The IRS has given back $440 million to HealthSouth Corp., refunding taxes it overpaid when it filed inflated income statements from 1996 to 1999. The added cash should help the new HealthSouth continue to improve its financial condition, most likely by paying down its $2.4 billion in debt.
In recent times, HealthSouth has been focused on improving inpatient rehabilitation services and righting its financial ship. The company recently shed its outpatient, diagnosis and surgical centers, a move which brought in more than $1 billion. Meanwhile, HealthSouth should soon have more free cash, as it's making final payments this quarter on the $325 million settlement it reached in 2004 to address fraud committed by former CEO Richard Scrushy.
To find out more about the IRS repayment:
- read this Birmingham Business Journal article [1]
Related Articles:
HealthSouth's Scrushy going to jail. Report [2]
Doctors sue HealthSouth over surgery centers sale. Report [3]
HealthSouth touts expansion plans. Report [4]
HealthSouth continues restructuring. Report [5]
Links:
[1] http://www.bizjournals.com/birmingham/stories/2007/10/15/daily1.html?b=1192420800^1535197
[2] http://www.fiercehealthcare.com/story/healthsouth-s-scrushy-going-to-jail/2007-06-29
[3] http://www.fiercehealthcare.com/story/doctors-sue-healthsouth-over-surgery-centers-sale/2007-06-18
[4] http://www.fiercehealthcare.com/story/healthsouth-touts-expansion-plans/2007-05-24
[5] http://www.fiercehealthcare.com/story/healthsouth-continues-restructuring/2007-04-20