Item 2.06. Material Impairments.

On June 30, 2009, Kindred Healthcare, Inc. (the "Company") completed the previously announced acquisition of the real estate related to six nursing centers previously leased from Ventas, Inc. (the "Nursing Centers") for $55.7 million. In addition, the Company paid a lease termination fee of $2.3 million. The Company intends to dispose of the Nursing Centers as soon as practicable.

On June 30, 2009, the Company concluded that the closing of the acquisition of the Nursing Centers and its intention to resell the Nursing Centers would negatively impact the value of the Nursing Centers and require a material impairment charge to the Company. The Company expects to record a net loss of approximately $27 million to $31 million in the second quarter of 2009 relating to these divestitures, including an expected asset impairment of approximately $26 million to $30 million, net of income tax benefit. The Company does not expect that these transactions will result in future net cash outflows.

The Company expects to account for the operations of the Nursing Centers and the loss on these transactions as discontinued operations and classify the Nursing Centers as assets held for sale when it reports its second quarter 2009 operating results.

Item 8.01. Other Events.

Incorporated by reference is a press release issued by the Company on June 30, 2009, which is attached hereto as Exhibit 99.1.

Item 9.01.

(d) Exhibits

Exhibit 99.1 Press release dated June 30, 2009.

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