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Atlantic Health System and Kindred Healthcare Announce Plans for Inpatient Rehabilitation Hospital

Joint Venture Will Construct and Operate a 38-Bed Rehabilitation Hospital in Northern New Jersey

December 19, 2016, Morristown, NJ and Louisville, KY – Atlantic Health System, a leading non-profit health care delivery system in New Jersey, and Kindred Healthcare, Inc. (“Kindred”) (NYSE:KND) today announced a definitive agreement to create a joint venture to construct and operate a 38-bed inpatient rehabilitation hospital in northern New Jersey. This joint venture represents the organizations’ new vision for inpatient rehabilitation services within a clinically integrated network.

The new inpatient rehabilitation hospital is integral to shaping a fully-developed post-acute care network that will enhance the seamless continuum of care throughout the Atlantic Health System family of facilities and services.

The new hospital will be the new home for the current 38 inpatient beds housed at Atlantic Health System’s Atlantic Rehabilitation flagship site, located at 95 Mount Kemble Avenue in Morristown, which is in the process of being sold.

The new facility will offer all-private rooms, supporting both enhanced clinical efficiency and elevated patient experience with targeted clinical programs including neurological, spine, trauma and complex conditions. The higher acuity of patients in facilities across Atlantic Health System and growth in trauma cases has resulted in more patients requiring inpatient rehabilitation services prior to returning home. The combination of Kindred’s expertise and a modern, state-of-the-art facility will allow Atlantic Health System to maximize its ability to serve a growing population of patients with critical needs. Subject to several regulatory and other approvals, Kindred and Atlantic Health System expect the rehabilitation facility to open by late 2018.
 
“By joining together with Kindred, which has a proven record of industry-leading clinical outcomes, we are expanding a service that our community needs and deserves,” said Brian Gragnolati, President and CEO, Atlantic Health System. “A dedicated inpatient rehabilitation facility designed to promote healing will bring a higher level of care to improve the lives of our patients and their families.”

“We are confident that our partnership with Atlantic Health System, New Jersey’s premier health system, will address the growing need for inpatient rehabilitation services in the New Jersey and New York area as we build and operate a new facility together,” said Jason Zachariah, President of Kindred Rehabilitation Services, a division of Kindred. “This quality-focused collaboration with a leading healthcare system will deliver the kind of excellent care that improves patients’ lives and enables our inpatient rehabilitation business to continuously outperform peers in key clinical measures.”

About Atlantic Health System
Atlantic Health System, headquartered in Morristown, New Jersey, is a leading non-profit health care delivery system in New Jersey. Our network includes Morristown Medical Center in Morristown, NJ; Overlook Medical Center in Summit, NJ; Newton Medical Center in Newton, NJ; Chilton Medical Center in Pompton Plains, NJ; Hackettstown Medical Center in Hackettstown, NJ; and Goryeb Children’s Hospital in Morristown, NJ, as well as Atlantic Rehabilitation, and Atlantic Home Care and Hospice. It also includes its subsidiary, Atlantic Ambulance Corporation. Atlantic Health System comprises 1,747 licensed beds, more than 14,000 employees and more than 4,000 physicians. Atlantic Health System has a medical school affiliation with the Sidney Kimmel Medical College at Thomas Jefferson University; is part of Atlantic Accountable Care Organization, one of the largest ACOs in the nation, and is a member of AllSpire Health Partners.

About Kindred Healthcare
Kindred Healthcare, Inc., a top-90 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). As of October 1, 2016, Kindred through its subsidiaries had approximately 102,200 employees providing healthcare services in 2,702 locations in 46 states, including 82 LTAC hospitals, 19 inpatient rehabilitation hospitals, 91 nursing centers, 19 sub-acute units, 647 Kindred at Home home health, hospice and non-medical home care sites of service, 104 inpatient rehabilitation units (hospital-based) and contract rehabilitation service businesses which served 1,740 non-affiliated sites of service. Ranked as one of Fortune magazine’s Most Admired Healthcare Companies for seven 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. Learn more about Kindred Healthcare. You can also follow us on Twitter and Facebook.
 
(1) Revenues based upon Kindred consolidated revenues for the twelve months ended September 30, 2016.

Morristown Medical Center

100 Madison Avenue
Morristown, NJ 07960
973-971-5000

Overlook Medical Center

99 Beauvoir Avenue
Summit, NJ 07901
908-522-2000

Newton Medical Center

175 High Street
Newton, NJ 07860
973-383-2121

Chilton Medical Center

97 West Parkway
Pompton Plains, NJ 07444
973-831-5000

Hackettstown Medical Center

651 Willow Grove Street
Hackettstown, NJ 07840
908-852-5100

Goryeb Children's Hospital

100 Madison Avenue
Morristown, NJ 07960
973-971-5200


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Atlantic Medical Group

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providers.
1-844-264-2250