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Monday, July 04, 2005

HealthSouth Box Score So Far

Richard Scrushy, former CEO of HealthSouth, was recently acquited. However, a recent Associated Press report reminds us that many top HealthSouth executives have plead guilty so far. Fifteen have plead guilty, including the company's first Chief Financial Officer (CFO), Aaron Beam, who plead guilty to bank fraud, Will Hicks, a former Vice President, Mike Martin, another former CFO, and Richard Botts, another former Vice President. Two other former HealthSouth executives, former President Jim Bennett, and former division controlled Hannibal "Sonny" Crumpler, are awaiting trial.
The company itself agreed to pay $100 million to settle civil fraud charges made by the Security and Exchange Commission (SEC), and to pay $325 million to settle charges made about it Medicare billing practices by the Department of Justice.
HealthSouth remains a prime example of a large health care organization run by managers many of whom turned out to be crooks.

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