Kindred Healthcare Announces Plans to Acquire St. Louis, Missouri Hospital

Kindred Healthcare Announces Plans to Acquire St. Louis, Missouri Hospital

Kindred Healthcare, Inc.Richard A. Lechleiter, 502-596-7734Executive Vice President andChief Financial Officer

Kindred Healthcare, Inc. (the “Company” or “Kindred”) (NYSE:KND) today announced that it has signed an agreement to acquire the operations of Mercy Continuing Care Hospital (“Mercy”), a 54-bed transitional care hospital (licensed as a long-term acute care hospital) located in St. Louis, Missouri, from SJMDHS, LCC, a partnership between Mercy and CHRISTUS Continuing Care. Kindred expects to complete the transaction in the third quarter of 2013, pending regulatory and other approvals. Terms of the transaction were not disclosed.

Kindred has signed a lease with Mercy to relocate the operations from the current location to Mercy Hospital St. Louis, an 80-acre, 979-bed healthcare campus that contains a heart and vascular hospital, a cancer center, a comprehensive children’s hospital, a surgery center and a skilled nursing center. Kindred expects to complete the relocation in the third quarter of 2013.

In the St. Louis market, Kindred currently operates two transitional care hospitals, one inpatient rehabilitation hospital and, through its RehabCare division, two hospital-based acute rehabilitation units.

“Expanding our hospital services in St. Louis allows us to continue growing our continuum of post-acute services, enabling us to better for our patients throughout a post-acute episode,” said Paul J. Diaz, Kindred’s Chief Executive Officer. “We are excited that we continue to have a robust pipeline of selective opportunities to expand our continuum of services in our Integrated Care Markets that benefits our patients and our shareholders.”

Kindred Healthcare, Inc., a top-125 private employer in the United States, is a FORTUNE 500 healthcare services company based in Louisville, Kentucky with annual revenues of $6 billion and approximately 78,000 employees in 46 states. At December 31, 2012, Kindred through its subsidiaries provided healthcare services in 2,203 locations, including 116 transitional care hospitals, six inpatient rehabilitation hospitals, 223 nursing and rehabilitation centers, 27 sub-acute units, 101 Kindred at Home hospice, home health and non-medical home care locations, 105 inpatient rehabilitation units (hospital-based) and a contract rehabilitation services business, RehabCare, which served 1,625 non-affiliated facilities. Ranked as one of Fortune magazine’s Most Admired Healthcare Companies for five years in a row, 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 .