HealthSouth Corp. Chief Executive Officer Jay Grinney told investors that the company plans to sell or close 41 facilities in the fourth quarter and expects to settle charges resulting from a federal investigation of accounting fraud by year-end. Grinney said he believes the company can recover from the multibillion-dollar scandal in three to four years. HealthSouth, Birmingham, Ala., has not filed complete financial reports for the third quarter ended Sept. 30 because of a restatement of its books. Grinney told investors the company was performing about as expected, earning $148.6 million in the third quarter, compared with budgeted gains of $154 million, and earning $483.9 million in the nine months, compared with budgeted gains of $492.7 million. HealthSouth lost $6 million in the third quarter to hurricanes that swept the Southeast and $1.3 million in the quarter to the 75% rule for rehabilitation, Grinney said. The rule changed how hospitals qualify for rehabilitation payments. -- by Joseph Mantone
HealthSouth to slim down, settle with government
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