Healthsouth Dissertation

Mohamed A. Hassan

Ph. Deb Research College student


By a business standpoint, any organization works hard to achieve the highest ranking placement among it is competitors and working on exhibiting loyalty to their customers' basic. However , in today's business world, this may not be the case as it has always been ever since the companies started and existed on the globe. Becoming competitive and the ability to retain an excellent base of loyal customers do not just happen with the blink of the vision (Jennings, 2009). Any business needs to be up to date with many elements such as effective leadership, development and imagination, ethical behaviors and credibility, positive firm culture, visibility and very good practices and others. Having said that, there are several organizations that are looking for to achieve more than is their very own normal functions capabilities so they can achieve a large set of goals and objectives and to gain bigger business than all their competitors at all the times. This kind of cases happened in the past with several companies including Enron, WorldCom and others. In such scams, the Entrepreneurs were offender of performing illegal actions and dishonest behaviors.

Health South: The Scrushy Way

Rich M. Scrushy, the former CEO of HealthSouth Corporation which usually owns a series of hostipal wards and clinics, benefitted coming from some of the most recognized celebrities which were associated with HealthSouth organization. The previous CEO utilized the celebrities' fame and reputation in order to gain more people and consumers to enter the facilities and also to seek their services. Moreover to using such an dishonest method to advertise and marketplace their business, HealthSouth likewise used to list on their website a number of the well understand name from the celebrities and sports characters that utilized their solutions and facilities. In the year 2003, the Investments and Exchange Commission (SEC) accused HealthSouth and its CEO Richard Scrushy with overstating and pumping up the earnings with the company. As well the national grand court charged Richard Scrushy about 85 counts including investments fraud, conspiracy theory and cash laundering while others charges relevant to inflating HealthSouth's earnings. Effect on Stakeholders

The dishonesty of Richard Scrushy and his managing team had a negative influence on HealthSouth's stakeholders including the workers, the customers, and the patients. Below I discuss the background of Richard Scrushy, the founder and CEO of HealthSouth; I also discuss influence on the stakeholders such as the workers, investors, and patients. Richard Scrushy

Rich Scrushy was obviously a high school dropout, after completing his GED, this individual studied in the University of Alabama and earned a qualification in respiration therapy in 1974. This individual worked since an instructor on the University of Alabama right up until 1979 after that he remaining academia and accepted a situation at a Texas medical care management organization (Heylar, Cherry wood, & Neering, 2003). Between 1984 and 1997, Scrushy started HealthSouth after the firm he performed at was sold. HealthSouth grew from a single facility to 2, 1000 facilities treating more than a hundred and twenty, 000 sufferers each day, with earnings of $106 mil (Solieri, Felo, & Hodowanitz, 2008). Rich Scrushy implemented certain developments in HealthSouth business model, a few of these trends were: making the employees work more quickly, lowering the medical care reimbursement, and emphasizing on rehabilitation services instead of surgery and he as well changed the HealthSouth therapy centers to a point that they looked like like they were high end clubs certainly not hospitals. The corporation acquired a great many other rehabilitation businesses and eventually it has become the largest supplier of rehab services in mid 1990's. In the year 2003, the Investments and Exchange Commission (SEC) accused HealthSouth and its CEO Richard Scrushy with overstating and pumping up the earnings from the company. As well the federal government grand jury charged Rich Scrushy on 85 is important including securities fraud, conspiracy theory and funds laundering yet others charges...

Recommendations: Enrione, A., Mazza, C., & Zerboni, F. (2006). Institutionalizing unique codes of governance. The American Behavioral Scientist, 49(7), 961-973. doi: twelve. 1177/0002764205285175

Glater, Jonathan D. (2003) " HealthSouth Appears Deeper Into Its Books. ” New York Occasions. (Late Copy, East Coast). New York, N. Y.: Jul 12, the year 2003. Retrieved from

Heylar, J., Cherry wood, B., & Neering, G. (2009, Summer 18). The bizarre rise and land of HealthSouth's Richard Scrushy. Money Journal. Retrieved by 2003/07/07/345534/index. htm

Sherlock holmes, S. A., Langford, M., Welch, U. J., & Welch, S. T. (2002). Associations between internal settings and company citizenship patterns. Journal of Managerial Problems, 14(1), 85-99. Retrieved from

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Jennings, M. (2009). Business values: Case research and selected readings (6th ed. ). Mason, OH YEA: South-Western Cengage Learning.

Lublin, J. H., & Carrns, A. (2003, April 11). Directors got lucrative links at HealthSouth. Wall Street Journal. s. B1, B3. Retrieved via

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Weil, Jonathan (2003a). " HealthSouth and Ernst Invigorate Flap More than Fee Disclosures. ” Wall Street Journal (Eastern edition). New York, N. Y.: Jul 1, 2003. Retrieved by

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