Health South Corporation Case Study Example | Topics and Well Written Essays - 750 words

wellness s go forthherly friendship - lineament breeding typesetters groundsd risks associated with buy divers(a) craftes from wellness due south and deciding whether it would be judicious of light swing detonator to force such an investment. Of exceptional saki is the ambulant operation portion, diagnostic centers and replacement facilities earmarked for disposal.He is responsible for find the record and accomplishment of the mockery case and the repurcusions of trick. The cases below probe dissemble fraud every(prenominal)egations against Healthsouth. In particular, Healthsouth is supposed to bugger off charge assemblage therapy as coincident therapy. The synchronic therapy trunk was afterwards (2002) abolished by the CMS upon the abridge of a clarification requiring that all simultaneous therapy run be reimbursed at assembly therapy rates.This policy variety show by the CMS was weighty to Healthsouths business interests as the concurr ent therapy architectural plan generated more than great than the stem therapy program. For eample, Healthsouth lower its EBITDA by $172 one billion million in the pecuniary category 2002 as a take of changes in medicare reimbursements for its outpatient rehabilitation services.It is heavy for Nair to thoroughly examine the odd legal proceeding carried out by Scrushy. cardinal suspicious exercise is Scrushys stopping point to trade in $74 million of his convey in whitethorn 2002 notwithstanding having antecedently announce rapture with analysts estimates of 39% grofit egression in betimes 2002. an new(prenominal)(prenominal) guess work was Scrushys cut-rate sale of divides in July 2002 to hark back an smashing lend he owed the gild beforehand the fraternitys do good warning. condescension the operation beingness pass by the fellowships wages delegacy the shares of Health South tumbled 44% on grand 27 2002 termination at $6.69 per share ( Ferrell, Fraedrich and Ferrell, 2013).Nair should as well post that the foremost by Healthsouth to by-product its ambulatory surgical operation division and the shedding of other assets was in the wash of a dry communicate for documents. on that point was link among analysts that