EMPLOYEE READINESS GUIDE YOUR PASSPORT TO KINDRED

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1 EMPLOYEE READINESS GUIDE YOUR PASSPORT TO KINDRED

2 Welcome to Kindred We re delighted that you are joining the Kindred family and look forward to welcoming you on your first day. Together, we have started a journey to create the leading provider of post-acute care. This is an exciting time for Kindred as we have the opportunity to help shape the evolution of the American Healthcare Delivery System by creating a more seamless care experience. We admire the hard work and dedication you have put into making Gentiva an outstanding organization and want to share our mutual best practices as we become an even stronger organization. We have created this Employee Readiness Guide Your Passport to Kindred to support your transition. It provides helpful information, resources and contacts to welcome you into the Kindred family. 1

3 GETTING TO KNOW KINDRED Kindred Healthcare is the largest diversified provider of post-acute care services in the United States. As a Fortune magazine Most Admired Healthcare Company for six years in a row, our mission is to promote healing, provide hope, preserve dignity and produce value for each patient, resident, family member, customer, employee and shareholder we serve. We deeply believe in living out our mission in everything we do, from financial planning to patient care, and recognize the importance that our mission brings to providing our communities with purposedriven work. We also strongly believe that our employees are our greatest assets, and through their hard work and endless commitment to our patients and families, we continue to receive awards for our accomplishments as a leading healthcare provider. As a new member of the Kindred family, we would like to highlight some of our exceptional Kindred services and emphasize that we look forward to growing and strengthening these services with you now onboard: Inpatient rehabilitation Transitional care Patient education Hospice services Cardiac and pulmonary care Neurorehabilitation Wound care Disease and pain management Medication management and education Home health Contract rehabilitation services Physical, occupational and speechlanguage therapy 2

4 Kindred Healthcare Is One of the Leading Providers of Rehabilitation Services and Post-Acute Care in the United States Kindred is 105,200 Dedicated teammates taking care of over 1,100,000 Patients and residents in 2,880 locations in 47 States 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. 3

5 Kindred with Gentiva Creates Multiple Platforms for Care Coordination and Growth Kindred #1 Operator of Transitional Care Hospitals (1) #1 Operator of Home Health and Hospice (1) #1 Operator of Rehabilitation Services (1) #8 Operator of Skilled Nursing Facilities (2) 97 Transitional Care Hospitals (4) 7,145 licensed beds (4) 5 Inpatient Rehabilitation Hospitals with 215 licensed beds (4) 694 sites of service in 41 states 154 in Kindred s Integrated Care Markets 38,900 caregivers serving 127,300 patients on a daily basis 2,275 sites of service served through 20,338 therapists (4) Including 113 hospital-based acute rehabilitation units (4) 48 Transitional Care Centers (Subacute facilities licensed as SNFs) (4) 12 Hospital-Based Subacute 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). (4) As of September 30,

6 Kindred s National Presence and Integrated Care Market Penetration Kindred s 23 current and targeted Integrated Care Markets are among the top 30 Metropolitan Statistical Areas (MSAs) in the United States Significant patient opportunity for improved care transitions and choice provides revenue synergies from referrals across the combined care delivery platform NATIONAL PRESENCE ACROSS 47 STATES Transitional Care Hospitals (97) Inpatient Rehabilitation Hospitals (16) Nursing and Rehabilitation Centers (99) Kindred at Home Locations (152) Hospital-Based Inpatient Rehabilitation Units (102) RehabCare External Customers (1,899) National and Regional Support Centers Gentiva Locations (493) Integrated Care Markets (23) Source: Kindred and Gentiva filings and investor presentations. Note : As of September 30,

7 Kindred Healthcare Delivering on Quality, Value and Innovation in Patient Care Delivery OUTPERFORMING NATIONAL QUALITY BENCHMARKS Kindred Hospitals, Nursing Centers, and Home Health and Hospice continue to improve on quality indicators and beat industry benchmarks SENDING MORE PATIENTS HOME (1) 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 AND MORE QUICKLY (REDUCING AVERAGE LENGTH OF STAY) (2) Reduced the total average length of stay by 10.3% in our Hospitals by 11% in our Nursing Centers... REDUCING REHOSPITALIZATIONS (2) Kindred Hospitals reduced rehospitalization rates by 14% Kindred Nursing Centers have reduced rehospitalization rates by 15% Market-leading care outcomes position us well for future reimbursement characterized by bundled payments, pay-for-performance, gain sharing, at-risk contracts and capitated population health arrangements. (1) Kindred 2013 Results. (2) Kindred Same-store Comparison 2009 to

8 Preparation for Day 1: What Do I Need to Know? EMPLOYEE PAPERWORK As a part of our onboarding process, the Gentiva and Kindred Integration Teams worked closely to identify the necessary activities to effectively welcome you into the organization. If you have additional questions regarding your employment status, please reach out to your designated HR Contact. We also have a set of Frequently Asked Questions (FAQs) at the end of this guide that may provide helpful information and answers. REPORTING STRUCTURE Please continue to coordinate any paid time off (PTO), work schedules, performance reviews and career goals with your manager as you are doing today. Our Integration Teams are busy working to identify the Kindred executive level reporting structures and will share this information with you as soon as it is available. Keep in mind, this integration effort will take time; by that we mean that decisions regarding new reporting structures, organizational changes and job opportunities will take time. We know that this is an important topic, and as soon as information is available, we will share it with you. PAYROLL SCHEDULE You will see no changes to your payroll services or cycles throughout To provide you with the most effective and efficient pay system possible, our Integration Team is currently working to identify best practices across our combined organization. We know this is an important topic and aim to share more information about any potential changes in the fall of MY GENTIVA BENEFITS Your Gentiva benefits will remain unchanged throughout To ensure you have access to the information you need about your benefits, will remain fully operational until January 1, While you will be unable to change your benefit elections at this time, you will be able to use the My Gentiva Benefits site to locate information about Gentiva benefit programs and identify key points of contact to address benefit needs throughout the remainder of the year. GENTIVA IT HELP DESK To ensure that you are fully supported on Day 1 and beyond, Gentiva s IT Help Desk and the Gentiva Associate Quick Help Site ( gentiva.com/) will remain fully operational and unchanged. If you have any IT issues, please continue to reach out to the Gentiva IT Help Desk and look for additional information over the coming week on IT-related updates. HELPFUL INFORMATION We encourage you to take some time over the next few days to review the following Kindred resources. Kindred Blog: (kindredcontinuum.com) The Kindred blog covers a variety of topics, including background on Kindred, and communications with our patients, friends and family. Better Together: (kindred.com/employees) This weekly integration newsletter provides FAQs on topics related to PTO, stock options, job opportunities and much more. If you have additional questions on the integration, please continue to GentivaBetterTogether@ kindred.com. Also, be sure to look for new editions.

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10 On Day 1: What will change on Day 1? Our hope is that Day 1 will feel like business as usual for all Kindred employees. The following high-level Day 1 information should address questions you may have. ACCESSING THE BUILDING Where you report and how you access the building will not change on Day 1. While you will be part of the Kindred family, for the time being please continue to use your Gentiva badge to access the buildings. COMPUTERS AND TABLETS On Day 1, please bring and continue to use your Gentiva-issued hardware. We will keep you informed throughout the year about new technologies available to you and will let you know on an individual basis when you are eligible for technology upgrades. MOBILE PHONES For many of us, mobile phones are critical in enabling us to complete our daily work. It s important to us that during this transition period we are able to continue providing our patients with uninterrupted care. If you currently have a mobile phone that you use for Gentiva business purposes, you will keep your existing phone and telephone number on Day 1. Our Integration Team is currently analyzing business mobile phone plans from both organizations and will provide updates around new operational procedures by summer The plan is to have a unified mobile phone solution in place for the combined company by the end of PRINTERS, FAX MACHINES AND SCANNERS The ability to print and share information is a foundational component of productivity. On Day 1 you will see no change in how you access printers, fax machines and scanners at your designated office locations, which includes approved home offices. GENTIVA/KINDRED As you do today, you will continue to have access and use your Gentiva to read and send messages. There will be no changes to your history, access or address starting Day 1. We are currently working to develop a plan for providing you with a Kindred address and will keep you informed of any updates. So, what will change starting Day 1? On Day 1, we will merge the Kindred and Gentiva Microsoft Outlook address books. This will enable all employees, both Kindred and Gentiva, to look up each other s addresses.* We plan to provide you with additional information regarding your Kindred set up, IT contact information and steps for remote access over the coming weeks. FILES AND DATA Maintaining secure patient information is at the heart of our business, and we want to ensure that we effectively manage this throughout the transition process. We understand that you will likely have files that are critical to your job function on your Gentiva laptops and may need to share the information with your new Kindred colleagues. There is a process in place to ensure we are maintaining the proper confidentiality and * The addresses will appear in the following format to define the legacy company of each person: John Doe [Kindred], Jane Doe [Gentiva] 9

11 data security protocols as you move these files to Kindred systems: There will be a strict process put in place to transfer any files that you may need from your Gentiva devices and shared file systems to your Kindred computer. More details will be provided once this process is finalized. You should NOT transfer files in any other way outside of this process. Any files you have on your Gentiva computer will not automatically transfer with you, but will continue to be accessible through your Gentiva laptop computer. Details will be forthcoming on the guidelines regarding the type of information that can be transferred and the approved procedures/ instructions for those activities. EXPENSES Expense policies will remain unchanged for the remainder of Please continue to consult Gentiva policy and utilize your manager to approve all business-related expenses. TRAVEL REIMBURSEMENT We understand that some roles require additional, reimbursable travel. You should continue to expense mileage and time per Gentiva policy until further notice. We are reviewing the current processes for both Gentiva and Kindred and will communicate new processes for requesting and booking travel and reimbursement when changes are made. POINTS OF CONTACT As you transition into the Kindred family, we want to make sure you are equipped with the proper contacts to help answer all your questions. General Kindred Inquiries: GentivaBetterTogether@kindred.com Gentiva IT Helpdesk: Gentiva Benefits Needs: CORPORATE CREDIT CARD If you have a Gentiva corporate credit card, it will be discontinued. Kindred does not have a corporate credit card program and Gentiva corporate cards will not be replaced when they reach the current expiration date. Employees who are required to travel on behalf of the company should charge expenses on their personal credit cards. Kindred s prompt reimbursement of expense reports provides employees with funds to pay their credit card bills by the next due date. 10

12 Frequently Asked Questions GENERAL What is my role in the transition? It is important that we remain focused on managing our existing business and continue to provide our patients with the high-quality service they have come to expect from us. Therefore your work is essential to ensuring the success of the combined company as the Integration Team works to identify the best organization structure, benefits package and IT technology service. Please continue to perform your daily tasks with the same care and compassion as you do each day. As decisions are made throughout our first year as a combined company, we will communicate any new processes or protocols that would affect your day-to-day activity. Will I be an employee of Gentiva or Kindred? At close, Kindred will aquire all of Gentiva s stock. That means after the close, you will become part of the Kindred family. You will, however, continue to be employed by the same Gentiva entity that employed you before the close. What should I do if I am approached by the media with questions about the acquisition? Kindred-related matters must be communicated to the public in a consistent and forthright manner. If you are contacted by the media, kindly inform them that you are not authorized to speak on behalf of Kindred and request the following information: Name Phone number Fax number Deadline Please send a description of the request and contact information to the Senior Vice President of Enterprise Marketing and Communications, Susan Moss, and/or Senior Director of External Communications, Eric Benmour. Susan Moss, Senior Vice President, Marketing and Communications Susan.Moss@kindred.com Work: Cell: Eric Benmour, Senior Director, External Communications Eric.Benmour@kindred.com Work: Cell: What do we know about Kindred s culture, particularly how they make decisions and execute? Kindred is dedicated to creating a culture of Service Excellence, which is defined by Kindred s six success factors: Taking care of our people Taking care of our patients, residents and customers Growing the business Realizing efficiencies Managing our capital wisely Achieving organizational effectiveness through performance improvement This measured and thoughtful approach has allowed Kindred to build a strong culture focused on its employees, patients, and growing a successful and efficient business. All decisions, including decisions as we combine our companies, will be measured against these six success factors to ensure they are impactful. What is Kindred s dress code policy? Our employees put our best foot forward in representing Kindred with our patients, families and communities. We ask that employees that have direct contact with patients, such as our registered nurses and physical therapists, wear appropriate 11

13 attire and identification while on duty. For those employees working in Support Centers, we ask that they wear the appropriate business casual attire. HR What will happen to my accrued Gentiva PTO hours in 2015? We will continue with Gentiva s healthcare benefits plan through the end of 2015, which includes your PTO program. The number of hours you earn, the maximum sick bank you may maintain, when and what amount of time rolls over, will not change in We are committed to communicating any potential changes as early as possible to help you plan ahead. Who will I need to contact to schedule my PTO? For the remainder of 2015 your PTO process will remain the same, which includes your PTO request practices. We ask that you communicate with your managers about scheduled and unscheduled PTO plans to assist them in ensuring the proper amount of coverage is provided. What does this mean for our Gentiva stock? Under the terms of the agreement, Gentiva shareholders will receive $14.50 per share in cash and shares of Kindred common stock per share of Gentiva common stock that they own. We value your investment in Gentiva and your continued support in Kindred. When can Gentiva Stockholders expect to receive the money and stock from the purchase of Gentiva? An exchange agent on our behalf will send to each record holder of Gentiva common stock a letter of transmittal and instructions for surrendering or transferring Gentiva shares in exchange for the merger consideration. If you are a stockholder of Gentiva, you were sent a proxy statement of Gentiva and a prospectus of Kindred that will include more information on the process for receiving your merger consideration. We urge you to read these materials. What will happen to Gentiva s Tuition Assistance program? We understand tuition assistance is an important benefit to Gentiva and Kindred employees. In 2015, you will see no changes to the current Tuition Assistance program. Kindred also has a Tuition Assistance program available to full-time and part-time employees for job-related courses. Our Integration Teams will look at both programs to ensure that we have the best Tuition Assistance program in place for our combined company in Once the transaction is complete, will I be able to transfer to a new role or office? The combined company has a significant presence across the country, which we expect will present countless opportunities. Because Kindred and Gentiva will remain on their legacy pay and HR systems, employees will be unable to transition roles or locations for the remainder of Once we fully integrate our systems in 2016 we encourage you to speak with your managers about utilizing internal transfers as a tool to achieve your professional and personal development goals. REFERRALS How will the acquisition affect both companies contracts with payers/vendors now that the deal is completed? There should be minimal to no impact to the payer contracts during the first quarter of We are working together to identify our referral resources and determine the best path forward to ensure continuity of care within integrated markets. 12

14 TECHNOLOGY What type of telemonitoring equipment is Kindred currently using in patients homes? Is this technology be available to me? Kindred understands the importance of investing in easy-to-use, up-to-date telemonitoring equipment for the benefit of both our employees and patients. We have invested in six different electronic information and telecommunications systems at Kindred at Home. These systems range from telemonitoring via phone calls to technology solutions that enable our employees to record and monitor vitals such as blood pressure, weight and pulse. As we progress in the integration, we will identify the best tools to use at the new combined company. If I am using my Gentiva address on Day 1, how will I be able to communicate with the rest of the Kindred organization? On Day 1, we plan to merge Gentiva and Kindred employee Outlook address books. While you will not have a Kindred account immediately, we want to be sure you are able to remain productive and work with your colleagues effectively. Should I update my voic on my Gentiva mobile/desk telephone before transferring to Kindred? No, you do not need to update your mobile or desk telephone voic greeting. Is GentivaLink continue to be used or will we be on a combined electronic records platform? As a healthcare organization, effective, reliable technology systems are at the heart of us being able to provide quality patient care. The System Evaluation Team is evaluating the Gentiva and Homecare Homebase (HCHB) systems to determine a go-forward path. On Day 1, both systems will remain in place. The team aims to communicate a decision on the preferred technology system in the summer/fall of 2015 and will implement a phased rollout to ensure the technology is adopted successfully across the organization. If I currently have a company-issued mobile phone, will I be issued a new one by Kindred? No, you will keep your existing mobile phone and number. 13

15 Glossary of Kindred-Specific Terms Term ARU BYOD CTM GCT HD HIE ICM IRF KAH Knect LTAC MOBI NCD RBT RHB Support Center Definition Acute Rehabilitation Unit Bring Your Own Device Care Transition Managers: Individuals who follow patients with specific diagnoses and/or risk factors through the care continuum General Compliance Training: Training focused on Kindred s Compliance Program, the Code of Conduct, and other regulatory and compliance topics Hospital Division Kindred s enterprise-wide Health Information Exchange, which facilitates the sharing of electronic patient data between Kindred sites and external healthcare providers Integrated Care Market Inpatient Rehabilitation Facility Kindred at Home Kindred s intranet portal, which houses employee news and resources Long-Term Acute Care Kindred s mobility support service Nursing Center Division Role-Based Training: Training focused on the specific, role-related responsibilities RehabCare, the rehabilitation services division of Kindred Kindred s Support Center would be the equivalent to Gentiva s Corporate Office 14

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