Paul Diaz, Kindred Healthcare's CEO and Ben Breier, Kindred's COO delivered a company update to the attendees of the 2011 Clinical Impact Symposium.

1. Company Update
PRESENTED BY:
Paul J. Diaz, President & CEO
Benjamin A. Breier, Executive Vice President & COO

2. Forward-Looking Statements
This presentation 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. All statements regarding Kindred s
expected future financial position, results of operations, cash flows, 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, should, will, intend, may and other similar expressions, are forward-looking statements.
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 or performance to differ materially from any future results or performance 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 ).
In addition to the factors set forth above, other factors that may affect Kindred s plans or results include, without limitation, (a) the impact of a final rule issued by CMS on July 29, 2011 providing for a 11.1% reduction in Medicare reimbursement
to nursing centers as well as changes in payments for the provision of group rehabilitation therapy services, (b) other potential reimbursement changes resulting from the Budget Control Act of 2011, (c) Kindred s ability to integrate the operations
of the acquired hospitals and rehabilitation services operations and realize the anticipated revenues, economies of scale, cost synergies and productivity gains in connection with the RehabCare acquisition and any other acquisitions that may be
undertaken during 2011, as and when planned, including the potential for unanticipated issues, expenses and liabilities associated with those acquisitions, (d) the potential for diversion of management time and resources in seeking to integrate
RehabCare s operations, (e) the potential failure to retain key employees of RehabCare, (f) the impact of Kindred s significantly increased levels of indebtedness as a result of the RehabCare acquisition on Kindred s funding costs, operating
flexibility and ability to fund ongoing operations, development capital expenditures or other strategic acquisitions with additional borrowings, particularly in light of ongoing volatility in the credit and capital markets, (g) the impact of healthcare
reform, which will initiate significant reforms to the United States healthcare system, including potential material changes to the delivery of healthcare services and the reimbursement paid for such services by the government or other third party
payors. Healthcare reform will impact each of Kindred s businesses in some manner. Due to the substantial regulatory changes that will need to be implemented by CMS and others, and the numerous processes required to implement these
reforms, Kindred cannot predict which healthcare initiatives will be implemented at the federal or state level, the timing of any such reforms, or the effect such reforms or any other future legislation or regulation will have on Kindred s business,
financial position, results of operations and liquidity, (h) changes in the reimbursement rates or the methods or timing of payment from third party payors, including commercial payors and the Medicare and Medicaid programs, changes arising
from and related to the Medicare prospective payment system for long-term acute care ( LTAC ) hospitals, including potential changes in the Medicare payment rules, the Medicare Prescription Drug, Improvement, and Modernization Act of
2003, and changes in Medicare and Medicaid reimbursements for nursing centers, and the expiration of the Medicare Part B therapy cap exception process, (i) the effects of additional legislative changes and government regulations,
interpretation of regulations and changes in the nature and enforcement of regulations governing the healthcare industry, (j) Kindred s ability to successfully pursue its development activities, including through acquisitions, and successfully
integrate new operations, including the realization of anticipated revenues, economies of scale, cost savings and productivity gains associated with such operations, (k) the impact of the Medicare, Medicaid and SCHIP Extension Act of 2007 (the
SCHIP Extension Act ), including the ability of Kindred s hospitals to adjust to potential LTAC certification, medical necessity reviews and the moratorium on future hospital development, (l) the impact of the expiration of several moratoriums
under the SCHIP Extension Act which could impact the short stay rules, the budget neutrality adjustment as well as implement the policy known as the 25 Percent Rule, which would limit certain patient admissions, (m) failure of Kindred s
facilities to meet applicable licensure and certification requirements, (n) the further consolidation and cost containment efforts of managed care organizations and other third party payors, (o) Kindred s ability to meet its rental and debt service
obligations, (p) Kindred s ability to operate pursuant to the terms of its debt obligations and its master lease agreements with Ventas, Inc. (NYSE:VTR), (q) the condition of the financial markets, including volatility and weakness in the equity,
capital and credit markets, which could limit the availability and terms of debt and equity financing sources to fund the requirements of Kindred s businesses, or which could negatively impact Kindred s investment portfolio, (r) national and
regional economic, financial, business and political conditions, including their effect on the availability and cost of labor, credit, materials and other services, (s) Kindred s ability to control costs, particularly labor and employee benefit costs, (t)
increased operating costs due to shortages in qualified nurses, therapists and other healthcare personnel, (u) Kindred s ability to attract and retain key executives and other healthcare personnel, (v) the increase in the costs of defending and
insuring against alleged professional liability and other claims and the ability to predict the estimated costs related to such claims, including the impact of differences in actuarial assumptions and estimates compared to eventual outcomes, (w)
Kindred s ability to successfully reduce (by divestiture of operations or otherwise) its exposure to professional liability and other claims, (x) Kindred s ability to successfully dispose of unprofitable facilities, (y) events or circumstances which could
result in the impairment of an asset or other charges, (z) changes in generally accepted accounting principles ( GAAP ) or practices, and changes in tax accounting or tax laws (or authoritative interpretations relating to any of these matters), and
(aa) Kindred s ability to maintain an effective system of internal control over financial reporting. 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.
The information being provided today is as of this date only and 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. Additional information concerning Kindred, including our SEC filings and a copy of this presentation, is available on our website www.kindredhealthcare.com, under the heading Investor Information.
Reconciliation of non-GAAP Financial Measures
Our website also includes reconciliations of any non-GAAP financial measures we mention in our presentations to their corresponding GAAP measures. These reconciliations may be found at www.kindredhealthcare.com under the heading
Investor Information.

3. Kindred Healthcare 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.

4. Premier Provider of Rehabilitation Services and Post-
Acute Care in the United States(1)
$6 billion(2) 2,191(3) 53,200(3) 76,900(3)
consolidated sites of service, patients and dedicated
revenues 451 facilities residents employees,
in 46 states per day making Kindred
a top-150 private
employer in
(1) Ranking based on revenues. the U.S.(4)
(2) Pro forma revenues for the twelve months ended September 30, 2011.
(3) As of September 30, 2011.
(4) Ranking provided by TMP, Inc.

5. Leading National Post-Acute Provider
With Focus On Developing Cluster Market Service Offerings

7. Tremendous
OpportuniAes
Exist
to
BeCer
Manage
PaAent
Care
for
PaAents
Discharged
from
Acute
Care
Hospitals
Medicare
Pa#ents
Use
of
Post-­‐Acute
Services
Throughout
an
Episode
of
Care (1)
Higher
Intensity
of
Service
Lower
SHORT-­‐TERM
LONG-­‐TERM
SKILLED
HOME
INPATIENT
OUTPATIENT
ACUTE
CARE
ACUTE
CARE
NURSING
HEALTH
REHAB
REHAB
HOSPITALS
HOSPITALS
FACILITIES
CARE
Pa#ents first
site
of
discharge
a1er
acute
2%
10%
41%
9%
37%
care
hospital
stay
Pa#ents
use
of
site
during
a
90
day
episode
2%
11%
52%
21%
61%
35% of Medicare Beneficiaries are Discharged from Acute
Hospitals to Post-Acute Care
(1)
Source:
RTI,
2009:
Examining
Post
Acute
Care
Rela#onships
in
an
Integrated
Hospital
System

8. Kindred Is Positioned to Help Determine the Most
Appropriate Setting for Patients as they Continue Their
Care Throughout a Post-Acute Episode
Pa#ents
Discharged
From
Kindred
Pa#ents
Discharged
from
Pa#ents
Discharged
from
LTAC
Hospitals
Kindred
IRFs
Kindred
Nursing
and
Rehabilita#on
Centers
25%
5%
77%
50%
35%
13%
Home
Home
Home
Skilled
Inpa#ent
Skilled
16%
with
45%
with
31%
with
Nursing
Rehab
Nursing
Home
Home
Home
and
Facility
and
Health
Health
Health
Rehab
Rehab
Centers
Centers
(1)
Source:
Kindred
Internal
Data,
2010
data.

9. Positioned to Take Advantage of
Changing Healthcare Landscape
Uniquely Positioned For Bundled Or Episodic Payment Environment
Continue The Care
ACUTE
CARE
HOSPITALS
TRANS
LTACs
ICU
Patient Service Intensity
FREESTANDING/
HIH
CARE
IN-­‐PATIENT
REHAB
SAU
SKILLED
TCC
&
OUTPATIENT
NURSING
TCU
REHAB
FACILITIES
ASSISTED
HOME
LIVING
HOSPICE
HEALTH
ADULT
DAY
CARE
CARE
HOME
Patient Illness Severity

10. Our Strategic Opportunity and Value Proposition:
§ Be a leader in helping to coordinate and deliver the highest quality care at
the lowest cost (particularly for those patients who are the highest users of
healthcare services) by delivering the best care at the most appropriate
setting.
§ Provide superior clinical outcomes and quality care with an approach which
is patient-centered, disciplined and transparent
§ Lower cost by reducing lengths of stay in acute care hospitals and transition
patients home at the highest possible level of function
§ Reduce rehospitalization through our integrated and interdisciplinary care
management teams and protocols.

11. Hospital Division
Quality  Consistently the Best !
2.5 3.5
2.23
80.0
1.5 3.06
3.0
1.38
1.90
70.0
1.32 2.0 2.63 62.91
1.3 2.5 60.0
1.64 53.97
52.83
1.52
1.13
1.5 50.0
1.06
1.29 2.0
1.1 41.42
40.0 36.42
0.94 1.5
1.0
0.9 30.0
1.0
20.0
0.7 0.5
0.5
10.0
0.5 0.0 0.0 0.0
Pressure Wounds Blood Stream Infection Urinary Tract Infections Restraints
Per 1000 Patient Days Per 1000 Central Line Days Per 1000 Urinary Catheter Days Per 1000 Patient Days
2007 2008 2009 2010 2011
2011 Results are YTD through September

12. Hospital Division
Customer Service  Consistent Year over Year Improvement
4.61
4.60 4.57
4.51 4.51 4.51
4.48
4.50 4.46
4.38 4.38
4.40 4.37
4.34 2007
4.31
4.30 4.23 4.23
2008
4.19 2009
4.20 2010
2011
4.10
4.00
3.90
Call Light Response Coordination Pain Management
Between Shifts
2011 Results are YTD through June

13. Nursing Center Division
Kindred s Survey Quality Performance Ranks 1st Among Large
Providers and Outperforms National Benchmarks in Key Areas
%
of
Facili#es
with
%
of
Facili#es
with
%
of
Facili#es
with
Average
Number
of
Substandard
Care
Serious
Deficiencies
Zero
Deficiencies
Survey
Deficiencies
25.5%
23.2%
19.1% Higher
is
BeCer
12.2% 12.3%
9.1%
3.1% 2.2% 6.00 5.1 6.2
1.8%
National Not
for
Profit Kindred

14. Nursing & Rehabilitation Centers
Fulfilling our Mission and Delivery on our Value Proposition
Kindred
is
caring
for
sicker
paAents…
And
in
turn
has
invested
in
ResulAng
in
fewer
rehospitalizaAons
addiAonal
resources
to
care
for
and
more
paAents
going
home
them…
sooner
with
improved
clinical
150%
outcomes…
60% 30%
135% 53%
106% 15% 11%
100% 40% 36%
0%
48%
-­‐6%
50% 20%
30% -­‐15%
9% -­‐19%
0% 0% -­‐30%
2005 2010 2004 2010 2008 2010
Nursing
Hours
PPD %
I ncrease
i n
Patients
Discharged
Home
%
I ncrease
i n
Patients
Receiving
Dialysis
Rehab
Hours
PPPD
%
I ncrease
i n
Patients
Receiving
I V
Therapy %
Decrease
i n
Average
Length
of
Stay
Pharmacy
Costs
($m)
%
I ncrease
i n
Admissions
from
Hospitals %
Decrease
i n
Rehospitalizations
within
%
I ncrease
i n
Medicare
Case
Mix
I ndex 30
Days
of
Admission
*
Data
not
adjusted
for
severity
of
illness

15. Kindred Nursing Center Division
American
Healthcare
AssociaAon
Quality
Awards
1
22
208
GOLD
SILVER
BRONZE
AWARD
AWARD
AWARD
WINNERS
WINNERS
WINNERS
Out
of
224
Only 10 Gold Total
Kindred
Award Winners in
the United States!
Nursing
and
Rehabilita#on
Centers

16. RehabCare
Improving % of Patients Discharged to Home
Orthopedic Conditions 61.1
Pain Syndrom e 42.7
Am putation 29.7
Other Disabling Im pairm ents 34.5
Debility 50.0
Wound 38.2
Pulm onary/Cardiac 37.5
Arthritis 23.1
Stroke 26.5
Neurological Condition 21.6
Spinal Cord Injury 25.4
Brain Dysfunction 9.8
0 10 20 30 40 50 60 70
• Discharge to Home up year over year

17. Intensive Rehabilitation Services Provided in SNFs
Produces Significant Clinical and Economic Value
Greater
RehabilitaAon
Therapy
Intensity
Greater
RehabilitaAon
Therapy
Intensity
Increases
the
Rate
of
Discharge
to
Home
Decreases
SNF
Length
of
Stay
54.8%
Intensive
Therapy
36.8% 40.2% 39.2%
32.2% 36.2%
Services
Significantly
26.5%
Improves
PaAent
FuncAoning
from
SNF
Admissions
to
Stroke Pulmonary Wound Brain Neurological Orthopedic Other
Discharge
Cardiac Dysfunction
Source:
Modified
FIM
Scores
from
Kindred
Internal
Data
(2010)

18. Coordinating Clinical Services & Programs Across Service
Lines to Improve Outcomes and Prevent Readmissions
InpaAent
Skilled
Nursing
&
Long-­‐Term
Acute
Hospital
Based
RehabilitaAve
Home
Health
&
RehabilitaAon
RehabilitaAon
Care
Hospitals
Sub-­‐Acute
Units
Therapy
Hospice
FaciliAes
Centers
Services Services Services Specialty Programs Therapies Services
Cardiac Care Intensive Short-Term Cardiac Care Cardio-Pulmonary Skilled Nursing Care
Respiratory &
Complex and Medically w/ Specialty
Pulmonary Care Pulmonary Care Pulmonary Care
Rehabilitation Complex Programs
Complex Wound Clinically Complex Wound Care, CHF,
Severe Stroke, Brain,
Care Care Wound Care Methadone Dosing,
Spinal Cord, and Other
Wound Care Therapies for Med Management,
IV antibiotic Reconditioning Neurological
Complex Wounds Safety Assessments,
Therapy Wound Care Impairment
IV Therapy
Intensive Short – Orthopedic and Orthopedic Rehab Physical,
Short-Term Complex Cognitive, Neurological Occupational &
Term & Orthopedic Neurological /
Rehabilitation Physical Rehabilitation Rehabilitation Speech Therapy
Rehabilitation Stroke Rehabilitation
Long-term Chronic
Dialysis Dialysis, Wound Care, Care Palliative & Pain
IV Therapy Psychiatric Nursing
Pain Management Pulmonary Therapy Palliative & Hospice Programs
Care

19. CLUSTER MARKET STRATEGY IS DESIGNED
TO IMPROVE CARE COORDINATION
CONTINUE
THE
CARE
§ Diverse post-acute service lines and
clinical programs to support a continuum of
care within an ACO and/or a bundled
payment environment
§ Coordinate admission process to ensure
appropriate patient placement
§ Strengthen linkages with acute hospitals,
managed care payors, and referring health
systems
– physician continuity of care across settings
PotenAal
benefits
include
– IT linkages, including electronic health
improved
care
coordinaAon,
record
reduced
re-­‐hospitalizaAons,
lower
– agreed upon admission criteria and clinical
capabilities
costs
and
admissions
growth

20. Closing Thoughts
§ Track record for operational success based on commitment to
quality, service excellence and a demonstrated ability to adapt
to change
§ We are in a strong financial position and have the flexibility to
continue to grow and weather the current reimbursement head-winds
§ People, Quality, Cost Management and Admissions/Contract Growth
will always be our Key Drivers of Value Creation
§ Well positioned to succeed long term in a changing post-acute
landscape

21. Company Update
PRESENTED BY:
Paul J. Diaz, President & CEO
Benjamin A. Breier, Executive Vice President & COO