close

The Healthsouth Debacle

 The Healthsouth Debacle Essay

The HealthSouth Debacle:

A Legal and Honest Perspective

Jay Buntemeyer

Regis University

Abstract

HealthSouth Organization is the major operator of rehabilitation private hospitals in the United States. Considering that the company's invention in 1984, HealthSouth has garnered the interest of Stock market and an incredible number of investors. However , the attention was because the iconic HealthSouth was involved in one of the largest accounting fraud scandals in United states of america history. HealthSouth's founder and CEO, Richard M. Scrushy, was likewise the creator of the complete scheme that defrauded the government and private entrepreneur out of $2. five billion us dollars. The HealthSouth scandal gives a look at many different legal cases involving municipal and criminal charges, as well as administrative debts. HealthSouth as well provides ample opportunity to measure the ethical ramifications of the behavior. The HealthSouth debacle still leaves one with several unanswered questions. Just how did HealthSouth avoid diagnosis for so very long? Could this scandal have been completely detected previously? HealthSouth is a superb example of company turmoil coming from a legal and ethical perspective.

Keywords: Scrushy, HealthSouth scandal, fraud, legal litigation, city trials.

The HealthSouth Hecatombe: A Legal and Ethical Point of view

Company Review

HealthSouth Firm (HealthSouth) is one of the largest companies of inpatient rehabilitative medical care services in the United States (Reuters, 2009, para. 1). HealthSouth was incorporated in the state of Delaware in 1984 since Amcare, Incorporation. before changing its name to HealthSouth Company in 1985 (Reuters, 2009 & " Funding Universe, ” 2000). From that time, HealthSouth began expanding the business and having a health care icon. By 1988, HealthSouth was working a vast network of services: 21 outpatient facilities, 11 inpatient establishments and 7 rehabilitation centers. The HealthSouth network spanned across 15 states and was merely beginning to pass on its wings. In 1989, HealthSouth reported revenues of $114 mil, but that was only the start of accelerated growth (" Funding World, ” 2k, para. 11). Mostly through acquisitions, HealthSouth continued a pattern of growth that captivated one of the most experienced shareholders while increasing the eyebrows of the Investments and Exchange Commission (SEC). In the mid-1990s, HealthSouth obtained two large companies that only added to it is rapid expansion: ReLife Inc and NovaCare, Inc. The largest HealthSouth buy happened in 1995 when the company announced it was getting Diagnostic Health Corporation to get $1. one particular billion. HealthSouth continued increasing and diversifying its business by mergers and acquisitions of other health care services companies (" Funding Whole world, ” 2000, para. 14-15). HealthSouth obtained companies in specialty health care services and purchased surgical centers to further contribute to HealthSouth's status since the largest rehab provider near your vicinity (" Financing Universe, ” 2000, para. 16). At the conclusion of 2008, HealthSouth was operating 93 inpatient therapy hospitals, 6 long-term serious care clinics, and 49 outpatient treatment facilities. In aggregate, HealthSouth operates 6th, 543 qualified beds in 26 diverse states and Puerto Lujoso. The bulk of the facilities that HealthSouth functions are clustered in Texas, Pennsylvania, Fl, Tennessee, and Alabama, along with operations in Puerto Potentado, the United Kingdom and Australia (Reuters, 2009, pra. 2). However for HealthSouth, the age of progress and expansion came a crash down around allegations and charges of accounting scam and desordre of financial statements. In similar situations to other prominent corporate scams, HealthSouth's concerns point immediately at their leadership, more specifically their CEO, Richard M. Scrushy. Command

The leadership of HealthSouth was over several different organizations and says, yet one common element united...

 Why Go through Beowulf Article

Why Go through Beowulf Article

п»їWhy Read Beowulf? By Robert F. Yeager Beowulf, the rousing Older English poem of man and huge, has been a class room classic to get generations.…...

Read
 Oil and Gas sector Essay

Oil and Gas sector Essay

The global gas and oil industry likewise involves the exploration and production of commodity and energy trading, pipeline monitoring and alternative energy. Petroleum can be proved to be probably the…...

Read