospitals, 92 nursing centers, 20 sub-acute units, 618 Kindred at Home home health, hospice and non-medical home care sites of service, 104 inpatient rehabilitation units (hospital-based) and a contract rehabilitation services business, RehabCare, which served 1,752 non-affiliated sites of service. Ranked as one of Fortune magazine’s Most Admired Healthcare Companies for seven 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 You can also follow us on Twitter and Facebook.  

About Palomar Health

Palomar Health is the most comprehensive health care delivery system in northern San Diego County and the first California member of the Mayo Clinic Care Network. It is the largest public healthcare district by area in the state, with more than 500,000 residents, and is governed by a publicly-elected board of directors. Palomar Health has several facilities serving North County, including hospitals in Escondido and Poway, expresscare health clinics in Escondido, San Elijo Hills and Temecula, and a skilled nursing facility in Poway. The health system provides medical services in virtually all fields of medicine, including primary care, cardiovascular care, emergency services, trauma, cancer, orthopedics, women’s health, rehabilitation, robotic surgery and bariatric surgery. For more information about Palomar Health, please visit


(1) Revenues based upon Kindred consolidated revenues for the twelve months ended March 31, 2016.


Source: Kindred Healthcare, Inc.

Kindred Healthcare
Susan E. Moss, 502-596-7296
Senior Vice President,
Marketing and Communications
Palomar Health
Chris Saunders, 760-519-4607
Public Relations Manager