As HealthSouth Corp.'s annual revenues hit $3 billion for the first time, its top executive, Richard Scrushy, said he will begin to integrate HealthSouth operations in certain markets with the physician practice management firm he also runs.
Scrushy, chairman and chief executive officer of HealthSouth and interim CEO at MedPartners, told Wall Street analysts last week that the two Birmingham, Ala., companies are beginning to integrate their operations in Chicago, Houston, Florida, North Carolina, South Carolina and Southern California. "It's something that should have been done a long time ago," he said.
Scrushy said staff from both companies in those markets met Feb. 17 and appointed leaders for the integration, which will include joint contracting. He didn't elaborate on the collaboration.
Meanwhile, Scrushy said MedPartners is aggressively searching for a CEO to replace Larry House, who resigned in January. He said he hopes to have an announcement in 90 days or less. Previously, Scrushy said the search could take six months or longer.
HealthSouth, a rehabilitation and outpatient surgery provider, reported that its net income tripled to $98.8 million, or 25 cents per share, in the fourth quarter ended Dec. 31, 1997. That compares with $24.7 million, or 8 cents per share in the year-ago quarter. Revenues grew 26% to $854.3 million.
The increase in net income is a result of more than $44 million in losses from merger and related costs recorded in the fourth quarter of 1996.
For the year, net income grew 74% to $330.6 million, or 99 cents per share, from $189.9 million, or 80 cents per share, in 1996. Revenues rose 17% to $3 billion.
Scrushy continues to tout his "integrated service plaza" concept (Feb. 23, p. 102). He disclosed, for the first time, that five plazas now are open with another five expected to open soon.
The plazas will house all HealthSouth's product lines under one roof in a medical office building of about 60,000 square feet. The plaza will combine outpatient rehabilitation and surgery, occupational medicine and therapy programs, and diagnostic imaging.
HealthSouth has opened five plazas in Houston; Los Angeles; Orlando, Fla.; Rockville, Md.; and San Diego. Another five will open in the next three months in Boise, Idaho; San Antonio; Scottsdale, Ariz.; St. Louis; and Ventura, Calif.