HealthSouth Corp., Birmingham, Ala., named the president of HCA's Eastern Group hospital unit, Jay Grinney, as its CEO, effective May 10. The HealthSouth board unanimously elected Grinney, 53, to succeed Robert May, who has been interim CEO since the ouster of Richard Scrushy in March 2003. May will remain a board member. Grinney takes over as HealthSouth struggles to recover from a $2.7 billion accounting fraud scandal that so far has resulted in an 85-count indictment against company founder Scrushy and guilty pleas by 15 HealthSouth executives. The case against Scrushy is pending. HCA carried out its own corporate overhaul in the late 1990s amid a federal investigation into its Medicare billing practices. The company ultimately paid the U.S. government $1.7 billion to settle civil and criminal claims against it. Grinney joined HCA in 1990 and has been president of its 91-hospital, 10-state Eastern Group since 1996. He is a former chairman of the Federation of American Hospitals. -- by Julie Piotrowski
HealthSouth's new CEO knows corporate overhauls
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