Two top executives resigned from HealthSouth Corp., Birmingham, Ala. -- Larry Taylor, 46, president of the company's surgery division, and Patrick Foster, 58, president of inpatient services. HealthSouth said the men were not dismissed but were leaving to pursue other opportunities. The surgery and inpatient divisions are HealthSouth's largest and are projected to generate almost all of the company's pre-restructuring profit. In a news release, HealthSouth Chief Executive Officer Jay Grinney said he was happy with both divisions' performance. The company's 2004 budget projects inpatient division earnings at $511 million and surgery division earnings at $155 million. The remaining divisions, outpatient and diagnostic, are projected to earn $68 million and $38 million, respectively. All projections are before restructuring charges. HealthSouth's overall profit target before restructuring charges but after overhead and other costs is $650 million.
The departures follow several leadership changes at HealthSouth as it tries to recover from a multibillion-dollar accounting scandal. Grinney, a former HCA executive, was named CEO in May and another former HCA executive, Mike Snow, became chief operating officer in June. HealthSouth plans to name a new chief financial officer in the third quarter to replace turnaround specialist Guy Sansone. -- by Joe Mantone