HealthSouth

To help understand what happened in the HealthSouth Scandal we’ll need to understand a few things. First we need to know some of the key people involved. The person who allegedly spearheaded the scandal was Richard Scrushy. Scrushy was the CEO of the company starting in 1994 until he was removed from office in 2003, and was also one of the cofounders of HealthSouth. He is thought to have been the one to convince the rest involved to commit the fraud. Next we’ll need to know is who the “Big 5” were

HealthSouth Corporation was founded in 1984 by Richard M Scrushy, it is one of the United States largest providers of post-acute healthcare services. Post-acute care refers to a range of medical care services that support a patient with their continued recovery from illness or management of a chronic illness. Most commonly, physical rehabilitation. Initially HealthSouth was just in the business of rehabilitation, however as the company grew it moved into the fields of outpatient surgery, occupational

INTRODUCTION The HealthSouth Corporation was started in 1984 by Richard Scrushy with hopes of becoming one of the largest healthcare companies in the country. It was doing quite well by 1996 with a market value of nearly $12 billion and was one of the United States largest healthcare firms. This all fell apart in 2003 when it was discovered that Scrushy and his employees had committed fraud in the estimated range of almost $2.7 billion (Daigle, Louwers and Morris 887). Scrushy, over the years

The Accounting Scandal of HealthSouth 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

Introduction 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. HealthSouth grew rapidly during

whatsoever. Moreover, the amount of the accounts written off in any given year did not correlate with the allowance established for them. To the extent that these disclosures were reliable, these data indicate that HealthSouth used bad-debt reserves to manipulate earnings. This lack of correlation could be an indirect indicator of the fourth warning sign of abusive earnings management: reserves that are not correlated with balance sheet items. Consider two related items related to uncollectible accounts

Century. By Ambe Diom Afumbom Executive Summary The SNIFFING book-cooking schemes of major corporations and firms such as HealthSouth Corp, Enron global etc, plaguing our financial world in this era, is an indication that we require “all hands on deck” in the fight against financial crimes. The variability and self-motivated nature of frauds, characterized by material destructive

INTRODUCTION HEALTHSOUTH Corporation (HEALTHSOUTH) began its rise in 1984 when Richard Scrushy, Aaron Beam, and other close associates formed the HEALTHSOUTH Empire with venture capital from New Enterprise Associates of Baltimore. In the beginning, Richard Scrushy was the chief executive officer (CFO), Aaron Beam was named the chief financial officer (CFO) and William Owen, an accountant from Ernst and Young, assumed the position of comptroller. HEALTHSOUTH went public in 1986 and began rapidly

the CEO and the founder of HealthSouth Corporation, was one of the most successful and respected business men in the state of Alabama. This is a story of a fallen American dream. HealthSouth Corporation is the United States’ largest inpatient rehabilitative hospital. HealthSouth provides the services of rehabilitative care to patients recovering from all kinds of conditions. It started in 1984, the company was originally named Amcare Inc. By the end of 1990, HealthSouth expanded to 50 facilities

HealthSouth: The Wagon to Disaster is an eye-opening and compelling insight into what went on behind the colossal travesty HealthSouth Corporation became. The account is written by Aaron The beam, a founding member of HealthSouth who witnessed the rise and fall of Wall Street’s darling. The novel details the beginnings of both Richard Scrushy and Aaron Beam, the conception of HealthSouth, and the slow, slippery cliff of fraud that would lead to the downfall of a billion-dollar enterprise and tragedy