Leadership Vision

By Kindred Healthcare

Leadership VisionPaul Diaz, Kindred’s Chief Executive Officer, and Benjamin Breier, its President and Chief Operating Officer, delivered a summary of leadership’s vision for the future of the company this morning at the 2014 Kindred Clinical Impact Symposium.

Diaz, who will move into a position as Executive Chairman of the Board in March 2015, as Breier takes over as Chief Executive Officer, began by offering a welcome to the members of the Gentiva team that are present for the event, pointing out that when Kindred and Gentiva merge, as announced last month, the combination will serve more than one million patients per year and the company will grow by about 45,000 employees.

Diaz reminded attendees that at the heart of the care we give, is the people; we are delivering on what patients value most – getting well and staying home.

This year's symposium, which focuses on care of the stroke patient, was introduced through video in the words of one of Kindred's own stroke patients, Patrick, who went through stroke recovery with the help of clinicians and therapists first at Kindred Hospital Las Vegas – Flamingo and then after transitioning to their Subacute Unit.

Diaz also pointed to the challenges that Kindred still faces as it moves toward value-based, instead of volume-based, care. Today’s healthcare system still does not reward that care delivery method.

“Our strategy going forward,” Diaz said, “will be how do we get paid, and share with our teammates and shareholders, the success of getting patients home and keeping them home.”

That goal, getting patients home and keeping them home, is at the heart of Kindred’s value proposition, which includes:

  • Being a leader in healing
  • Coordinating and delivering high quality care at the lowest cost
  • Lowering healthcare costs by reducing rehospitalizations and lengths-of-stay in acute care hospitals
  • Participating in the development of new care delivery and payment models

One opportunity, Diaz said, might be through the Medicare Advantage program. About 10,000 new beneficiaries join Medicare every day and half of these new patients are going into Medicare Advantage plans. Those Medicare Advantage plans, he pointed out, are looking for partners like Kindred.

Breaking down healthcare delivery silos continues to be a mission for Kindred, as it has been throughout Diaz’s 12-year tenure, and the challenge of putting patients at the center of care delivery even in the presence of disparate silos remains.
 
As he ponders his move out of the CEO role, Diaz said: “The only disappointment I will have will be sitting on the board watching you all do this over the next decade.”

With that, Breier talked about the exciting times ahead, as Kindred and Gentiva come together, and the strong position we are already in as we approach this next phase.

Long-term acute care hospitals, Breier said, take care of patients with the highest acuity of almost any healthcare setting, and even with that kind of acuity, well over 85 percent of patients get discharged home or to a lower care setting.

RehabCare employs about 24,000 therapists, and is the largest employer of therapists in the world, deployed to many care settings.

The Nursing Center Division continues to be one of the top operators of transitional care centers and sub-acute units.

Breier also pointed out the many investments in people resources that Kindred makes on a daily basis, and the many opportunities that exist for people who want to grow professionally. Those include:

  • The Executive Development Program that cultivates people who are out of graduate programs
  • The Rising Stars program that helps identify future officers
  • The Nurse Leadership Program

“We want to bubble up all the talent in this room,” he said.

Breier also touched on the important role of information exchange, which helps to take the friction out of moving a patient from one setting to another.

The Kindred Contact Center, piloted last spring in Cleveland and rolled out nationally in September, is one of Kindred’s most exciting brand initiatives.

“We asked ourselves, what if we become the company that can serve as the source for answering consumers’ questions about how to get post-acute care,” Breier said.

Since the launch of the pilot, the Contact Center has received thousands of calls, been centralized in Louisville and seen over 100 admissions. The next stop? National television ads to be rolled out the first of the year.

Said Diaz: “There’s been a lot of change over the past 10 years and the next 10 promise to be even more exciting. Kindred is well-positioned for tomorrow and there are many opportunities professionally for you and your teammates back home. This is a time of incredible opportunity with the growing need for patient-centered care.”

Additional Information
The information set forth herein does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. This communication may be deemed to be solicitation material in respect of the proposed merger between Kindred Healthcare, Inc. (“Kindred”) and Gentiva Health Services, Inc. (“Gentiva”). In connection with the proposed merger, Kindred intends to file a registration statement on Form S-4, containing a proxy statement/prospectus, with the SEC. SHAREHOLDERS OF GENTIVA ARE URGED TO READ ALL RELEVANT DOCUMENTS FILED WITH THE SEC, INCLUDING THE PROXY STATEMENT/PROSPECTUS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED MERGER. Investors and security holders will be able to obtain copies of the proxy statement/prospectus as well as other filings containing information about Kindred and Gentiva, without charge, at the SEC’s website, www.sec.gov. Those documents, when filed, as well as Kindred’s other public filings with the SEC, may be obtained without charge at Kindred’s website at www.kindredhealthcare.com.

Forward-Looking Statements
The information set forth herein includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include, but are not limited to, statements regarding the proposed business combination transaction between Kindred and Gentiva (including financing of the proposed transaction and the benefits, results, effects and timing of a transaction), all statements regarding Kindred’s (and Kindred’s and Gentiva’s combined) expected future financial position, results of operations, cash flows, dividends, financing plans, business strategy, budgets, capital expenditures, competitive positions, growth opportunities, plans and objectives of management, and statements containing the words such as “anticipate,” “approximate,” “believe,” “plan,” “estimate,” “expect,” “project,” “could,” “would,” “should,” “will,” “intend,” “may,” “potential,” “upside,” and other similar expressions. Statements in this communication concerning the business outlook or future economic performance, anticipated profitability, revenues, expenses, dividends or other financial items, and product or services line growth of Kindred (and the combined businesses of Kindred and Gentiva), together with other statements that are not historical facts, are forward-looking statements that are estimates reflecting the best judgment of Kindred based upon currently available information.

Such forward-looking statements are inherently uncertain, and stockholders and other potential investors must recognize that actual results may differ materially from Kindred’s expectations as a result of a variety of factors, including, without limitation, those discussed below. Such forward-looking statements are based upon management’s current expectations and include known and unknown risks, uncertainties and other factors, many of which Kindred is unable to predict or control, that may cause Kindred’s actual results, performance or plans with respect to Gentiva to differ materially from any future results, performance or plans expressed or implied by such forward-looking statements. These statements involve risks, uncertainties and other factors discussed below and detailed from time to time in Kindred’s filings with the Securities and Exchange Commission (the “SEC”).

Risks and uncertainties related to the proposed merger include, but are not limited to, the risk that Gentiva’s stockholders do not approve the merger, potential adverse reactions or changes to business relationships resulting from the announcement or completion of the merger, uncertainties as to the timing of the merger, adverse effects on Kindred’s stock price resulting from the announcement or completion of the merger, competitive responses to the announcement or completion of the merger, the risk that healthcare regulatory, licensure or other approvals and financing required for the consummation of the merger are not obtained or are obtained subject to terms and conditions that are not anticipated, costs and difficulties related to the integration of Gentiva’s businesses and operations with Kindred’s businesses and operations, the inability to obtain, or delays in obtaining, cost savings and synergies from the merger, uncertainties as to whether the completion of the merger or any transaction will have the accretive effect on Kindred’s earnings or cash flows that it expects, unexpected costs, liabilities, charges or expenses resulting from the merger, litigation relating to the merger, the inability to retain key personnel, and any changes in general economic and/or industry-specific conditions.

In addition to the factors set forth above, other factors that may affect Kindred’s plans, results or stock price are set forth in Kindred’s Annual Report on Form 10-K and in its reports on Forms 10-Q and 8-K.

Many of these factors are beyond Kindred’s control. Kindred cautions investors that any forward-looking statements made by Kindred are not guarantees of future performance. Kindred disclaims any obligation to update any such factors or to announce publicly the results of any revisions to any of the forward-looking statements to reflect future events or developments.

Participants in Solicitation
Kindred and its directors and executive officers, and Gentiva and its directors and executive officers, may be deemed to be participants in the solicitation of proxies from the holders of Gentiva common stock in respect of the proposed merger. Information about the directors and executive officers of Kindred is set forth in the proxy statement for Kindred’s 2014 Annual Meeting of Shareholders, which was filed with the SEC on April 3, 2014. Information about the directors and executive officers of Gentiva is set forth in the proxy statement for Gentiva’s 2014 Annual Meeting of Shareholders, which was filed with the SEC on March 25, 2014. Investors may obtain additional information regarding the interest of such participants by reading the proxy statement/prospectus regarding the proposed merger when it becomes available.