November 21, 2014 Kindred Overview

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 the Company’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,” “would,” “should,” “will,” “intend,” “may,” “potential,” “upside,” and other similar expressions, are forward-looking statements. Statements in this press release concerning the Company’s business outlook or future economic performance, anticipated profitability, revenues, expenses, dividends or other financial items, and product or services line growth, together with other statements that are not historical facts, are forward-looking statements that are estimates reflecting the best judgment of the Company based upon currently available information. Such forward-looking statements are inherently uncertain, and stockholders and other potential investors must recognize that actual results may differ materially from the Company’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 the Company is unable to predict or control, that may cause the Company’s actual results, performance or plans to differ materially from any future results, performance or plans 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 the Company’s filings with the Securities and Exchange Commission. In addition to the factors set forth above, other factors that may affect the Company’s plans, results or stock price are set forth in the Company’s Annual Report on Form 10-K and in its reports on Forms 10-Q and 8-K. Many of these factors are beyond the Company’s control. The Company cautions investors that any forward-looking statements made by the Company are not guarantees of future performance. The Company 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. Kindred has provided information in this presentation to compute certain non-GAAP measurements for specified periods. A reconciliation of the non-GAAP measurements to the GAAP measurements is included in this presentation and on Kindred’s website at under the heading “investors.” 2

Nation’s Leading Diversified Post-Acute Provider With Focus on Developing Integrated Care Market Capabilities Transitional Care Hospitals (97) Inpatient Rehabilitation Hospitals (5) Hospital-Based Acute Rehab Units (102) Nursing and Rehabilitation Centers (99) RehabCare Total Sites of Service (1,899) Home Health, Hospice and Private Duty in 16 Integrated Care Markets (152) Regional Support Centers As of September 30, 2014 Integrated Care Market (12) Targeted Integrated Care Market (11) 3

Kindred Is Helping to Shape the Future of American Healthcare As the U.S. population ages, demand for patient-centered healthcare is growing rapidly – and Kindred is pioneering an integrated approach to address this demand – implementing a better model to improve clinical outcomes and patient safety, smooth care transitions and lower costs Kindred’s “Continue The Care” strategy delivers the services that patients need across the full spectrum of care, from transitional inpatient hospitalization, to post-acute rehab and skilled nursing services, to home health and hospice care Kindred is growing to implement this strategy and fostering innovation to provide more patients, in more communities, with high quality, integrated, patient- centered care in the lowest-cost setting 4

Kindred Healthcare is the Premier Provider of Rehabilitation Services and Post-Acute Care in the U.S. 5 OUR MISSION 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. OUR MANAGEMENT PHILOSOPHY Kindred’s management philosophy is to focus on our people, on quality and customer service and our business results will follow. 62, ,000 2, Kindred is Dedicated employees taking care of over Patients and residents in over locations in states

… and More Quickly… (Reducing Average Length-of-Stay) 2 Sending More Patients Home… 1 Kindred Healthcare Delivering on Quality, Value and Innovation in Patient Care Delivery Outperforming National Quality Benchmarks 535,000 Patients and Residents were cared for in settings across the continuum Kindred Hospitals, Nursing Centers, and Home Health and Hospice continue to improve on quality indicators and beat industry benchmarks … Reducing Rehospitalization 2 56% of our Nursing Center patients go home after 32 days 70% of our Hospital patients go home or to a Lower Level of Care after 27 days Reduced the total average length of stay by 10.3% in our Hospitals by 11% in our Nursing Centers Kindred Hospitals reduced rehospitalization rates by 14% Kindred Nursing Centers have reduced rehospitalization rates by 15% (1) 2013 Results (2) Same store Comparison 2013 to

Kindred’s Value Proposition and our “Continue The Care” Campaign Be a leader in helping to coordinate and deliver high quality care at the lowest cost (particularly for those patients who are the highest users of healthcare services) Lower healthcare costs by reducing rehospitalizations and lengths-of-stay in acute care hospitals and throughout an episode of care Participate in the development of new care delivery and payment models 7

Combination Places Patient-Centered Integrated Care (and Kindred’s Continue the Care Strategy) at the Forefront of Healthcare Reform Helping to shape the evolution of the American Healthcare Delivery System by improving patient outcomes, smoothing care transitions and lowering costs, by transitioning patients home at the highest level of wellness 8

$2.5 billion Revenues (3) 97 Transitional Care Hospitals (4) 7,145 licensed beds (4) 5 Inpatient Rehabilitation Hospitals with 215 licensed beds (4) $345 million Revenues (5) 201 sites of service in 13 states (4) 4,900 caregivers serving 17,300 patients on a daily basis (4) $1.3 billion Revenues (3) 2,264 sites of service served through 20,338 therapists (4) Including 102 hospital- based acute rehabilitation units (4) $1.1 billion Revenues (3) 48 Transitional Care Centers (Sub-Acute facilities licensed as SNFs) (4) 12 Hospital-Based Sub- Acute Units (4) 13 Nursing and Rehabilitation Centers (with Transitional Care Units) (4) 38 Skilled Nursing Centers (Traditional SNFs) (4) * (1)Ranking based on revenues. (2)Ranking from Provider magazine June 20, 2014 issue. (3)Revenues for the twelve months ended September 30, 2014 (divisional revenues before intercompany eliminations). #1 Operator of Transitional Care Hospitals (1) Operator of Home Health and Hospice #1 Operator of Rehabilitation Services (1) #8 Operator of Sub-Acute & Skilled Nursing Facilities (2) 9 (4)As of September 30, (5)Annualized based upon revenues (before intercompany eliminations) and operating income for the three months ended September 30, 2014.

In 2014, 65 of Kindred at Home’s 139 home health locations, or 47%, were named to the HomeCare Elite™ list of the most successful home care providers. Over 92% of our portfolio have been recognized by the American Health Care Association/National Center for Assisted Living as an award winning facility We have been recognized by our employees and healthcare community for the quality work, employee satisfaction and patient service 10 Our reputation in the marketplace