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Kindred and Dignity Health Announce Plans for Inpatient Rehabilitation Hospital

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Joint venture will construct and operate a 50-bed hospital in the Phoenix area

Kindred Healthcare, Inc. (“Kindred”) (NYSE:KND) today announced that it has signed a definitive agreement with Dignity Health creating a joint venture to construct and operate a 50-bed inpatient rehabilitation hospital in Chandler, Arizona, a suburb of Phoenix. Kindred will own a slight majority in the joint venture and will manage the day-to-day operations of the new hospital.

The hospital will be called Dignity Health Rehabilitation Hospital - East Valley. Subject to several regulatory and other approvals, Kindred expects the hospital to open by the third quarter of 2016.

In the Phoenix market, Kindred currently operates two transitional care hospitals, home health, hospice and non-medical home care services and Kindred is also developing a new 120-bed transitional care center (“TCC”) (licensed for skilled nursing care) in Phoenix. The TCC is expected to open in the second half of 2015. Dignity Health operates five hospitals and numerous other healthcare services in the Phoenix area. Dignity Health St. Joseph’s Hospital in Phoenix includes the Barrow Neurological Institute and is consistently ranked one of the best hospitals in the nation for neurological services. It is also home of the Muhammad Ali Parkinson Center.

Kindred and Dignity Health currently have one joint venture in Southern California which is focused on home health services.

“Collaborating with high quality providers like Dignity Health is critical to our commitment to meet patient needs and manage care throughout the entire care continuum as we lower costs and improve patient outcomes,” said Kent H. Wallace, Kindred’s Chief Operating Officer. “This new joint venture adds to our strong relationship with Dignity Health, and we look forward to working together to provide health solutions for patients in the greater Phoenix community.”

Dignity Health is one of Arizona’s largest healthcare systems and Linda Hunt, President and CEO of Dignity Health in Arizona, said this joint venture “brings together two companies that are committed to excellent patient care. For patients being treated in one of our hospitals, the partnership with Kindred will make available to them additional long-term medical and rehabilitation resources to help them return to a healthy life.”

“Having an inpatient rehabilitation hospital in the Phoenix area will build on our Continue the Care strategy and allow us to provide a full continuum of services to our patients,” said Mr. Wallace. “This new inpatient rehabilitation hospital will further enhance our position as one of the nation’s premier providers of inpatient rehabilitation.”

About Kindred Healthcare

Kindred Healthcare, Inc., a top-85 private employer in the United States, is a FORTUNE 500 healthcare services company based in Louisville, Kentucky with annual revenues of approximately $7.2 billion(1).  At December 31, 2014, on a pro forma basis to include Gentiva and Centerre, Kindred through its subsidiaries had approximately 103,000 employees providing healthcare services in 2,872 locations in 47 states, including 97 transitional care hospitals, 16 inpatient rehabilitation hospitals, 90 nursing centers, 22 sub-acute units, 634 Kindred at Home hospice, home health and non-medical home care locations, 100 inpatient rehabilitation units (hospital-based) and a contract rehabilitation services business, RehabCare, which served 1,913 non-affiliated facilities. Ranked as one of Fortune magazine’s Most Admired Healthcare Companies for six years, 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 You can also follow us on Twitter and Facebook.

About Dignity Health

Dignity Health, one of the nation’s largest health care systems, is a 20-state network of nearly 9,000 physicians, 55,000 employees, and more than 400 care centers, including hospitals, urgent and occupational care, imaging centers, home health, and primary care clinics. Headquartered in San Francisco, Dignity Health is dedicated to providing compassionate, high-quality and affordable patient-centered care with special attention to the poor and underserved.  In FY14, Dignity Health provided nearly $2 billion in charitable care and services. For more information, please visit our website at You can also follow us on Twitter and Facebook.

(1)Revenues were computed by combining the twelve months ended December 31, 2014 data for Kindred, Gentiva Health Services, Inc. (“Gentiva”), which was acquired by Kindred on February 2, 2015, and Centerre Healthcare Corporation (“Centerre”), which was acquired by Kindred on January 1, 2015.

Publish date: 

Monday, April 13, 2015

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