Encompass Health

HealthSouth Corporation, now Encompass Health Corporation, is a major provider of post-acute healthcare services in the United States. Founded in Birmingham, Alabama, in 1984 by Richard M. Scrushy, the company initially focused on rehabilitation facilities before expanding into other healthcare sectors.

 

During the 1990s, HealthSouth experienced significant growth through mergers and acquisitions, diversifying its services and changing its name to HealthSouth Corporation to reflect its expanded scope. However, in 2002, the company became embroiled in a massive accounting scandal. CEO Richard Scrushy was accused of directing employees to falsify earnings reports, inflating profits by $1.4 billion over seven years. During the 1990s, HealthSouth experienced significant growth through mergers and acquisitions, diversifying its services and changing its name to HealthSouth Corporation to reflect its expanded scope. However, in 2002, the company became embroiled in a massive accounting scandal. CEO Richard Scrushy was accused of directing employees to falsify earnings reports, inflating profits by $1.4 billion over seven years.

 

The scandal led to Scrushy's termination and a period of financial turmoil for HealthSouth. Restructuring efforts ensued, including asset sales and changes in leadership. By 2006, the company had successfully restructured and relisted its stock on the New York Stock Exchange.

 

In subsequent years, HealthSouth underwent further restructuring, selling off divisions like outpatient centers and diagnostics to focus on core services. In 2014, it made a strategic move by acquiring Encompass Home Health and Hospice, expanding its post-acute care offerings.

 

Despite the challenges posed by the scandal, HealthSouth managed to rebuild trust with investors and stakeholders. Its commitment to delivering quality care and financial transparency has solidified its position as a leading provider of post-acute healthcare services in the United States.