Health South: the Scrushy Way

Running head: The Scrushy Way 1

Health South: The Scrushy Way

Jevon C. Smith

Northcentral University

The Scrushy Way 2

Table of Contents

Introduction………………………………………………………………………4

Impacts on stake holders………………………………………………………….5

Outcome and fairness of the punishment…………………………………………6

Conclusion………………………………………………………………………..9

References………………………………………………………………………..10

The Scrushy Way 3

Abstract

2003 was the year that it all came tumbling down on the healthcare juggernaut HealthSouth. They were being investigated for some many charges from accounting fraud, bank fraud, insider trading, securities fraud, mail fraud and money laundering. Former CEO Richard Scrushy was the man that was leading the team in unethical practices and he was the man to go down as well. In this paper I will tell you how the whole HealthSouth hospital started and was brought down by greed. HealthSouth helped many athletes and celebrities with their health, surgeries and rehabilitation. Scrushy fed off of that and that was his whole marketing scheme that he would come up with to get more dollars to come and be treated. He knew that if he had celebrities vouching for him that would be the best marketing tool he would need to become successful. But millions wasn’t enough for him. He wanted billions and the yachts that came along with it. Greed has almost sunk the ship of HealthSouth while many of their former CFOs were indicted and sentenced to years in federal prison.

Keywords:

Fraud, Greed, Insider Trading

The Scrushy Way...