The Accounting Scandal of Healthsouth - Essay
HealthSouth Corporation is based in Birmingham, Alabama, it is the largest provider of rehabilitative health care services. It operates in 26 states in the United States of America and in Puerto Rico. HealthSouth provides rehabilitation hospitals, long term heightened care hospitals, outpatient rehabilitation satellite clinics and home health agencies.
HealthSouth was found by Richard Scrushy in the year 1984 and was called Amcare, Inc. It opened its first facility in Arkansas and later on that year another one in Birmingham. In 1985 the company changed its name into HealthSouth Rehabilitation Corporation, in 1990 the company expanded to 50 facilities around the US. …show more content…
Ever since the accounting scandal was revealed and found, HealthSouth have taken many steps to turn the company around to the better and into becoming a stronger company. It got a new senior management team and the directors working in the company when the fraud occurred have been fired. HealthSouth was able to avoid bankruptcy by selling assets and by renewing contracts. Hundreds of experts were brought to help in reconstructing the company’s record, improve the accounting policies and more.
HealthSouth even got approved by the NYSE in October of the year 2006, as part of corporate restricting plan; the company also sold its diagnostics division, surgery division and outpatients divisions on 2007. With this new structure for HealthSouth firmly in