HealthSouth Settles Litigation With Senior Housing Properties Trust
November 08 2006 - 5:57PM
PR Newswire (US)
BIRMINGHAM, Ala., Nov. 8 /PRNewswire-FirstCall/ -- HealthSouth
Corporation (NYSE:HLS) announced today that it has reached a
settlement in its long- running litigation with Senior Housing
Properties Trust (NYSE:SNH). In January of 2002, HealthSouth leased
two hospitals in Massachusetts from Senior Housing Properties Trust
"SNH," Braintree Rehabilitation Hospital in Boston and New England
Rehabilitation Hospital in Woburn. An accounting fraud, perpetrated
against HealthSouth by members of its former management team, was
uncovered in March of 2003 and prevented HealthSouth from providing
timely and accurate financials for a period of several months while
the financials were reconstructed and restated. Shortly after
discovery of the accounting fraud, litigation was commenced and the
lease was ultimately terminated. HealthSouth continued to operate
the hospitals until Oct. 1, 2006. "We are pleased that this matter
is behind us so we can focus on our strategic plan for
HealthSouth's future," stated John Workman, HealthSouth Chief
Financial Officer. "It's unfortunate that members of our past
management team put us in this position, but we thank the staff of
both Braintree Rehabilitation Hospital and New England
Rehabilitation Hospital for their dedication over the years and
wish them well as they move forward." Under the terms of the
settlement, HealthSouth has agreed to pay an amount and all
litigation and other disputes between SNH and HealthSouth and their
various affiliates have been dismissed. Additional details of the
settlement were not disclosed. About HealthSouth HealthSouth
strives to be the healthcare company of choice for its patients,
employees, physicians and shareholders. Operating across the
country, HealthSouth is one of the nation's largest providers of
inpatient rehabilitative services, outpatient rehabilitation
centers, surgery centers, and diagnostic imaging centers.
HealthSouth can be found on the Web at http://www.healthsouth.com/.
Statements contained in this press release which are not historical
facts are forward-looking statements. In addition, HealthSouth,
through its senior management, may from time to time make
forward-looking public statements concerning the matters described
herein. Such forward-looking statements are necessarily estimates
based upon current information and involve a number of risks and
uncertainties. HealthSouth's actual results may differ materially
from the results anticipated in these forward-looking statements as
a result of a variety of factors. While it is impossible to
identify all such factors, factors which could cause actual results
to differ materially from those estimated by HealthSouth include,
but are not limited to the consummation of the proposed settlement
of pending litigation relating to HealthSouth's prior reporting and
financial practices; significant changes in HealthSouth's
management team; HealthSouth's ability to successfully consummate
transactions related to its previously announced strategic
repositioning; HealthSouth's ability to continue to operate in the
ordinary course and manage its relationships with its creditors,
including its lenders, bondholders, vendors and suppliers,
employees and customers; HealthSouth's ability to successfully
remediate its internal control weaknesses; changes, delays in or
suspension of reimbursement for HealthSouth's services by
governmental or private payors; changes in the regulation of the
healthcare industry at either or both of the federal and state
levels; competitive pressures in the healthcare industry and
HealthSouth's response thereto; HealthSouth's ability to obtain and
retain favorable arrangements with third-party payors;
HealthSouth's ability to attract and retain nurses, therapists, and
other healthcare professionals in a highly competitive environment
with often severe staffing shortages; general conditions in the
economy and capital markets; and other factors which may be
identified from time to time in the company's SEC filings and other
public announcements, including HealthSouth's Form 10-K for the
year ended December 31, 2005; Form 10-Qs for the quarters ended
March 31, 2006 and June 30, 2006. Media Contact Andy Brimmer,
205-410-2777 DATASOURCE: HealthSouth Corporation CONTACT: Media,
Andy Brimmer of HealthSouth Corporation, +1-205-410-2777 Web site:
http://www.healthsouth.com/
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