Kindred Healthcare's (NYSE:KND) New Payment System Shouldn't Hinder Company

When implementing a new payment system, it can be troublesome for a large number of medical companies, but those of the size of Kindred Healthcare (NYSE:KND) appear to be able to adjust without much impact, and that seems the case with them.

Jefferies said that, "while the transition to a new payment system is rarely seamless, larger, more sophisticated providers, such as KND, appear to be adjusting quite well."

Kindred has also said they have plans to enlarge their borrowing capacity in 2011, which should open up acquisition possibilities for them which are earnings accretive.

Jefferies reiterates their "Buy" rating on Kindred Healthcare (KND), which closed Thursday at $20.50, gaining $0.79, or 4.01 percent. Jefferies boosted their price target on Kindred from $21 to $25.