The Healthsouth Corporation Inc. - 3190 Words

INTRODUCTION The HealthSouth Corporation was started in 1984 by Richard Scrushy with hopes of becoming one of the largest healthcare companies in the country. It was doing quite well by 1996 with a market value of nearly $12 billion and was one of the United States largest healthcare firms. This all fell apart in 2003 when it was discovered that Scrushy and his employees had committed fraud in the estimated range of almost $2.7 billion (Daigle, Louwers and Morris 887). Scrushy, over the years, had brought on many new faces to the company. Many of these employees were friends of Scrushy from previous business ventures and business meetings. These employees and the others involved in the fraud were given the name ‘family’; highly due to the fact that they all knew what was happening and not one wanted to go to the authorities to confess. It was after the fraud had gone on for nearly six years that the former CFO Weston Smith tipped off federal investigators. Following the actions by Smith, the four other CFO’s who ran the company during the fraud came forward which included: Aaron Beam Jr., Michael Martin, Malcom McVay, and then current CFO William Owens. Along with the CFO’s their staff members who were also in on the fraud also came forward bringing the total number of involved to fifteen. Also the Birmingham Alabama office of Ernst Young came under heavy scrutiny for auditing HealthSouth during the fraud and failing to take action on any evidence they found.Show MoreRelatedHow Corporate Scandals Crush the Company, Investors, and Economy1333 Words   |  5 Pagesthe CEO and the founder of HealthSouth Corporation, was one of the most successful and respected business men in the state of Alabama. This is a story of a fallen American dream. HealthSouth Corporation is the United States’ largest inpatient rehabilitative hospital. HealthSouth provides the services of rehabilitative care to patients recovering from all kinds of conditions. It started in 1984, the company was originally named Amcare Inc. By the end of 1990, HealthSouth expanded to 50 facilitiesRead MoreThe Accounting Scandal of Healthsouth - Essay912 Words   |  4 PagesScandal of HealthSouth HealthSouth Corporation is based in Birmingham, Alabama, it is the largest provider of rehabilitative health care services. It operates in 26 states in the United States of America and in Puerto Rico. HealthSouth provides rehabilitation hospitals, long term heightened care hospitals, outpatient rehabilitation satellite clinics and home health agencies. HealthSouth was found by Richard Scrushy in the year 1984 and was called Amcare, Inc. It openedRead More Healthsouth: The Rise and Fall Essay1911 Words   |  8 Pages 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 WideRead MoreThe Sarbanes Oxley Act Of 20021530 Words   |  7 Pagesinformation for investors (Larry Bumgardner). The law also allows the Securities and Exchange Commission to oversee more corporate governance of company’s financial records. The Securities and Exchange Commission was given the power to freely investigate corporations or accounting firms who were thought to be creating false financial records or hiding expenses and/or debts. The Sarbanes-Oxley Act or (SOX) is there to protect investors from companies that could commit fraud to get more investors. This has addedRead More Richa rd Scrushy and HealthSouth Essay2155 Words   |  9 PagesIntroduction HealthSouth is one of the nation’s largest healthcare providers specializing in rehabilitation. HealthSouth was founded by Richard M. Scrushy in 1984 and went public in 1986. Scrushy served as its Chairman of the Board from 1994 to 2002. The company was incorporated in January 1984 as Amcare Inc. before its name was changed to HealthSouth Rehabilitation Corporation in May 1985. In January of 2003, Mr. Scrushy reassumed the position of CEO. HealthSouth grew rapidly duringRead MoreHealth Care Environments1007 Words   |  5 Pagesorganization is responsible for paying federal, state, and property taxes (Gapenski, 2006). Carter (2013) stated, â€Å"For-profit businesses may raise money by offering investors a percentage of ownership in the company. In the case of a for-profit corporation, investors can provide property, services, and cash in exchange for shares of the company’s stock (pg. 1). According to Lassiter and Arico (2013), the financial management practices used at Health South Rehabilitation Center has been effective becauseRead MoreAn Audit Of An Auditor2930 Words   |  12 PagesMadoff’s company books. Had the investors done so, they would have discovered that the Madoff enterprise was audited by Friehling Horowitz a small accounting firm with only one certified public accountant. Waste Management Fraud Waste Management Inc. is a waste management company located in Houston Texas It provides waste management and other services such as collection, recycling, disposal of waste materials, and converting waste to energy. The company also provides recycling brokerage, and electronicRead MoreTechniques And Fraud Schemes : Off Balance Sheet Techniques1148 Words   |  5 Pagesopportunity set up a large reserve cookie jar scheme to cover for future earnings losses (pp.1213-1214). Weld, Bergevin and Magrath (2004) research on HealthSouth revealed that the company was involved in cookie jar techniques on bad-debt reserve and big bath scheme on bad debt expense (pp.44-45). Ahmad et al. (2013) research on Sunbeam Corporation indicated that the company created inappropriate restructuring reserves to inflate income through cookie jar reserves by fabricating fake profits and creatingRead MoreEthical Problems With the Practice of Patient Dumping in the Healthcare Field1924 Words   |  8 PagesThr oughout this document, I will provide the ethical considerations regarding patient dumping and methods in which to prevent the spread of its practice. In particular, I aim to highlight the practices and potential ethical threats to Health South Inc. To begin with, patient dumping is not an entirely new phenomenon. The practice of patient dumping and refusal to care still, and will continue to be a widespread issue within the healthcare system. Patient dumping, in essence, is simply a large gameRead MoreFun with Dick and Jane Essay1547 Words   |  7 Pagesbar when he is inebriated and out of apparent guilt tells Dick what happened. At this point Frank, Dick and Jane come up with a plan on how to steal the money from Jack. The movie conveys to the audience that since the CEO stole money from his corporation and all the employees, it is okay to steal the money back from him. All of these ethical issues that Dick and Jane encounter through the movie are solved by one act. After their grand plan of stealing the money back fails, Dick confronts Jack