Healthsouth Scheme

Joe Tadessa

HealthSouth Scheme

Acct 422

Professor: John Blake

Due Date: /11/2013

HealthSouth Corporation in one of the largest rehabilitative hospital and a fortune 500 company that’s based in Birmingham, Alabama. The main responsibility in HealthSouth Corporation is to provide excellent care to patients who are in the process of recovering from stroke, cardiac, orthopedic, other neurological disorder, brain injury and many other problems patients might have. HealthSouth operated in 28 states across the country and out of the country primary in Puerto Rico. Richard Marin Scrushy is the Founder of HealthSouth till he was found guilty in corporate accounting scandal. Throughout this paper, you’ll understand the reason behind the scandal, the ethical issues, stakeholders and the part everyone had in the company.

Richard Scrushy was the father of HealthSouth Corporation. As a kid, Richard Scrushy was a college dropout but made a life for himself by any means necessary. By the time Scrushy was 30, he was promoted to a vice-president position in Lifemark Corporation which was a health care management corporation firm. By working at the healthcare management care, Scrushy witnessed major changes in the health care industry. Scrushy witnessed health care cutting down expenditures while the costs were rising sky high. After that, he came up with the idea of helping people by coming up with high quality healthcare for a low cost that will be affordable. Richard Scrushy used his skills to talk to and do whatever he needed to do make his vision come alive. That’s when HealthSouth was generated by being one of the largest Rehabilitation Corporation.

In the 1990, there was a lot of acquisitions about Richard Scrushy on how he was handling his business. On March 2003, The Securities and Exchange Commission (SEC) charged HealthSouth Corporation with falsifying at least $1.4 billion in their profit and overstating their earning just to satisfy the Wall Street since...