Kindred Healthcare, Inc. (Kindred) is a healthcare services company that through its subsidiaries operates hospitals, nursing centers, institutional pharmacies and a contract rehabilitation services business across the United States. At December 31, 2005, Kindred's hospital division operated 74 long-term acute care ("LTAC") hospitals (5,694 licensed beds) in 24 states. Its health services division operated 242 nursing centers (30,869 licensed beds) in 28 states. Kindred also operated a contract rehabilitation services business which provides rehabilitative services primarily in long-term care settings. Kindred's pharmacy division operated an institutional pharmacy business with 39 pharmacies in 24 states and a pharmacy management business servicing substantially all of our hospitals. In recent years, Kindred completed certain strategic divestitures to improve its future operating results. AmerisourceBergen and Kindred signed a non-binding letter of intent in 2006 to combine their respective institutional pharmacy businesses, PharMerica Long-Term Care and Kindred Pharmacy Services into a new, independent, publicly traded company.