Joint venture will construct and operate a 38-bed rehabilitation hospital in northern New Jersey

MORRISTOWN, NJ – 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.

Sign Up for E-News

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.”