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By JAY HANCOCK | April 13, 2003
HEALTHSOUTH Corp., launched on its bell-shaped trajectory with Baltimore money in 1984, is a fraud of a different form, if we can believe U.S. regulators. WorldCom was the Mark Rothko of financial artifice, creating billions in fake profits with what prosecutors say were broad, bold strokes. Enron was Jackson Pollock, deriving illusory riches from an arrogant, colorful riot of lies. HealthSouth seems to have been Georges Seurat. HealthSouth ledgers were rendered in tiny, carefully aimed daubs that produced a stunning effect when one stepped back from the canvas: at least $1.4 billion in phony earnings, according to the Securities and Exchange Commission.
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BUSINESS
By Andrew Leckey and Andrew Leckey,Tribune Media Services | September 16, 2007
Many families have learned the hard way that the best method for coping with problems in the health care system is to avoid getting sick. Yet the economic power of the baby boom generation and government-sponsored plans provides the industry with significant investment potential. Opportunities are so great that Wall Street is sometimes willing to overlook conduct if companies are positioned to enjoy financial gain, and their stock price is right. Consider UnitedHealth Group Inc. and HealthSouth Corp.
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BUSINESS
By M. William Salganik and M. William Salganik,SUN STAFF | March 27, 1999
HealthSouth Corp., the Birmingham, Ala., company that operates more than 1,800 outpatient rehabilitation and surgery centers nationally, will manage the rehabilitation programs at Sinai Hospital and Levindale Hebrew Geriatric Center, Sinai and Levindale announced yesterday.Sinai's president, Neil Meltzer, said the deal was "not an outsourcing, but more of a partnership."He said managed care insurers like to contract for rehabilitation with large operators such as HealthSouth, so the new arrangement should bring Sinai more patients.
BUSINESS
By Bloomberg News | June 29, 2007
MONTGOMERY, Ala. -- HealthSouth Corp. founder Richard M. Scrushy was sentenced to six years and 10 months in prison for bribing former Alabama Gov. Donald Siegelman in a scheme to steer business to the company. U.S. District Judge Mark Fuller handed down the sentence yesterday, a year after a jury convicted Scrushy, 54, and Siegelman, 61. Fuller sentenced Siegelman to seven years and four months. The judge denied their requests for bail while they appeal their sentences. At the end of yesterday's hearing, both men were taken into custody.
BUSINESS
By NEW YORK TIMES NEWS SERVICE | July 11, 2003
As part of its investigation of the HealthSouth Corp., a congressional committee released a second e-mail message yesterday by the Wall Street analyst who criticized the company just months after giving its stock the highest possible rating. The analyst, Howard G. Capek, resigned under pressure last week when UBS executives discovered the first e-mail message. In the e-mail message released yesterday, written in August 1999, Capek responded to a query asking him why Health-South's stock was "acting like such a pig again."
BUSINESS
By BLOOMBERG NEWS | September 30, 2004
BIRMINGHAM, Ala. - Federal prosecutors added perjury and obstruction of justice charges to the criminal case against fired HealthSouth Corp. Chief Executive Officer Richard M. Scrushy yesterday in a new indictment in the rehabilitation giant's accounting scandal. The new charges, part of a superseding indictment, were announced by the Justice Department as it consolidated conspiracy and fraud charges and trimmed the number of counts from 85 to 58. Scrushy, 52, told U.S. Magistrate Judge T. Michael Putnam during a brief arraignment yesterday that he was "absolutely not guilty."
BUSINESS
By Thomas S. Mulligan and Thomas S. Mulligan,LOS ANGELES TIMES | June 30, 2005
It seems that Richard M. Scrushy would rather fight than quit. Scrushy, who was acquitted on all charges related to the $2.7 billion accounting fraud at HealthSouth Corp., contends he was illegally fired as the company's chief executive and has hired a lawyer to pursue a possible case against its directors. "He had an employment contract with the company, and he would assert that he was illegally fired from his job under the terms of that contract," Scrushy's spokesman, Charles Russell, said yesterday.
BUSINESS
By COX NEWS SERVICE | May 26, 2005
ATLANTA - Richard M. Scrushy may live to regret one of his last autographs as the head of HealthSouth Corp. Jurors in Birmingham, Ala., are deliberating the fate of Scrushy, 52, who essentially faces life behind bars and $278 million in forfeited assets if he's convicted of overseeing a $2.7 billion accounting fraud at his health care company. Scrushy, who made a fortune at his Birmingham startup by turning physical therapy into a national network of clinics in the 1980s, now is the first chief executive to be tried under the Sarbanes-Oxley Act. Prosecutors in the case are under pressure to get a conviction, as corporate watchdogs all over the country are waiting to see if the new law has any teeth.
NEWS
April 14, 2003
ON THE FACE of it, HealthSouth Corp. was a huge success, 1,700 medical facilities assembled by its flamboyant chairman, a former respiratory therapist, into the nation's largest chain of outpatient surgery, diagnostic and rehabilitative services. With headquarters in Birmingham, Ala., the Fortune 500 firm had become a brand name in sports medicine and the linchpin of the Southern city's aspirations for a high-tech future - building there, for example, the world's first all-digital hospital.
BUSINESS
January 3, 1998
Owings Mills-based Integrated Health Services Inc. yesterday completed its purchase of long-term care centers from Healthsouth Corp. for $1.25 billion in cash and debt, making it the largest post-hospital company in the United States.The centers, which offer more medical services than a traditional nursing home, originally belonged to Horizon/CMS Healthcare Corp., which was recently bought by Healthsouth.The deal, which was announced Nov. 3, includes 139 long-term care facilities, 12 specialty hospitals, 35 institutional pharmacies and more than 1,000 rehabilitation therapy contracts.
BUSINESS
July 14, 2005
In the Region No. 1 proxy adviser to buy rival in D.C. for over $10 million Institutional Shareholder Services, the Rockville firm that advises investors on how to vote on proxy issues, is acquiring a respected Washington research firm that is often viewed as a rival in the business. ISS, the nation's largest proxy advisory firm, will pay more than $10 million to acquire the Investor Responsibility Research Center, which has been struggling to compete since becoming a for-profit entity four years ago. The deal, expected to close within days, is a surprise, given the longstanding competitive tension between the two proxy firms.
BUSINESS
By BLOOMBERG NEWS | July 13, 2005
WILMINGTON, Del. - A Delaware judge told HealthSouth Corp. investors yesterday that the company will collect on a judgment he entered against founder Richard M. Scrushy, who was acquitted of fraud charges last month but still owes his former firm an estimated $17 million. Chancery Court Judge Leo E. Strine Jr. ordered Scrushy, the company's former chief executive, in November 2003 to reimburse HealthSouth for a $25.2 million loan he repaid in company shares that later dropped in value.
BUSINESS
By BLOOMBERG NEWS | July 9, 2005
Vestavia Hills and Mountain Brook are places where summer is a verb, Versace dinner plates are on wedding registries and the median family income is almost triple the U.S. average. Richard Scrushy certainly has the trappings of wealth to blend into those tony Birmingham, Ala., suburbs: He's worth more than $300 million, according to his lawyers and court documents. And then there are the mansions, yachts, racing boats and a Rolls Royce. But Scrushy's neighbors in Vestavia Hills, where he lives, and in Mountain Brook, where his family shops, have long considered him an outsider, and the reception is no less chilly since the HealthSouth Corp.
NEWS
July 1, 2005
THE FEDERAL government's fraud and money-laundering case against Richard M. Scrushy, founder and former CEO of the HealthSouth Corp., appeared solid, if not airtight. His trial was preceded by guilty pleas from 15 other former executives of the nation's largest chain of rehabilitation hospitals and clinics in connection with $2.7 billion worth of accounting fraud. Five of the firm's former finance officers testified against Mr. Scrushy, saying he told them to cook HealthSouth's books to meet Wall Street's expectations.
BUSINESS
By Thomas S. Mulligan and Thomas S. Mulligan,LOS ANGELES TIMES | June 30, 2005
It seems that Richard M. Scrushy would rather fight than quit. Scrushy, who was acquitted on all charges related to the $2.7 billion accounting fraud at HealthSouth Corp., contends he was illegally fired as the company's chief executive and has hired a lawyer to pursue a possible case against its directors. "He had an employment contract with the company, and he would assert that he was illegally fired from his job under the terms of that contract," Scrushy's spokesman, Charles Russell, said yesterday.
NEWS
By Jamie Smith Hopkins and Jamie Smith Hopkins,SUN STAFF | June 7, 2005
Getting Americans outraged over corporate skulduggery? Easy. Winning high-profile convictions? Much harder. Eleven days of deliberation haven't been enough for jurors to decide whether the former chief executive of HealthSouth Corp. is guilty of fraud; they left yesterday without a decision. The Tyco International Ltd. case - with its revelations of lavish personal spending on the company dime - is back in deliberation again after a mistrial. Last week the Supreme Court overturned the conviction of accounting firm Arthur Andersen of Enron infamy, and now former Credit Suisse First Boston banker Frank Quattrone is appealing his obstruction of justice conviction.
BUSINESS
By BLOOMBERG NEWS | April 4, 2003
BIRMINGHAM, Ala. - Five HealthSouth Corp. officers pleaded guilty yesterday to conspiring to inflate company earnings by as much as $2.5 billion, an alleged fraud almost twice the size previously estimated by U.S. authorities. Also yesterday, the Securities and Exchange Commission, which had accused fired chief executive Richard Scrushy and HealthSouth of inflating earnings by at least $1.4 billion, charged Scrushy with insider trading. The agency said it would seek up to $743 million in penalties, disgorgement of illegal profits and triple damages if it proved the new charges.
BUSINESS
By BLOOMBERG BUSINESS NEWS | May 15, 1996
BIRMINGHAM, Ala. -- MedPartners/Mullikin Inc. Chairman Larry House built his company into the nation's largest manager of physician groups by following two simple rules: Focus on primary care, given by the first doctor a patient sees, and remember who's paying the bills.House stuck to his plan yesterday as the Birmingham-based company purchased Caremark International Inc. for $2.5 billion to become a nationwide powerhouse with 7,250 physicians and almost 1.5 million patients.The company, renamed MedPartners Inc., is well equipped to deliver the efficient medical care being demanded by the bill payers -- insurers, employers and the government, analysts said.
BUSINESS
By COX NEWS SERVICE | May 26, 2005
ATLANTA - Richard M. Scrushy may live to regret one of his last autographs as the head of HealthSouth Corp. Jurors in Birmingham, Ala., are deliberating the fate of Scrushy, 52, who essentially faces life behind bars and $278 million in forfeited assets if he's convicted of overseeing a $2.7 billion accounting fraud at his health care company. Scrushy, who made a fortune at his Birmingham startup by turning physical therapy into a national network of clinics in the 1980s, now is the first chief executive to be tried under the Sarbanes-Oxley Act. Prosecutors in the case are under pressure to get a conviction, as corporate watchdogs all over the country are waiting to see if the new law has any teeth.
BUSINESS
By BLOOMBERG NEWS | January 26, 2005
BIRMINGHAM, Ala. - HealthSouth Corp. founder and fired chief executive Richard M. Scrushy was a "cunning" and "hands-on leader" who directed a $2.7 billion accounting fraud and enriched himself as he fooled investors, a prosecutor told jurors yesterday at the start of Scrushy's fraud trial. "You're going to hear evidence that Richard Scrushy knew about the conspiracy, that he participated in the conspiracy and that he profited from the conspiracy," U.S. Attorney Alice H. Martin told jurors in her opening statement.
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