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Kindred Healthcare, Inc. (KND)

Q1 2008 Earnings Call Transcript

May 5, 2008 10:00 am ET

Executives

Eddie Jones – IR, Corporate Communications Inc.

Paul Diaz – President and CEO

Rich Lechleiter – EVP and CFO

Analysts

Robert Hawkins – Stifel Nicolaus

Newton Juhng – BB&T Capital Markets

Stephen Anderson – Wachovia Securities

Jeff Englander – Standard & Poor's

Andreas Dirnagl – JP Morgan

Adam Feinstein – Lehman Brothers

Operator

Good day, everyone. Welcome to the Kindred Healthcare conference call. Today's call is being recorded. At this time, for opening remarks and introductions, I would like to turn the call over to Mr. Eddie Jones. Mr. Jones, please go ahead.

Eddie Jones

Good morning. Welcome to the Kindred Healthcare first quarter 2008 conference call. This is Eddie Jones from Corporation Communications. Before the company's presentation, I would like to read a cautionary statement prepared by the company.

This conference call 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. 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 later.

Such forward-looking statements are based on 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 or performance to differ materially from any future results or performance expressed or implied by such forward-looking statements.

The company refers you to its reports filed with the Securities and Exchange Commission, including the company's annual report on Form 10-K, the company's other reports filed periodically with the SEC, and its press release regarding the first quarter 2008 operating results, for a discussion of these forward-looking statements and other factors that could affect these forward-looking statements.

Many of these factors are beyond the control of the company and its management. The company cautions investors that any forward-looking statements made by the company are not guarantees of future performance. The information being provided today is as of this date only and 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.

It is now my pleasure to introduce the speakers for today's call: Paul Diaz, President and Chief Executive Officer of Kindred and Rich Lechleiter, Executive Vice President and Chief Financial Officer. Mr. Diaz will begin the call.

Paul Diaz

Thanks, Eddie, and good morning everyone. Last night, we announced our first quarter operating results that exceeded our guidance. We also raised our earnings guidance for fiscal 2008 and provided earnings expectations for the second quarter of 2008. During the first quarter, we continued to make progress on our quality, customer service, human resource, and business goals. Progress in these critical areas translated into solid operating results in each of our three businesses.

With respect to our earnings, we reported first quarter net income per diluted share of $0.39 from our continued operations. This compares to our guidance range of $0.22 to $0.27 per diluted share.

In our Hospital division, our same-store admissions rose 5%, strengthened by both Medicare and Medicare Advantage admissions, as well as managed care and commercial insurance admissions. Our nursing center results in the first quarter significantly improved over last year as we continued to demonstrate more consistent operating performance through higher census and better quality mix. Peoplefirst Rehabilitation Services reported over $100 million in revenues and $11 million in operating income as we increased our volume of services, improved productivity, and expanded our external customer base.

Before commenting further on the first quarter results and our opportunities going forward, I would like Rich to recap the operating results.

Rich Lechleiter

Thanks, Paul. Good morning, everyone. Our consolidated revenues for the first quarter of 2008 exceeded $1 billion. Excluding the KPS business that was spun off last summer, our revenues rose 9% in the first quarter compared to the same period a year ago. Consolidated operating income or EBITDAR totaled $145 million in the quarter compared to $141 million in the first quarter of 2007. A reconciliation of EBITDAR to our consolidated results of operations is included in our first quarter earnings release, which is available on our web site www.kindredhealthcare.com.

In our Hospital division, we reported revenue growth of 6% to $488 million in the first quarter, while EBITDAR for the quarter totaled $96 million. Reported hospital first quarter admissions grew 9% compared to the same quarter last year, while same-store total admissions in the quarter were up 5% compared to the first quarter of last year. Same-store non-government admissions climbed 18% compared to the first quarter of 2007, while Medicare same-store admissions increased 3%. Overall division operating costs per admission were flat in the first quarter of 2008 compared to a year ago, as our hospital operators continued to effectively manage costs while improving the clinical outcomes.

In our Nursing Center business, revenues of $535 million were up 10% in the first quarter of 2008 compared to the same quarter last year, primarily due to higher patient volumes, favorable overall rates, quality mix improvements and acquisitions. Our Medicare and managed care census improved from last year's first quarter as we continued to invest in our operations to better care for higher acuity patients. Our quality mix revenues improved to 58% of total revenues in the first quarter of 2008 from 56% in the same period last year. Nursing Center EBITDAR for the quarter rose to $74 million, up 20% compared to a year ago. Our Nursing Center labor costs per patient day grew 4% in the first quarter of 2008 compared to the same period last year.

Peoplefirst, our Rehabilitation division, reported revenue growth of 25% to $105 million compared to last year's first quarter of $84 million. EBITDAR for the quarter totaled $11 million, up 14% from the same period last year. While we continue to manage through a very competitive marketplace for therapists, we are pleased with the progress we are making in growing our rehab business. We are continuing to sign new external therapy contracts, adding 29 new contracts in the first quarter. Professional liability costs for the quarter came in as expected. Total program costs were $16 million in the first quarter of 2008 compared to $18 million in the same quarter last year.

In terms of the balance sheet and overall liquidity of the company, our financial position at March 31 remained strong. Our cash balances at the end of the quarter totaled $17 million. We had $256 million of outstanding borrowings under our revolving credit facility at the end of the quarter, down from $275 million at December 31, 2007. Our operating cash flows for the quarter were soft and we expect that our accounts receivable collections will rebound over the balance of the year.

With respect to the 22 properties that Kindred acquired from Ventas, we have sold 16 of these facilities through March 31 for an aggregate of $73 million. We continue to believe that we will meet expectations of $80 million to $90 million in aggregate sales proceeds for all 22 properties.

In yesterday's earnings release, we raised our fiscal 2008 earnings guidance range to $1.40 to $1.50 per diluted share from $1.25 to $1.35 per diluted share in our prior guidance. We also provided our second quarter 2008 earnings guidance range of $0.29 to $0.34 per diluted share to provide more clarity around our earnings expectations for the next quarter. As discussed in the earnings release, our earnings guidance includes the estimated impact of several regulatory items recently issued by CMS. That concludes my remarks for the quarter. Paul?

Paul Diaz

Thanks, Rich. We are off to a good start in 2008 and our first quarter results demonstrate the earnings power of Kindred as we grow the top line in each of our three operating divisions and effectively manage our operating costs. More importantly, we are driving our results through improvements in our operating fundamentals, related to employee satisfaction and engagement, customer service and clinical outcomes.

On the regulatory front, CMS has issued a number of recent final and proposed changes for hospitals and nursing centers. And while these rules raise a number of policy concerns, based on our preliminary review and the continuing improvement in our operating fundamentals, we believe that we can absorb the impact of these changes over the balance of the year.

I would like to spend a few minutes talking about how we are continuing to position the company for the future. First and foremost, we continue to see opportunities to improve the working environment for our employees, to care for our patients and residents and we see the link between taking care of our people, quality, and profitability has never been clearer. We also see an environment that provides better earnings visibility for Kindred shareholders as we have worked through a number of internal and external challenges and can now focus on growing our core businesses and earnings over the next several years.

Specifically, we are excited about the opportunities to grow and continue to improve our nursing center and hospital operations, the organic growth opportunities in our rehabilitation business and our hospital development program. In our Nursing Center and Hospital divisions, we see more opportunities for our service line development and sales and marketing efforts to continue to fill unused capacity. We believe that our acquisition and development strategy, which is focused on our targeted cluster markets, will continue to provide opportunities to invest operating cash flows and grow earnings. Our continued focus on patients, customers, and therapists, we believe puts Peoplefirst Rehabilitation in a strong market position to pursue our organic growth strategy and selective acquisitions.

This concludes our formal remarks and we welcome your questions.

Question-and-Answer Session

Operator

(Operator instructions) And we will take our first question from Adam Feinstein with Lehman Brothers.

Paul Diaz

Good morning, Adam. Adam?

Operator

Adam, your line is open, please go ahead. Adam, if you can please check your mute button. And we will move on to our next question with Robert Hawkins with Stifel Nicolaus.

Paul Diaz

Hi, Rob, good morning.

Robert Hawkins – Stifel Nicolaus

Hey, good morning, great quarter.

Paul Diaz

Thank you, sir.

Robert Hawkins – Stifel Nicolaus

I guess the first thing is maybe spend some time on guidance. Your guidance more or less has the quarter baked in. You really – and some of the deleveraging baked in. So you are really not raising the outlook for the remaining part of the year. Is that correct, the way I'm looking at it?

Paul Diaz

I would say with one notable exception that our previous guidance, our budgets, as we always do, we have talked about assumed the statutory market basket adjustments. So, in the context of the proposed rules, those are negated by the adjustments on the forecasting era. So we are absorbing a $4 million to $5 million reduction against our original guidance. So in layman's terms, or at least as an operator, I think we are growing through that in the fourth quarter.

Robert Hawkins – Stifel Nicolaus

Okay. So that was what the net – because they said it was a net impact of about minus 0.2 or minus 0.3%. Is that really the way it kind of played out when you guys looked at the numbers the way CMS was couching it? Or was it the way they tinkered with the forecasting adjustment? It's a little bit different.

Rich Lechleiter

It is fairly complicated in terms of looking at every different provider's mix of facilities and locations and things. But, for the most part, I think for us and for most of the industry, that is fairly accurate. So as I said, it is a $4 million to $5 million impact in the fourth quarter that we believe, again without any change in our current view around malpractice or anything else, that we think we can continue to grow and through our new hospitals and quality mix improvement in our nursing homes and just steady as you go operations.

Robert Hawkins – Stifel Nicolaus

Okay. Then for the quarter, was there a way to quantify the flu impact for you guys? Because I know maybe not directly, but it fills the hospitals up. They maybe push patients out faster. How did that really play into your numbers this quarter?

Paul Diaz

Clearly, we remind folks, and again we are trying to do a better job – Rich and Hank are working hard on helping investors understand the quarterly volatility, particularly in Q2 and Q3. But, we did have a strong flu season, as was reflected in other providers' numbers, and that clearly benefited the hospitals and the nursing homes. But I wouldn't underestimate the progress we are making in our sales and marketing efforts as well, the growth in the rehab patients that we are seeing and that there is a little bit of a negative consequence in our nursing facilities because the flu season also hurt the custodial occupancy there, as we had bans on admissions because of the flu, not because of operational issues. There's a rolling impact of that. But, on balance, there's no question that we benefited from that and that we have improved and continue to improve demonstrating our value proposition to commercial payers and managed care and Medicare Advantage. We are seeing in the hospitals and nursing homes in many markets growth in that book of business and hope to continue that.

Robert Hawkins – Stifel Nicolaus

Okay. One last one is Peoplefirst really rebounded nicely. What is going on in that marketplace? I know you had signed a bunch of contracts going into the fourth quarter and in the fourth quarter. Was it just those playing out or is there kind of a nice rebound in general in contract therapy and nursing homes?

Rich Lechleiter

There was a couple of things going on. We have seasonality in Q2 and Q3. Q1 and Q4 are our strongest quarters in rehab because of the mix of patients that we typically get. But you are seeing, as we talked about last quarter, the stabilization of a lot of the new business, the benefit of our handheld technology. We are seeing productivity gains in those sites of service where our handheld technology is really helping therapists and it is improving accuracy and improving our responsiveness to things like probiotics and things. We feel good about the quality of the revenues and the service we are providing for our external customers. Later in the year, the wage and benefit pressures are tougher. But, we have made some real progress there as well. Turnover is down again to like 13% in Q1. So those kinds of things really help and we are also benefiting from that we are continuing to grow and our patients benefit from the Part B part of the business. We are doing a better job of both managing the Part A and the managed care rehab needs of our patients, but the Part B needs of our custodial patients as well, and that is good for everyone. So pretty much the rebound we expected. Again, understanding that Q2 and Q3 are a little softer in that business, but we are growing the top line. So over the longer-term, we are really excited about the trajectory there.

Robert Hawkins – Stifel Nicolaus

Great, thanks. I will jump back in the queue.

Operator

We will take our next question from Newton Juhng with BB&T Capital Markets.

Newton Juhng – BB&T Capital Markets

Thank you very much. A quick question again on the new guidance here, Paul and Rich. The medical malpractice costs that we talked about in the last quarter are being – an assumption around $16 million or so a quarter. With the new guidance, is there any change in the assumptions on that front?

Rich Lechleiter

Hi, good morning. No, not really. We did our normal review in Q1 and there was very little movement in terms of the reserves or the numbers from what we otherwise anticipated on the last call. So the guidance that you see today still maintains about a $64 million annual cost for med mal.

Newton Juhng – BB&T Capital Markets

Okay, that's helpful. Then the other thing I was wondering about was employee turnover rate on the hospital business, where are we currently at, and are there any expectations for movement in that going forward?

Paul Diaz

Yes, one of the things I'm pretty pleased about is the first quarter, for those of you that have the opportunity to attend our Investor Day tomorrow, you'll see the most recent numbers. But in all divisions, including this building, where we did a lot of work to spin off KPS, turnover in each division is down year-over-year and down in Q1. Our hospital turnover in Q1 is down to 25%. The nursing center turnover is down to 48%. That is below industry benchmarks. Peoplefirst is down to 13%. Our home office here, our support center is down to 5%. Kindred overall is down to 37%. Now that is down from 81% in '01. So that is, in our view, critical to advancing the clinical opportunities, to growing admissions, maintaining physician satisfaction, providing good care, getting contract labor out of our buildings. It's the source of all opportunity as we see it. As you can see, we are focused on it and I have got 70 folks from our HR task force, as a matter of fact, downstairs and they are all (inaudible) about how we can continue to improve this, this year.

Newton Juhng – BB&T Capital Markets

Great. Good to see the focus is on that side of the business there. Can I also ask you a quick question on the revenue quality mix improving to 58.3% in the nursing center business? I'm just kind of curious as to where you think that could go over the course of time and what timeframe are you projecting?

Paul Diaz

Higher.

Newton Juhng – BB&T Capital Markets

Okay, Paul. I will leave it at that.

Paul Diaz

I'm kidding. It's a good quarter. I want to have a laugh or two with you guys. We clearly think we have more opportunity there. Tomorrow, Lane is going to talk about how we keep that moving. The expansion and capital and staffing in our transitional care units, our new sub-acute units, Kathy Wiljanen's progress with managed care contracting. A lot of things are continuing to move forward and the quality is the underpinning for that. But, again, we caution folks on seasonality, caution folks that this is not a straight line. But, as I look at the balance of the year and going into next year, we think that we have the opportunity to continue to attract high acuity patients and continue to improve our quality mix and our Medicare Advantage book of business. We will be talking a lot more about that at our Investor Day tomorrow.

Newton Juhng – BB&T Capital Markets

Okay, great, Paul. I don't want to front run too much of your day, so thanks. I will end the questions here.

Paul Diaz

Great to have you. Thank you.

Operator

We will take our next question from Stephen Anderson with Wachovia Securities.

Stephen Anderson – Wachovia Securities

Sorry, guys. My questions were already addressed. Thanks.

Paul Diaz

Thanks, Steve.

Operator

We will go next to Jeff Englander with Standard & Poor's.

Jeff Englander – Standard & Poor's

Good morning, guys.

Paul Diaz

Good morning.

Jeff Englander – Standard & Poor's

Paul, you spoke very in depth about turnover. Can you talk a little bit about other things that may be happening on SW&B? Because that came in fairly good, and same thing on supplies in terms of expenses.

Paul Diaz

One of the things that we are clearly benefiting from and we talked about this the last couple of quarters, I think you have seen steady progress the last few quarters since the KPS spin-off. We have taken some steps organizationally. Frank Battafarano is now our Chief Operating Officer. Ben Breier is the President of the Hospital division, a very seamless transition there. And it is allowing us to really focus on the key success factors as we talk about them and how they relate to driving clinical and financial performance. So I think what you are seeing is the benefit of a lot of – cumulative effect of years of hard work, but also just increased focus and the ability to really focus on our operations, on contract labor, on productivity through the use of new technology, on executing on our sales and marketing plans, on getting our operators more engaged, on how we manage our capital, and thinking about $400,000 investment in a transitional care unit and what the payback needs to be there and having people commit to that. And our overall performance improvement process, which is really geared to affecting the quality of financial statements, the quality of our clinical results, and performance improvement in all the things we do. And I think we are at a point as an organization that we are maturing and you are starting to see the benefit of that. We will have other bumps along the road. I promise you that with over 630 sites of service, one of the opportunities still is to get the outliers of performance. But we talk a lot about that and the opportunities to get those facilities back on track, and as we take that variation of performance out of the portfolio through best practices, it allows for organic growth over the longer term and we focus a lot on that too.

Jeff Englander – Standard & Poor's

Great. Can you also talk about – you mentioned earlier in the call that you have worked through a number of internal and external challenges and obviously KPS is done and out of the way. You have had a number of rate rulings from CMS, so a lot of the uncertainty and, I presume for some of the employees, the anxiety has been lifted. Can you talk about as a practical matter some of the things that employees are now focusing on that they were not able to focus on before?

Paul Diaz

I think that's a very good point. I think for the most part, we have done a good job of keeping people focused. But in the hospital division in particular – we have some of this now in the context of some of the RUGs issues. We are better able to focus on patient care and the outcomes, being efficient and improving value when the rules aren't changing on us every 6 months to 12 months. And there's no question that changes in short, say outlier policy and other things distract operators from the main charge. Not saying that there aren't legitimate policy issues that we all need to continue to work on. But, we are at a point like we have not been in the over six years I have been, where we really can focus on our operations, we really can focus on growth without a lot of the distraction. But we still are challenged and see that longer term too, of engaging in the broader policy discussions about rationalizing the post-acute space. We are committed making sure that patients that belong in IRFs and are best-served there, go to an IRF. The patients that are medically unstable and benefit from LTACH services, can go there. The patients that we can cost effectively get good clinical outcomes for in our PCUs and sub-acute units in our nursing homes, that they benefit from the access to those services as well. So more to follow. But we do have, even in the context of these proposed rules, more visibility operationally than we have ever had. Notwithstanding that we still have some policy concerns that we will engage with CMS and members of Congress about here in the months to come.

Jeff Englander – Standard & Poor's

Great. Thanks very much.

Paul Diaz

Thank you.

Operator

We will take our next question from Andreas Dirnagl with JP Morgan.

Andreas Dirnagl – JP Morgan

Hi, good morning guys. Paul, I don't yet again want to sort of take your thunder away from tomorrow, but I think you were sort of referencing the fact that you think your cluster strategy is starting to sort of kick in here and one of the driver of the benefits in the quarter. I was wondering maybe you could just give us a little bit of a preview or just remind us sort of where you stand on that, what the idea is, where you have done it, and where you think it can go.

Paul Diaz

Yes, I need to do a better per job of resetting the table for everyone about the cluster market strategy. It is something I'm very excited about. It is commonsensical in – from my first company and for anyone who thinks about the importance of being local, being visible as an employer, sharing clinical resources, the opportunity to do collaborative marketing, the discharges coming out of our LTACHs that we hope to capture in our skilled nursing facilities. But, that is really a five-year endeavor.

We have a number of successful pilots in our cluster market strategy and we think that there is clearly longer-term opportunity to capture. For example, discharges coming out of our LTACHs and do a better job of participating in the care and management of folks. But I would tell you what you are seeing now is more the benefit of just sort of fundamentals, improvement in clinical competency, improvement in sales and marketing and the efforts that we've made in that regard, and very little of this – in some markets, certainly, we are seeing some of the benefits of the pilots around cluster market. But, tomorrow – again, maybe my fault, people getting ahead of us in terms of what cluster markets are or not. Clearly, we are excited about it. Clearly, it is a place to allocate capital more rationally in terms of acquisition and development activity. But, what you are seeing now is really the middle of our pyramid, developing physician relationships, better sales and marketing, performance improvement, just real basic stuff. And as we'll talk about tomorrow, the cluster market strategy is part of a longer-term, how do we just work smarter, leverage the skills between our LTACHs and our nursing homes better, and those kinds of things.

Andreas Dirnagl – JP Morgan

Okay, great. Then another question. I'm just more curious I think than anything else. You've talked in the past about despite the fact that we've gotten clarity now on the LTACH RUGs and things like that, you thought the moratorium and other changes might impact some of the smaller providers. I was wondering if at least anecdotally you have seen any sort of those smaller providers begin to struggle or even shut down at this point.

Paul Diaz

There were a lot of folks who last year, I think, were having a difficult time. I don't really have a good sense today if – my sense is that the legislative fixes have helped stabilize the industry. We believe and need a broad coalition of successful LTACH providers across the country to serve the needs of these patients. So, we also have I think a model that is slightly different than others. We like it. We think it is proving itself. Our high acuity model we think is serving us well, particularly with the commercial payers. But, we continue to support and want our colleagues to be successful because that makes for a more vibrant industry over the longer-term. Acquisitions in that area, as we've talked about before, is really not our focus. We have got seven hospitals we have opened in the last 12 or so months. We have got seven more hospitals under development under the moratorium. We have got a lot of unused capacity within our own portfolio and that is the most – those are the activities, those are the opportunities that we think can drive the most EPS growth over the next 24 months.

Andreas Dirnagl – JP Morgan

Great. Thank you very much.

Operator

(Operator instructions) At this time, we will go next to Adam Feinstein with Lehman Brothers.

Adam Feinstein – Lehman Brothers

Okay, thank you. I apologize about earlier. Just wanted to ask a couple questions here, Paul. Maybe just to start, you guys have done very good in terms of growing your non-Medicare volumes within the LTACH business. Can you talk a little bit about the process there in terms of what that entails and what investments you need to make in order to grow the non-Medicare LTACH volumes? I have a quick follow-up question.

Paul Diaz

We have grown the Medicare volume as well this quarter, which was something that we had struggled with the last couple quarters, up about 3% I believe this quarter. I have said this to members of Congress, you don't have to look much further than the growth of our commercial business and Medicare Advantage business to see that people are embracing the value proposition of our LTACH services. And a part of that is – and not to say that we exclusively do this, but when we build an LTACH, we have ICUs that replicate and don't compromise at all the kinds of clinical capabilities, technology, and staffing that (inaudible) in a short-term acute care hospital. That is how we ensure a successful transition from a short-term acute care hospital. And then, a collaborative team of therapists and clinicians and dietary folks really converge on a patient to deal with the whole patient, not just the trauma that led to the short-term acute care admission. That is why we have the successful ventilator weaning rates that we have. That is why we cure wounds that many others can't cure and we have the kind of clinical outcomes that we do. The discharge planners from the payers see that. They see that we positively affect avoidable readmissions back to short-term acute care hospitals. We don't have in-house acquired pressure source [ph]. We don't have bloodstream infection rates that kick people back. Those are things we monitor and reward performance on. And I think that value proposition is becoming better known and our marketing and sales efforts will hopefully get the story out more in the months and years to come.

Adam Feinstein – Lehman Brothers

Okay, thank you for that. And then just a follow-up question. I apologize, I had to jump off the call because there's a few calls going on now. But just with respect to the guidance, you raised the margins, but didn't raise the revenue. So just curious in terms of which expense line items you are seeing the leverage there. If you touched on that, I can follow up offline, but just wanted to get some color in terms of the update, the margins embedded in the guidance. Thank you.

Rich Lechleiter

This is Rich. Good morning, Adam. I think the good news in Q1 certainly is that most of the story is top line driven. I think if you look at each one of these businesses, in terms of our overall volume, quality mix, etc., it really does demonstrate the earnings power of the company when all three businesses are hitting on the top line. I think in terms of our expense growth, I think we continue to see the wage rate pressure that Paul talked about earlier, not only in the therapy side of the business, but also in the nursing home and the hospital side where wage rate pressure, depending on the business you are in, is anywhere from 3% to 5%. So I think we kind of continue to see that. That's certainly one of the reasons that Q1 and Q4 are so strong for us relative to our costs, relative to that volume growth. We talked about the malpractice cost earlier; we have really not changed our view around the malpractice costs for this year, it's still around $64 million. And we will continue to update that quarterly. But again, a strong quarter here. We have not really reflected much change in the guidance for the balance of the year. We will kind of see how that plays out. But, clearly off to a good start.

Adam Feinstein – Lehman Brothers

Okay, thank you. Great quarter.

Paul Diaz

Thanks, Adam.

Operator

It appears we have no further questions at this time. I'd like to turn the conference back to our speakers for any additional or closing remarks.

Paul Diaz

We just want thank you all for your participation, we know it's a busy morning, and your support. We will keep working at it and for those of you that are able to participate in our Investor Day tomorrow, we'll look forward to seeing you there. Thank you very much.

Operator

Once again, that does conclude today's call. We do appreciate your participation. You may disconnect at this time.

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Source: Kindred Healthcare, Inc. Q1 2008 Earnings Call Transcript
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