SEC FORM 4

SEC Form 4

FORM 4

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940

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Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

1. Name and Address of Reporting Person^*

TEPPER DAVID A

(Last)

(First)

(Middle)

C/O APPALOOSA MANAGEMENT LP

26 MAIN ST FIRST FLOOR

(Street)

CHATHAM

07928

(City)

(State)

(Zip)

2. Issuer Name and Ticker or Trading Symbol
KINDRED HEALTHCARE INC [ KIND ]

5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

Director	X	10% Owner
Officer (give title below)		Other (specify below)

3. Date of Earliest Transaction (Month/Day/Year)
08/18/2003

4. If Amendment, Date of Original Filed (Month/Day/Year)

6. Individual or Joint/Group Filing (Check Applicable Line)

	Form filed by One Reporting Person
X	Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	3. Transaction Code (Instr. 8)		4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5)			5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4)	6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	Code	V	Amount	(A) or (D)	Price		6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
Common Stock	08/14/2003		S		140,000	D	$29.47	0	I⁽¹⁾	See⁽²⁾
Common Stock	08/14/2003		S		50,000	D	$29.69	0	I	See⁽²⁾
Common Stock	08/14/2003		S		250,000	D	$29.7	0	I	See⁽²⁾
Common Stock	08/14/2003		S		5,000	D	$29.87	0	I	See⁽²⁾
Common Stock	08/15/2003		S		8,400	D	$29.31	0	I	See⁽²⁾
Common Stock	08/18/2003		S		25,800	D	$29.45	0	I	See⁽²⁾
Common Stock	08/18/2003		S		3,000	D	$29.59	0	I	See⁽²⁾
Common Stock	08/18/2003		P⁽³⁾		7,400	A	$29.36	2,000,627	I	See⁽²⁾

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	4. Transaction Code (Instr. 8)		5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)		6. Date Exercisable and Expiration Date (Month/Day/Year)		7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4)		8. Price of Derivative Security (Instr. 5)	9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)	10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	Code	V	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares	8. Price of Derivative Security (Instr. 5)		10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)

1. Name and Address of Reporting Person^*

TEPPER DAVID A

(Last)

(First)

(Middle)

C/O APPALOOSA MANAGEMENT LP

26 MAIN ST FIRST FLOOR

(Street)

CHATHAM

07928

(City)

(State)

(Zip)

Relationship of Reporting Person(s) to Issuer

Director	X	10% Owner
Officer (give title below)		Other (specify below)

1. Name and Address of Reporting Person^*

APPALOOSA MANAGEMENT LP

(Last)

(First)

(Middle)

26 MAIN ST

1ST FLOOR

(Street)

CHATHAM

07928

(City)

(State)

(Zip)

Relationship of Reporting Person(s) to Issuer

Director	X	10% Owner
Officer (give title below)		Other (specify below)

Explanation of Responses:

1. David A. Tepper ("Mr. Tepper") is the sole stockholder of Appaloosa Partners Inc. ("API"). API is the general partner of, and Mr. Tepper owns a majority of the limited partnership interests in, Appaloosa Management L.P. ("AMLP"). AMLP is the general partner of Appaloosa Investment Limited Partnership I ("AILP") and acts as investment adviser to Palomino Fund Ltd. ("Palomino" and together with Mr. Tepper, API, AMLP and AILP, collectively, the "Reporting Persons"). Therefore, Mr. Tepper is filing this Report on Form 4 jointly with API, AMLP, AILP and Palomino. The Reporting Persons' business address is c/o Appaloosa Management L.P., 26 Main Street, Chatham, New Jersey, 07928. Mr. Tepper may be deemed to have beneficial ownership of more than 10% of the outstanding common stock of Kindred Healthcare, Inc. (the "Company").

2. See Exhibit A for text of (2).

3. The Reporting Persons will remit $3,366 to the Company, representing the profit from the transactions.

	APPALOOSA MANAGEMENT L.P.	08/18/2003
	/s/ David A. Tepper, on behalf of its general partner	08/18/2003
	DAVID A. TEPPER	08/18/2003
	/s/ David A. Tepper	08/18/2003
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
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