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KINDRED HEALTHCARE ANNOUNCES 21 OF ITS NURSING CENTERS ARE RECIPIENTS OF THE 2005 AHCA QUALITY AWARD

Louisville, KY (September 20, 2005) – Kindred Healthcare, Inc. (the “Company”) (NYSE: KND) today announced that 21 of its nursing centers have been named recipients of the 2005 American Health Care Association (“AHCA”) Quality Award for demonstrating a strong commitment to quality improvement. A national presentation for award recipients is planned during AHCA’s Annual Convention and Exposition in October.

The AHCA Quality Award is a “step-based” program. Facilities may apply for recognition and awards at three levels, each of which requires a more detailed and comprehensive demonstration of the implementation of a systematic quality program.

Step I applicants are assessed on their ability to develop a profile of their mission, services, environment, stakeholders and resources. They are adept at initiating improvement and measuring results.

Step II applicants are assessed on their ability to apply the core values and concepts of quality, adapted to the long-term care environment from the Malcolm Baldrige National Quality Award criteria for performance excellence.

Step III level recipients have successfully addressed each of the seven categories and related items in the Baldrige award. Recipients have demonstrated their ability to implement systematic approaches and deployment with superior results.

There are approximately 16,000 nursing centers in the United States. There were a total of 552 applications for the 2005 Quality Awards and 134 facilities in 37 states were named as recipients. Kindred Healthcare earned the largest number of Quality Awards of any company in the country.

Two of the Company’s nursing centers are recipients of the Step II Award: Clark House Nursing Center at Fox Hill Village in Westwood, Massachusetts, and Newton and Wellesley Alzheimer Center in Wellesley, Massachusetts. Both of these centers were Step I Award winners last year.

In addition, 19 of the Company’s nursing centers are recipients of the Step I Award. They are:

Desert Life Rehabilitation and Care Center and Villa Campana Health Care Center, both located in Tucson, Arizona,
Lawton Healthcare Center in San Francisco, California,
Mountain Valley Care & Rehabilitation Center in Kellogg, Idaho,
Bremen Health Care Center in Bremen, Indiana,
Harrison Health and Rehabilitation Centre in Corydon, Indiana,
Regency Place of Fort Wayne in Fort Wayne, Indiana,
Royal Oaks Health Care & Rehabilitation Center in Terre Haute, Indiana,
Blue Hills Alzheimer’s Care Center in Stoughton, Massachusetts,
Torrey Pines Care Center in Las Vegas, Nevada,
Guardian Care of Henderson in Henderson, North Carolina,
Lebanon Country Manor in Lebanon, Ohio,
Minerva Park Nursing and Rehabilitation Center in Columbus, Ohio,
Whitehouse Country Manor in Whitehouse, Ohio,
Medford Rehabilitation and Healthcare Center in Medford, Oregon,
Masters Health Care Center in Algood, Tennessee,
Lakewood Healthcare Center in Lakewood, Washington,
Rainier Vista Care Center in Puyallup, Washington, and
Mount Carmel Medical and Rehabilitation Center in Burlington, Wisconsin.

“This is a great honor for these nursing centers and for our employees who work hard every day to take care of our residents,” said Paul J. Diaz, President and Chief Executive Officer of the Company. “These centers serve as a great example for our Company and our commitment to focus on quality care and customer service.”

“We are proud of these nursing centers for their achievements,” said Lane M. Bowen, Executive Vice President and President of the Company’s Health Services Division. “We congratulate all of our centers for their continuing commitment to quality improvement.”

Kindred Healthcare, Inc. through its subsidiaries operates hospitals, nursing centers, institutional pharmacies and a contract rehabilitation services business across the United States.

CONTACT:
Susan E. Moss
Vice President of Corporate Communications
(502) 596-7296

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