GREENWOOD - A subsidiary of Louisville-based Kindred Healthcare has announced plans to lay off 86 hospital employees in Greenwood. In a notice to the state, Transitional Hospitals Corp. of Indiana Inc. says Kindred Hospital - Indianapolis South will close by the end of the year.

The company says the long-term acute care hospital is converting into an inpatient rehabilitation hospital as a result of a partnership with Community Health Network. The conversion will result in all positions being eliminated.

The layoffs are expected to take place over two weeks beginning November 7 and are expected to be permanent. Kindred did not state whether the employees would be offered positions in the new hospital.

Earlier this week, Ohio-based CommuniCare Health Services announced the acquisition of 16 skilled nursing centers in Indiana previously owned by Kindred Healthcare.