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Barbara Baylis Receives Quality Award From American Health Care Association

Kindred Healthcare, Inc. (“Kindred” or the “Company”) (NYSE:KND) today announced that Barbara Baylis, Senior Vice President of Clinical and Residential Services for Kindred’s Nursing Center Division, was named the 2012 recipient of the prestigious Mary K. Ousley Champion of Quality Award by the American Health Care Association (“AHCA”).

AHCA presents the Mary K. Ousley Champion of Quality Award to an individual or organization that has made a significant national contribution to advancing quality performance in the long-term care field. With more than 20 years of experience in organizing and strengthening clinical operations in post-acute care, Ms. Baylis is considered an exceptional champion of quality care and operational improvement. Ms. Baylis, a registered nurse, joined Kindred in 2002. In her role she is responsible for all aspects of clinical compliance and quality improvement throughout Kindred’s nursing and rehabilitation centers.

Under the direction and guidance of Ms. Baylis, Kindred’s nursing and rehabilitation centers have reported improved quality outcomes year over year. Some key areas of improvement since 2008, as noted in the Company’s 2011 Quality and Social Responsibility Report, include a 16% increase in patients discharged home – with 52% of patients discharged home after an average stay of 32 days in 2011, an 8.2% reduction in rehospitalization rates in the first 30 days, and a 27% reduced average length of stay.

“Thanks to Barbara’s hard work and commitment to quality, our nursing and rehabilitation centers have shown improved patient outcomes, patient satisfaction, and have established a reputation for quality care,” said Benjamin A. Breier, Kindred’s President and Chief Operating Officer. “Our nursing and rehabilitation centers continue to outperform national and peer benchmarks on key quality indicators, including performance on government quality inspections where Kindred ranks first on annual surveys compared with other large national providers.”

“Barbara has led the effort to advance our quality programs and clinical outcomes since she joined our team,” said Lane M. Bowen, Executive Vice President and President of the Company’s Nursing Center Division. “In fact, since 2003, 95 percent of Kindred’s nursing and rehabilitation centers have been recognized for their efforts and have earned a Quality Award from AHCA.”

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