HealthSouth Corp. expects to surpass its year-end profitability guidance after increasing its ownership of a hospital in Massachusetts.
HealthSouth, the largest operator of inpatient rehabilitation hospitals in the country, increased its ownership of Fairlawn Rehabilitation Hospital in Worcester, Mass., to 80% from 50%. Fairlawn is a joint venture between HealthSouth and UMass Memorial Health Care.
The transaction will allow HealthSouth to add Fairlawn as a consolidated entity on its books, effective June 1, and could add $25 million to $30 million in profits to its second-quarter earnings this year. HealthSouth did not comment further on the deal and referred to a statement from Chief Operating Officer Mark Tarr, who said the increased ownership in Fairlawn “provides another opportunity for HealthSouth to grow by investing in its core business.”