Healthsouth : The Wagon At Disaster

changes in the nature of running a healthcare business. Lastly, they were able to realize the

1. What are several red flags that E&Y either was or should have been aware of in the audit of HealthSouth?

Richard M. Scrushy is one the founder of HealthSouth in 1984. And he also is the CEO of HealthSouth. At the beginning with his friend in Amcare Company, he use a million dollars investment by Citicorp Venture Capital to founded HealthSouth. Two years later, Richard made HealthSouth become a listed company. In 1987 HealthSouth has expanded to two new areas, which is worker’s compensation and sports medicine. Thus it makes HealthSouth earned a hundred million dollars. By 1988, HealthSouth has operated a network of 21 outpatient facilities, 11 inpatient facilities, and seven rehabilitation equipment centers in 15 states, it has became the leader of rehabilitation industry in the U.S(James Press, 2000).

The Uvex Corporation was a small family-owned medical center on the southwest coast and as the business becomes flourished, the company restructured the organization for better service for its patients. Since after reorganization, Alex Fuhrman was worked as head the administration of the cancer research and treatment division. Christopher Hibbs, previously worked as a bookkeeper for the city of Sacramento, and currently hired to be an accounting manager for the West Coast division. Frederick Fontaine, the Manager of West Coast, has found a memo on Hibbs’ desk about doubt Alex was the person who cause fund missing since Alex was the director of accounting and finance. The unavailable communication between Alex

HealthSouth is one of the nation’s largest healthcare providers specializing in rehabilitation. HealthSouth was founded by Richard M. Scrushy in 1984 and went public in 1986. Scrushy served as its Chairman of the Board from 1994 to 2002. The company was incorporated in January 1984 as Amcare Inc. before its name was changed to HealthSouth Rehabilitation Corporation in May 1985. In January of 2003, Mr. Scrushy reassumed the position of CEO.

The Better Health Association is a nonprofit company whose objective is simply to increase the health of people through health education, guidance, and diagnosis screening programs. They make an attempt to assist audiences of any age and socioeconomic ranges to gain knowledge of living an even healthy life-style and creating the know-how required to develop healthy and balanced choices. "My role within the company is to secure agreements from at least three major area advertising and marketing agencies to underwrite the creation and production of all Better Health special event programs for the next three to four years. I also, create an active and positive presence for the agency in state-of-the-art social media venues that results in recruitment and assistance to new clients. Monitor and track results quarterly. In addition to, developing systematic marketing plans that address every operational area of Better Health including client services, all fund raising events and general association promotion in all media venues" (https://bluequill.franklin.edu, n.d.).

Ronal G. Spaeth currently serves as the Chief Administrative Officer for System Development of Evanston Northwestern Healthcare (ENH) and serves as its President of the ENH Foundation for North Shore University Health System, as well as an Advisor of SA Ignite, Inc. (Bloomberg, 2016). Previously, he served as the Chief Executive Officer and President of both Cole Taylor Bank and Highland Park Hospital before Highland Park Hospital merged with Evanston Northwestern Healthcare. For almost a decade, Mr. Spaeth had served in various positions at Evanston Hospital, such as vice president of administrative services, vice president of corporate services, assistant secretary of the board of directors, senior executive vice president, to include the chief administrative officer he currently serves as (Grazier, 2005). In addition, Mr. Spaeth served as the Chairman of the Board of Trustees of the Illinois Hospital Association, Board of Governors of the American College of Healthcare Executives (ACHE), a Member of the Board of Commissioners of the Joint Commission on the Accreditation of Healthcare Organizations (JCAHO), and Member of the Board of Trustees of the American Hospital Association (Bloomberg, 2016).

This Harvard Business Review case is about the company Vitality Health Enterprise. The new CEO, Beth Williams brought in new ideas to revitalize the company and launch it into a new era of growth. The company switched over to relative performance grading from an absolute one. The case give clear insights of the pros and cons of both the systems. The satisfaction for some employees were a reason of discontent for others.

On a snowy January evening, the Midwestern Medical Group (MMG) management team held a retirement party for Judith Olsen, MMG president. During the evening, Olsen reflected back on the years she had worked for MMG with mixed feelings about her experience. Over the course of their eight-year integration

In the healthcare field, there are forces that drive practice and develop change within an organization. There are both internal and external forces in which not one organization is immune to (Kotter, 1996). By establishing a vision of the company, a sense of purpose and direction is created, working towards change within the forces (Huyer, 2014). When people participate in a vision, they work towards a common goal and identify what needs to be changed in order to reach that vision. In this paper, a presentation of Banner Health will be discussed, along with its mission and stakeholders, driving forces, viability, as well as an analysis of forces, a response to change, a vision for change, and an evaluation of change.

As president and chief executive officer (CEO) of Sharp HealthCare, Michael W. Murphy is tasked with a large responsibility. He oversees more than 16,000 employees, 2,600 affiliated physicians and about 2,100 volunteers. In turn, this workforce provides service and healthcare to a completely integrated not-for-profit system that includes "four acute-care hospitals, three specialty hospitals, two affiliated medical groups, five urgent care centers, three skilled nursing facilities, home health, hospice, state-of-the-art outpatient facilities and a health plan" (sharp.com, 2015, internet). Murphy 's healthcare career has spanned more than 30 years. He was appointed to his most recent position in June 1996 (sddt.com, 2015, internet). Murphy 's bona fides are numerous. His executive experience includes serving as Chief Financial Officer of Grossmont Hospital, beginning in 1991. He is a certified public accountant as well. In addition, since September 2002, he has served as the Executive Director of Jack in the Box (bloomberg.com, 2015, internet).

HealthSouth Corporation was one of the largest publicly traded owners of rehabilitative hospitals within the Untied States and paved the way for its industry. However, prior to 2003 the company had a very dark secret: fraud. In 2003 HealthSouth was accused of making $2.7 billion in false journal entries in the company’s system (Helios, 2013). These false entries allowed the corporation to inflate its earnings and revenue. While the corporation was dabbling in a fraudulent, aggressive account system, auditors were unable to detect the extent of the fraud occurring. If not for Michael Vines and Weston Smith, HealthSouth Corporation might have continued its false entries and continued deceiving shareholders and even Wall Street itself. HealthSouth serves as a historical example of how corporate culture can use fraud and deception schemes to not only rationalize what it is doing, which is an element of the fraud triangle, but also encourage fraudulent financial statements.

Smithson Healthcare System (SHS) is a not-for-profit health system which serves the greater community of Newland County and other rural satellite counties within the state. In 2013, SHS unfolded a new heart clinic located at their Smithson East hospital as a tactical response to some disturbing outcome data and the evolving healthcare environment. The clinic’s purpose was to improve outcomes for patients with a primary diagnosis of heart failure and respond to reimbursement changes associated with the Affordable Care Act (ACA). After three years of aggregating data on the operating performance of the heart clinic, an evaluation of the impact and success of the clinic is required. This analysis will offer conclusions and suggestions that will influence the future of the heart clinic’s vitality for consideration to Smithson East’s Chief Operating Officer (Chelsea Rigland) and its senior staff.

Blue Cross and Blue Shield of Illinois (BCBS) is considered the largest and most experienced insurance company in Illinois. BCBS was founded in order to provide healthcare to teachers at a reasonable cost. It services over 7 million people. Its mission is “To promote the health and wellness of members and communities through accessible, cost-effective, quality health care” (Blue Cross Blue Shield, 2012). Blue Cross Blue Shield provides its customers with affordable health care. The parent company is Blue Cross Blue Shield Association its signature tag is “Creating Healthier Communities,” BCBS does not have any investors and the customers are considered the investors of the company and essentially who BCBS answers to. This is an important factor because they do not have to keep investors interest in the forefront of decision making, but rather they have the interest of their client in mind. (Blue Cross Blue Shield, 2012) In 2013 the Chicago based company reported profits of 684.3 million dollars. The company employees over 17,000 people. “Blue Shield of Illinois fell well below the $1 billion mark for the first time since 2009, in part because the insurance giant is setting aside money to offset expected losses from the troubled rollout of Obamacare” (Wang, 2014). Despite this setback it continues to expand over various parts of the United States. BCBS

Throughout the movie, the authors identified troubling faults and failures of the current system. These included the lack of appropriate coverage, the undressing push for finance over health care quality, unsustainable costs, unethical business transactions and risks, the failure of healthcare in the United States to address the underlying issue of disease processes and the commonality of treating symptoms verse the cause.