HealthSouth Corp., Birmingham, Ala., has hired two search firms -- the Directorship Search Group, New York, and Spencer Stuart, Philadelphia -- to identify and recommend independent members for the company's board of directors before its annual shareholder meeting next spring. The search was ordered by the company's newly formed corporate governance committee, which is charged with reviewing and improving HealthSouth's governance policies. HealthSouth shares fell 47% in value in August when the company surprised investors by announcing that a Medicare policy issue would reduce its profit by $175 million. Several pending shareholder lawsuits question the board's judgment in the matter. -- by Julie Piotrowski
HealthSouth seeking independent board members
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