HealthSouth Corp. said it believes it has "ample funds" to support operations, including paying employees, vendors and suppliers. The Birmingham, Ala.-based company also said it has cut 250 corporate-level positions. A report in today's New York Times said a summer bankruptcy was likely for the rehabilitation chain (See Other News). The troubled company has been accused of overstating earnings by $2.5 billion since 1997. In a letter to physicians at HealthSouth surgery centers, surgery division president and COO Larry Taylor said the company is attempting to sell its fleet of aircraft and other vehicles and hopes to reduce costs and conserve cash without disrupting patient care. By focusing on patient-care costs, HealthSouth has been able to "build cash and reduce the amount of time it takes for our critical vendors to receive payments," Taylor said. As a result, vendor complaints are declining and the company is under less pressure to accelerate payments, he said. PricewaterhouseCoopers is auditing HealthSouth financial statements, and Taylor said HealthSouth will decide today on an accounting firm for ongoing audits. Ernst & Young was relieved of its auditing relationship with HealthSouth earlier this month. Taylor asked physicians to postpone selecting auditors for local facilities until HealthSouth has named a corporate auditor in order to avoid potential conflicts of interest. -- by Julie Piotrowski
HealthSouth says it has 'ample' funds for operations
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