Healthsouth: the Rise and Fall

Topics: U.S. Securities and Exchange Commission, Richard M. Scrushy, World Wide Web Pages: 6 (2150 words) Published: July 19, 2005
Running head: HEALTHSOUTH: THE RISE AND FALL

HealthSouth: The Rise And Fall

Abstract

Richard Scrushy (Scrushy) had a vision and was driven by his leadership and entrepreneurial abilities. Scrushy was the mastermind and major creator of HealthSouth Corporation (HealthSouth). Scrushy served as chairman and Chief Executive Officer (CEO) of the corporation for more than 20 years. A Biographical Sketch: Richard Scrushy and HealthSouth. Retrieved March 22, 2005, from the World Wide Web: http://www.richardscrushy.com/biography.aspx. The U.S. Securities and Exchange Commission charged HealthSouth Corporation and CEO Richard Scrushy with fraud, alleging the earnings of HealthSouth have been extremely overstated since approximately 1999. Bassing, T. (2003, March 19). SEC charges Scrushy; 41.4B civil fraud alleged. Birmingham Business Journal. Retrieved March 23, 2005, from World Wide Web: http://birmingham.bizjournals.com/birmingham/stories/2003/03/17/daily30.html?t=printable. Scrushy has been replaced Jay Grinney (Grinney) who recently accepted the position of President and CEO of HealthSouth. Grinney has a vision for HealthSouth and is confident he will succeed in restoring the corporation to its original status of leadership in the world of healthcare.

HealthSouth: The Rise and Fall

Richard Scrushy (Scrushy) was born in Selma, Alabama in 1952. He had two siblings which consisted of an older sister and a younger brother. Scrushy was raised by two working parents and the family attended a local Methodist Church located in Selma. As a young boy, Richard was always able to find a job making money. His entrepreneur endeavor's emerged during his teenage years and continued there after. A Biographical Sketch: Richard Scrushy and HealthSouth. Retrieved March 22, 2005, from the World Wide Web: http://www.richardscrushy.com/biography.aspx.

Scrushy chose to continue his education beyond high school and was graduated from college, but not before marrying his first wife and becoming the father of two children. During his years in higher education, he became interested in respiratory therapy and enrolled in the respiratory therapy program at the University of Alabama at Birmingham (UAB). Scrushy was intellectually gifted, had excellent leadership abilities and quickly began climbing the corporate ladder of success which required leaving UAB and moving to Wallace State Community College in Dothan, Alabama. One year later, Scrushy accepted a position with Lifemark and began a flourishing rise in the corporate world. Scrushy had dreams of his own and during his successful ascend, began planning a new company. He visualized a rehabilitation corporation with outpatient centers, clinics and hospitals. These centers, which were only a dream, would swiftly move patients through physical rehabilitation and permit them to return to work, jobs, and home at a much quicker pace than individuals were accustomed. Scrushy's vision became a reality and would emerge in the world of health care as HealthSouth. A Biographical Sketch: Richard Scrushy and HealthSouth. Retrieved March 22, 2005, from the World Wide Web: http://www.richardscrushy.com/biography.aspx.
HealthSouth began operation in 1984 with five employees who shared a one room office. Scrushy supplied the majority of the money, paid payroll and business expenses out of his own pocket until spring of 1984. Twelve years after its founding, HealthSouth was named to the Fortune 500. HealthSouth had quickly become a major leader in rehabilitation, surgery, and diagnostics with operations in all fifty states. Centers were strategically placed in numerous countries outside the United States. The centers operated by HealthSouth and under the leadership of Scrushy were regarded highly for the outstanding service, commitment, and state-of-the-art technology. A Biographical Sketch: Richard Scrushy and HealthSouth. Retrieved March 22,...

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Bassing, T. (2003, March 19). SEC charges Scrushy; 41.4B civil fraud alleged. Birmingham Business Journal. Retrieved March 23, 2005, from World Wide Web: http://birmingham.bizjournals.com/birmingham/stories/2003/03/17/daily30.html?t=printable
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A Biographical Sketch: Richard Scrushy and HealthSouth. Retrieved March 22, 2005, from the World Wide Web: http://www.richardscrushy.com/biography.aspx.
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