Kindred Healthcare buys a hospital and sells one

Louisville, Ky. (June 28, 2016) – Kindred Healthcare, Inc. today announced that it has completed the acquisition of an additional transitional care hospital operated by Select Medical Holdings Corporation and sold an additional LTAC hospital to Select.

Kindred acquired a leased hospital in San Antonio, Texas (44 licensed beds) from Select and sold a leased hospital in Atlanta, Georgia (72 licensed beds)
to Select as part of a previously announced agreement.

As announced on June 1, 2016, Kindred acquired four leased hospitals from Select and sold two of its
hospitals to Select.

“We have taken aggressive steps to reposition our LTAC portfolio in front of LTAC criteria. We believe
the five hospitals that we have acquired from Select will improve our ability to Continue the Care for our
patients in several important markets,” said Benjamin A. Breier, Kindred’s President and Chief Executive
Officer. “At Kindred, we remain focused on delivering the most appropriate care and quickly transitioning
patients to lower acuity care settings with the priority of returning them to independence at home while also
creating enhanced value for patients, partners, employees and shareholders.”