tci Medicare Compliance & Reimbursement - 2003 Issue 17

HealthSouth Watch: REHAB GIANT FACES CONGRESSIONAL PROBE

Imploding rehab giant HealthSouth Corp.'s woes deepened April 22, with a Congressional panel joining the Department of Justice and the Securities and Exchange Commission in investigating the company for dubious accounting practices and possible Medicare and Medicaid fraud. House Energy and Commerce Committee leaders demanded a host of documents from Birmingham, AL-based HealthSouth and its auditor, Ernst & Young. Citing SEC allegations that the company fraudulently overstated its earnings by some $2.5 billion since 1997, the letter suggests HealthSouth has joined the hall of shame already peopled by Enron Corp., Global Crossing, Qwest and Worldcom. Penned by...

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