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85-693: In 2003, the U.S. Securities and Exchange Commission took action against the company's CEO, Richard M. Scrushy , who was accused of directing company employees to falsely report company earnings to meet stockholder expectations. The company currently operates three divisions: inpatient rehabilitation , home health , and hospice . The company formerly operated an outpatient rehabilitation, surgery center and diagnostics division. The company also previously owned and operated several acute care hospitals that specialized in orthopedics , but sold all of those hospitals by 2006. The former outpatient division also operated an occupational medicine division until 2001, when it

170-463: A $ 1.5 million partnership with Florida International University's Nicole Wertheim college of Nursing and Health Sciences, to expand its facilities to address the national nursing shortage. In October 2022, LCMC Health in partnership with Tulane University announced that it would acquire Tulane Medical Center , Lakeview Regional Medical Center , and Tulane Lakeside Hospital from HCA for $ 150 million pending regulatory approval. In March 2024, it

255-424: A blind trust, two weeks before disappointing earnings sent the stock on a 9-point plunge. At the time, Frist was considering a run for president and said that he had sold his shares to avoid the appearance of a conflict of interest. When the company disclosed that other executives had also sold their shares during that same time, shareholders alleged that the company had made false claims about its profits to drive up

340-500: A campus land management building. HealthSouth was able save money on the site preparation by making use of the many improvements Southern Company had already made to the property, which included utilities and an access road. The company moved into the new headquarters building in December 1996. In January 1995 the company entered the surgery center business with its $ 155 million acquisition of Surgical Health Corporation. One month later

425-440: A company that would bring together hospitals to deliver patient-focused care while using the combined resources of the organization to strengthen hospitals and improve the practice of medicine. The company began with Nashville's Park View Hospital, which the elder Frist had founded in 1960 with other doctors and where he was serving as chief executive. The company included 11 hospitals when it filed its initial public offering on

510-450: A current filer with the SEC. By doing so, the company restated earnings from 2000 to 2003. The company also sold or closed many underperforming facilities, including its medical center division, in its effort to return to profitability. On May 15, 2006, the company completed its goal of once again becoming a current filer with the SEC when it filed its first quarter 2006 financial result. It was

595-408: A deal with Google to develop healthcare algorithms using patient records. In August 2021, HCA announced a deal with venture capital firm General Catalyst to develop digital solutions to streamline workflows and improve patient care; as part of the deal, HCA sold its healthcare app development firm PatientKeeper to General Catalyst's portfolio company Commure. In April 2022, HCA Healthcare announced

680-542: A failed attempt to bring a state lottery to Alabama, in exchange for a seat on the Certificates of Need Review Board. The board serves the state by reviewing hospitals and approving their construction. Although the new charges were filed a month before the previous trial ended, Scrushy's attorneys accused prosecutors of filing charges as retaliation for Scrushy's acquittal. Scrushy and Siegelman pleaded not guilty to all charges, but they were both convicted following

765-585: A federal prison in Atlanta , Georgia , where they briefly shared a cell. Following the trial and conviction, Scrushy, Siegelman, and the prosecutors all indicated they would appeal . Scrushy and Siegelman vowed to appeal their convictions and sentences, while the prosecution announced its desire to appeal a judge's decision to remove charges of perjury from Scrushy's indictment. Prosecutors quickly dropped their appeal, and U.S. Attorney Alice Martin indicated they had reconsidered. Awaiting appeal, Scrushy

850-437: A few of the company's eleven corporate aircraft, which included a Gulfstream V and a Sikorsky S-76 C+ helicopter. In an effort to save money, the company halted construction of its Digital Hospital, for which building costs had doubled, to $ 400 million. On May 10, 2004, Jay Grinney was chosen by the board as the company's permanent CEO. Soon after Grinney's appointment, the company moved forward with its goal of again becoming

935-701: A new-built private hospital located close to the Queen Elizabeth Hospital, Birmingham , in January 2024. In recent years, HCA Healthcare has become a significant provider of clinical and medical education. It is the largest sponsor of graduate medical education programs in the U.S., with 56 teaching hospitals in 14 states, primarily in regions with a deficit of physician training programs. The company includes Research College of Nursing and Mercy School of Nursing, and has several advanced nursing simulation training centers. In early 2020, it completed

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1020-556: A nurse and 17 minutes to see a doctor. In February 2022, outsourced cleaning staff at London Bridge Hospital reported a lack of PPE, no access to sick pay, a lack of training and no prior warning about which rooms may be contaminated with the virus through the COVID-19 pandemic . The Princess Grace Hospital specializes in breast cancer and surgery, aided by Kefah Mokbel and Nick Perry who, in 2005, founded The London Breast Institute. The company intends to open The Harborne Hospital,

1105-815: A position teaching at the Wallace State campus in Dothan . There, Scrushy met and married his second wife, Karen Brooks. The two had four children before they divorced in 1996. In early June 1997, Scrushy married Leslie Anne Jones in Jamaica, with guests such as Martha Stewart attending. The group met at the HealthSouth Hangar at the Birmingham International Airport and boarded a chartered Boeing 727 to Jamaica. Together Richard and Leslie have had three children. In

1190-498: A public company in 1992. In February 1994, HCA Healthcare merged with Louisville, Kentucky -based Columbia Hospital Corporation, which earlier had acquired 73 hospitals of Galen Health Care from Humana, to form Columbia/HCA Healthcare Corporation. Related names of note include HCA International and Health Corporation of America. In 1988, Rick Scott and Richard Rainwater each put up $ 125,000 in working capital in their new company, Columbia Hospital Corporation ; they borrowed

1275-515: A trial that lasted approximately six weeks. Scrushy was convicted of bribery, conspiracy, and mail fraud, while Siegelman was convicted of bribery, conspiracy, mail fraud, and obstruction of justice. While awaiting sentencing, on March 29, 2007, Scrushy's probation officer filed a report claiming that Scrushy had violated the conditions of his bond by leaving Walt Disney World in Orlando , Florida and traveling to Palm Beach , where he boarded

1360-484: A yacht and sailed to Miami . The probation officer suggested that Scrushy should be placed under house arrest and that he be required to wear an electronic monitoring device at all times. United States Magistrate Judge Charles Coody warned Scrushy that he "would not tolerate any future deviations from the requirements the court has placed on" him and ruled that Scrushy must wear a GPS tracking device anytime he travels outside of Alabama. On June 28, 2007, Scrushy

1445-482: A year at Wallace State, Scrushy transferred to Jefferson State Community College and later entered the respiratory therapy program at the University of Alabama at Birmingham (UAB). Upon graduating from UAB's program, Scrushy was offered a position teaching at the university, where he was promoted to director during his two-and-a-half-year tenure. Scrushy divorced his wife, with whom he had two children, and took

1530-592: A year. The new company opened its first facility in Little Rock , Arkansas , and had initial capital between $ 50,000-$ 70,000. With the assistance of four partners from Amcare Inc. and a one million dollar investment by Citicorp Venture Capital , Scrushy took the quickly growing company and founded HealthSouth Corporation in 1984. Two years after its founding, HealthSouth became a publicly traded company. The next year, HealthSouth expanded into two new fields, worker's compensation and sports medicine , allowing

1615-523: Is an American for-profit operator of health care facilities that was founded in 1968. It is based in Nashville, Tennessee , and, as of May 2020, owned and operated 186 hospitals and approximately 2,400 sites of care, including surgery centers, freestanding emergency rooms, urgent care centers and physician clinics in 20 states and the United Kingdom. As of 2024, HCA Healthcare is ranked #61 on

1700-509: Is operating the two facilities as off-campus emergency departments of Lake City (Fla.) Medical Center and North Florida Regional Medical Center in Gainesville. Later that year, it signed an agreement to sell Garden Park Medical Center to Singing River Health System. In 2021, HCA sold Redmond Regional Medical Center to AdventHealth for $ 635M, and four other Georgia hospitals to Piedmont Healthcare for $ 950 million. They also announced

1785-606: The Federal Bureau of Investigation (FBI) announced that it had begun a criminal investigation relating to the "trading of shares of the HealthSouth Corporation" and possible securities law violations. A criminal complaint was filed by the FBI against HealthSouth's chief financial officer , Weston Smith, and civil charges were brought against Scrushy by the SEC. Scrushy became the first CEO to be tried under

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1870-730: The Federal Bureau of Investigation (FBI), Scrushy was criminally charged by the U.S. Securities and Exchange Commission (SEC). Scrushy was charged with 36 of the original 85 counts but was acquitted of all charges on June 28, 2005, after a jury trial in Birmingham. Four months after his acquittal in Birmingham, on October 28, 2005, Scrushy was indicted by a federal grand jury in Montgomery, Alabama , along with former Alabama Governor Don Siegelman . The indictment included 30 counts of money laundering , extortion , obstruction of justice , racketeering , and bribery . Although

1955-682: The Fortune 500 rankings of the largest United States corporations by total revenue. The company engaged in illegal accounting and other crimes in the 1990s that resulted in the payment of more than $ 2 billion in federal fines and other penalties, and the dismissal of the CEO Rick Scott by the board of directors. Hospital Corporation of America ( HCA ) was founded in 1968 in Nashville, Tennessee, by Thomas F. Frist Sr. , Thomas F. Frist Jr. and Jack C. Massey . The founders envisioned

2040-716: The Sarbanes–Oxley Act when he was indicted by the U.S. Department of Justice in United States of America v. Richard M. Scrushy on November 4, 2003. Scrushy's initial charges included 85 counts of conspiracy , money laundering , securities fraud , and mail fraud , but he was ultimately indicted with just 36 counts. In the indictment, Scrushy was accused of using intimidation, threats, and cash payments to coerce top HealthSouth executives into committing fraud. These top executives called themselves "The Family" and referred to their creative accounting as "filling

2125-423: The U.S. Securities and Exchange Commission (SEC) filed a civil suit against Scrushy and HealthSouth alleging the company had falsified at least $ 2.7 billion worth of profit between 1996 and 2002. HealthSouth agreed to pay the United States government $ 325 million on December 30, 2004, in order to "settle allegations that the company defrauded Medicare and other federal healthcare programs". On February 6, 2003,

2210-404: The U.S. Securities and Exchange Commission took action against HealthSouth regarding a corporate accounting scandal , in which its founder , chairman , and chief executive officer , Richard M. Scrushy , was accused of directing company employees to falsely report grossly exaggerated company earnings in order to meet stockholder expectations. In March 2003, HealthSouth's CEO Richard M. Scrushy

2295-502: The 1990s, becoming the largest comprehensive rehabilitative services company in the U.S., ethical and financial questions began to arise as early as 1989. An internal auditor alleged that he was fired for drawing attention to HealthSouth's financial problems and that he was pressured to meet certain earnings targets. Two years later, in 1991, HealthSouth was accused by Medicare of illegally adding costs to reports for outpatient physical therapy and inpatient rehabilitation admissions at

2380-566: The 59-year-old Scrushy was moved in April 2012 from the federal prison in Beaumont, Texas into the supervision of the community corrections management field office in San Antonio . Following his move to a halfway house , Scrushy was moved to home confinement, and then, on July 25, 2012, was released from federal custody. Hospital Corporation of America HCA Healthcare, Inc.

2465-478: The Columbia/HCA board of directors forced Rick Scott to resign as chairman and CEO amid growing evidence that the company "had kept two sets of books, one to show the government and one with actual expenses listed." Thomas Frist, a co-founder of HCA and brother of U.S. Senator Bill Frist , returned to the company as CEO in 1997 and called on longtime friend and colleague Jack O. Bovender Jr. to help him turn

2550-695: The Memorial University Medical Center in Savannah, Georgia. That same year, they acquired three Houston, Texas, hospitals from Tenet Healthcare . In 2019 they purchased Mission Health System which operates hospitals in North Carolina. In January 2020, HCA Healthcare acquired Valify, a healthcare cost-management company. In May 2020, HCA acquired 49-bed Shands Starke (Fla.) Regional Medical Center and 25-bed Shands Live Oak (Fla.) Regional Medical Center from CHS. HCA

2635-488: The New York Stock Exchange (NYSE) in 1969 and had 26 hospitals and 3,000 beds by the end of the year. The 1970s were characterized by rapid growth in the industry and for HCA Healthcare. In the early 1980s, the focus shifted to consolidation with HCA Healthcare acquiring General Care Corporation, General Health Services, Hospital Affiliates International and Health Care Corporation. By the end of 1981,

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2720-908: The United Kingdom. A significant portion of those hospitals are situated in Florida and Texas. As of 2022, HCA had 47 hospitals and 31 surgery centers in Florida, and 45 hospitals and 632 affiliated sites of care in Texas. In 2021, it announced plans to build 3 new hospitals in Florida. In 2022, The Dallas Morning News reported that HCA will build 5 new hospitals in Texas. They also have a strong presence in Tennessee, where it began. HCA had 13 hospitals there as of 2019. Between 2003 and 2017, HCA did not enter any new markets. However, in July 2007, HCA sold its hospitals in Switzerland. In 2017, HCA acquired

2805-657: The acquisition of Meadows Regional Medical Center. HCA International , the UK arm of Hospital Corporation of America , "caters for around half of all private patients in London." The main hospital sites within the United Kingdom it operates include: It opened urgent care walk-in centres at London Bridge Hospital and the Portland Hospital in March 2018. It claims that patients, on average, wait just seven minutes to see

2890-528: The acquisition, HealthSouth sold the long-term care assets of Horizon/CMS it did not need to Integrated Health Services for $ 1.15 billion in cash. HealthSouth along with many Healthcare publications called this the "deal of the century". Also in February 1997 the company finally moved into its new corporate headquarters. The headquarters building itself contained a company store and museum. HealthSouth continued on its acquisition spree through 1999 by purchasing

2975-409: The cash for interest payments of senior bonds and principal payments due on a $ 344 million convertible bond . The board agreed that the company's cash flow problems were too great to tackle on its own. At the advice of its lender JPMorgan Chase , the company hired restructuring firm Alvarez and Marsal to bring its finances in order and immediately appointed Bryan Marsal Chief Restructuring Officer. By

3060-504: The company acquired Novacare 's entire rehabilitational hospital business for $ 215 million in cash. In 1996 the company expanded into diagnostics with its purchase of Health Images Inc. In the beginning of 1996 the company adopted the slogan " The Healthcare Company of the 21st Century ". Less than a year later the company adopted the "H" logo as its corporate identity. HealthSouth made its largest acquisition yet when it purchased Horizon/CMS for $ 1.8 billion in 1997. A few months later after

3145-444: The company acquired Caremark Orthopedic Services. Throughout the mid-1990s, HealthSouth expanded rapidly through mergers and acquisitions. In 1995, the company changed its name to HealthSouth Corporation to better reflect its diversified interests in healthcare. On August 31, 1995, HealthSouth CEO Richard Scrushy announced that HealthSouth was going to build a new headquarters on US Highway 280 in Birmingham. The new corporate campus

3230-531: The company around. The federal probe culminated in 2003 with "the government receiving a total of over $ 2 billion in criminal fines and civil penalties for systematically defrauding federal health care programs." Columbia/HCA pleaded guilty to 14 felonies and admitted to systematically overcharging the government. The federal probe has been referred to as the longest and costliest investigation for health-care fraud in U.S. history. In July 2005, U.S. Senator Bill Frist sold all of his HCA shares, which were held in

3315-536: The company changed its name to HealthSouth Rehabilitation Corporation . In 1986, the company went public with its IPO on the NASDAQ Stock Exchange under the ticker symbol HSRC. At the end of the company's last investor roadshow presentation in New York City before its IPO, Scrushy received a standing ovation from the investment bankers in attendance, an extreme rarity. In September 1988,

3400-559: The company moved to the New York Stock Exchange and became listed under the symbol HRC. By 1990 the company had expanded to 50 facilities across the US. HealthSouth finished out 1992 with $ 400 million in annual revenue. In 1993, the company acquired 28 hospitals and 45 outpatient rehabilitation facilities from National Medical Enterprise for around $ 300 million in cash. In 1994, HealthSouth further expanded when it announced it would buy fellow Birmingham-based ReLife for $ 180 million in stock. In 1995,

3485-450: The company operated 349 hospitals with more than 49,000 beds. Operating revenues had grown to $ 2.4 billion. In 1987, HCA Healthcare, which had grown to operate 463 hospitals (255 owned and 208 managed), spun off HealthTrust, a privately owned, 104-hospital company. Believing its stock was undervalued, the company completed a $ 5.1 billion leveraged management buyout led by chairman Thomas F. Frist Jr. in 1988. HCA Healthcare re-emerged as

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3570-474: The company posted a large loss. HealthSouth was accused by the U.S. Securities and Exchange Commission (SEC) of an accounting scandal where the company's earnings were falsely inflated by $ 1.4 billion. In 1996, Scrushy allegedly instructed the company's senior officers and accountants to falsify company earnings reports in order to meet investor expectations and control the price of the company's stock. The fraud continued for seven years. In certain fiscal years,

3655-635: The company to double its earnings and obtain assets close to $ 100 million. By the early 1990s, the company had expanded even more, with facilities in each of the 50 U.S. states and revenues in excess of $ 181 million. Over the next decade, HealthSouth's sports medicine programs received international attention by being linked to star athletes including Bo Jackson , who served as the president of HealthSouth's Sports Medicine Council; Roger Clemens ; Jack Nicklaus , Kyle Petty ; Michael Jordan ; Shaquille O'Neal , and Lúcio Carlos Cajueiro Souza . At its height, HealthSouth employed more than 50,000 physicians,

3740-448: The company's headquarters after the company's chief financial officer William Owens agreed to wear a wire in a failed attempt to get Scrushy to talk about the fraud. The board of directors worked vigorously on rectifying the accounting issues, starting with the termination of CEO Scrushy in 2003 and paying $ 325 million in 2004 regarding allegations of the company having defrauded various federal healthcare programs. In June 2005, Scrushy

3825-504: The company's income was overstated by as much as 4700%. The $ 1.4 billion represents more than 10% of the company's total assets. At one point, the company's corporate taxes—based on its fraudulent earnings—were higher than its actual earnings. In 1998, HealthSouth was accused of violation of the Securities Exchange Act by failing to disclose negative trends and misrepresenting company's financial information. In 2003,

3910-407: The corporation was renamed HCA Healthcare. In December 2018, a historical marker was installed in the parking lot of HCA's Sarah Cannon Cancer Center in Nashville, formerly the location of HCA's first hospital, Park View Hospital. In 2018, the company was ranked No. 67 in the 2019 Fortune 500 list of the largest United States corporations by total revenue. In May 2021, the company finalized

3995-415: The corporation's Bakersfield Rehabilitation Hospital. In 1998, Medicare changed its funding arrangements in an attempt to reduce exploitation and payments by $ 100 billion. Scrushy insisted that the change would not affect HealthSouth's bottom line but profits dropped by 93 percent by the end of the year. Around this same time, HealthSouth began facing additional accusations of fraud . An investigation by

4080-468: The courtroom. Scrushy was interviewed by Mike Wallace for a 60 Minutes segment called "Cooking The Books", began hosting a Christian television show with his wife called Viewpoint , backed a citywide 40-day prayer movement referred to as "City, thou art loosed", and joined the predominantly African-American Guiding Light Church. These actions were seen as an attempt to sway potential jurors, since 70 percent of Birmingham's population, and eleven of

4165-561: The eighteen jurors, were African American. Following more than a month of deliberations , Scrushy was acquitted of all charges on June 28, 2005. On October 26, 2005, four months after his acquittal in Birmingham, Scrushy was indicted by a federal grand jury in Montgomery . The indictment included 30 counts of racketeering, money laundering, extortion , obstruction of justice , and bribery of Alabama Governor Don Siegelman . Prosecutors claimed that Scrushy had agreed to pay over $ 500,000 of Siegelman's debt, which he accumulated during

4250-481: The end of 2003, the company had most of its finances reorganized and was able to avoid Chapter 11 bankruptcy . Efforts were made at the corporate headquarters to eradicate all signs of the prior existence of Scrushy within the company. The board removed Scrushy's name from the conference center, closed the company store and museum and opened the fifth floor executive offices to all employees, which, during Scrushy's tenure, had been kept away. The board also sold all but

4335-402: The first time the company had filed a 10-Q since its accounting scandal began. On August 14, 2006, the company unveiled its restructuring plan which included the sell, spin-off or other disposition of its surgery, outpatient, and diagnostic divisions, along with a 1-for-5 reverse stock split, to coincide with its relisting on the New York Stock Exchange under the symbol HLS. The reverse stock split

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4420-410: The gap". The group attempted to hide the false earnings by illegally inflating balances of accounts such as fixed assets and estimated insurance reimbursements. Despite multiple chief executives testifying against Scrushy, prosecutors were unable to produce any material evidence that he had been involved in the fraudulent accounting. During the trial, Scrushy defended himself both inside and outside

4505-434: The insurance company Blue Cross and Blue Shield of Alabama determined that HealthSouth had "improperly billed Medicare for therapy by students, interns and other unlicensed aides". Additional lawsuits alleged HealthSouth had committed widespread abuse of Medicare by "billing for services it never provided, delivering poor care, treating patients without a formal plan of care, and using unlicensed therapists". In March 2003,

4590-641: The lack of PPE. In April 2020, there was an outcry against HCA following the deaths of two nurses Celia Yap-Banago and Rosa Luna who worked at HCA hospitals in Kansas City and California and had contracted coronavirus, despite the alarm having been raised about the lack of PPE at work. On December 14, 2023, the North Carolina Attorney General sued HCA for violating the terms of an agreement that allowed HCA to purchase Mission Health. On February 13, 2024, HCA Healthcare denied

4675-447: The late 1970s, following his time teaching at UAB and Wallace State, Scrushy was offered a position with Lifemark Corporation, a Houston , Texas -based health care company. Within a few years of being hired at Lifemark, Scrushy was part of a $ 100 million operation that included the pharmacy, physical rehabilitation, and hospital acquisition divisions. While working for Lifemark, Scrushy moved to St. Louis , Missouri , where he worked as

4760-528: The majority of Columbia/HCA's surgical division. In 2001 the company announced it would, along with Oracle Corporation , build the world's first all-digital hospital on its corporate campus. The 13 story structure was meant as a replacement for its aging HealthSouth Medical Center in downtown Birmingham. Construction began soon after on the new HealthSouth Medical Center. The first of HealthSouth's accounting problems surfaced in late 2002 after CEO Richard M. Scrushy sold $ 75 million in stock several days before

4845-677: The new charges were filed a month before the previous trial ended, Scrushy's attorneys accused prosecutors of filing charges as retaliation for Scrushy's acquittal. Scrushy pleaded not guilty to all charges, but was convicted along with Siegelman in June 2006. On May 7, 2009, Scrushy was transferred from the Texas jail where he had been incarcerated and placed in the custody of the Shelby County Jail in Columbiana, Alabama . Scrushy

4930-462: The new surgery center company would remain headquartered in Birmingham. The transaction was completed on June 30, 2007, with the creation of Surgical Care Affiliates . On April 29, 2007, HealthSouth announced a definitive agreement to sell its diagnostic division to the Gores Group for $ 47.5 million. It was also announced that the newly formed company was to remain in Birmingham. The transaction

5015-544: The price, which then fell when the company reported disappointing financial results. Eleven of HCA's senior officers were sued for accounting fraud and insider trading . HCA settled the lawsuit in August 2007, agreeing to pay $ 20 million to the shareholders but admitting no wrongdoing, and no charges were brought. During the COVID-19 pandemic in the United States , HCA hospital nurses and other workers spoke out about

5100-674: The purchase of a majority stake in Galen College of Nursing , which operates 21 campuses in 12 states, offering Bachelor of Science and Associate of Science nursing degrees. In 1993, lawsuits were filed against HCA by former employees who alleged that the company had engaged in questionable Medicare billing practices. In 1997, with a federal investigation by the FBI , the IRS and the Department of Health and Human Services in its early stages,

5185-414: The raid at the company's corporate headquarters, the board of directors held an emergency meeting to discuss changes moving forward. One of the first actions was the termination of Richard Scrushy as chairman and CEO, and William Owens as CFO. Robert P. May was elected as interim CEO and Joel C. Gordon as chairman. Another issue that was immediately addressed by the board was the means by which it would obtain

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5270-492: The regional director of the respiratory therapy division. He then moved to Houston where he became the company's chief operating officer . Still working for Lifemark, Scrushy devised a plan for an outpatient diagnostics and rehabilitative health clinic chain. He presented the plan to Lifemark, but the company was unable to act on it due to a company merger that was already underway with American Medical International. Scrushy left Lifemark in 1983 and founded Amcare, Inc within

5355-663: The remaining money needed to purchase two struggling hospitals in El Paso for $ 60 million. Then they acquired a neighboring hospital and shut it down. Within a year, the remaining two were doing much better. By the end of 1989, Columbia Hospital Corporation owned four hospitals with a total of 833 beds. In 1992, Columbia made a stock purchase of Basic American Medical, which owned eight hospitals, primarily in southwestern Florida. In September 1993, Columbia did another stock purchase, worth $ 3.4 billion, of Galen Healthcare, which had been spun off by Humana Inc. several months earlier. At

5440-540: The state, three years' probation, a $ 50,000 fine, and 500 hours of community service upon his release. U.S. District Judge Mark Fuller would later rule, however, that Sieglman would not be required to pay the $ 181,325 in restitution. The restitution was based on debts accumulated by the State of Alabama during a fraudulent warehouse deal, but Siegelman was acquitted on charges related to the deal. Upon sentencing, Scrushy and Siegelman were taken into custody and transported to

5525-556: The time, Galen had approximately 90 hospitals. After the purchase, Galen stockholders had 82% of the stock in the combined company, with Scott still running the company. On November 17, 2006, HCA became a private company for the third time when it completed a merger in which the company was acquired by a private investor group including affiliates of Kohlberg Kravis Roberts and Bain Capital , together with Merrill Lynch and HCA Healthcare founder Thomas F. Frist Jr. The total transaction

5610-508: The trial on May 27, 2009. On June 18, 2009, Judge Horn ordered Scrushy to pay $ 2.87 billion in damages . Judge Horn stated, "Scrushy knew of and actively participated in the fraud" and referred to Scrushy as the "CEO of the fraud". As expected, Scrushy appealed the judgment to the Alabama Supreme Court . On January 28, 2011, Scrushy lost his appeal of the civil verdict. According to the Federal Bureau of Prisons website,

5695-431: Was 17. He dropped out prior to graduating from Parrish High School and married. Scrushy soon found himself living in a Selma trailer park and working manual labor jobs to support his family. After a run-in with a boss, Scrushy quit his job hauling cement and decided to return to school. He earned his GED and, at his mother's advice, began studying respiratory therapy at Wallace State Community College . After

5780-589: Was acquitted on all 36 of the accounting fraud counts against him, most notably one count in violation of the Sarbanes-Oxley Act . By mid-to-late 2006, HealthSouth, which avoided filing for Chapter 11 Bankruptcy Protection, completed its recovery and relisted its stock on the New York Stock Exchange under the symbol HLS. In 2009, Scrushy was sued for fraud by HealthSouth investors and ordered to repay his company $ 2.8 billion. Following

5865-525: Was also denied by the 11th U.S. Circuit Court of Appeals on May 15, 2009. Scrushy appealed to the U.S. Supreme Court . On June 29, 2010, the Supreme Court issued an order directing the appeals court to review the case in light of their (Supreme Court's) ruling the previous week on the "honest services" fraud statute. On June 4, 2012, the Supreme Court rejected Scrushy's appeal, allowing his public corruption and bribery convictions to stand. Scrushy

5950-465: Was announced HCA had completed the sale of West Hills Hospital and Medical Center and related assets in Los Angeles, California to UCLA Health , for an undisclosed amount. As of 2024 , HCA has 186 hospitals. They also report operating more than 2,400 additional sites of care, including surgery centers, freestanding ERs, urgent care centers, and physician clinics located in 20 U.S. states and in

6035-498: Was approved by stock holders at a special meeting at the company's corporate headquarters on October 18, 2006. The last step in HealthSouth's recovery from its accounting scandal occurred on October 26, 2006, when it was again relisted on the New York Stock Exchange. On January 29, 2007, the company announced it would sell its more than 600 outpatient centers to Select Medical Corporation for $ 245 million in cash. The transaction

6120-498: Was born in August 1952 in Selma , Alabama . The son of a middle-class family, his father, Gerald Scrushy, worked as a cash register repairman and his mother, Grace Scrushy, worked as a nurse and respiratory therapist . At an early age, Scrushy taught himself to play the piano and guitar and was earning money doing odd jobs by the time he was twelve years old. Scrushy, who then went by his middle name Marin, attended school until he

6205-575: Was briefly transported to a transfer site for inmates in Oklahoma City before being sent to his permanent location at a low-security federal prison in Beaumont , Texas . Scrushy filed a request with the 11th U.S. Circuit Court of Appeals , asking to be released on appeal bond . The 11th US Circuit Court of Appeals rejected Scrushy's request to be released on bond, citing an earlier ruling written by U.S. District Judge Mark Fuller. The ruling

6290-437: Was charged with the accounting fraud and the SEC announced it was investigating whether Scrushy's stock sale was related to HealthSouth posting a large loss. HealthSouth hired an outside law firm to review Scrushy's stock sale, with the firm concluding that the sale and profit loss were not related, although this did not take the company off the SEC's radar. On the evening of March 18, 2003 FBI agents executed search warrants at

6375-515: Was completed on July 31, 2007, with Diagnostic Health Corporation being formed. In July 2010, HealthSouth gave the American Cancer Society of Alabama the black V-12 2000 BMW 750iL , a bullet-proof sedan that HealthSouth purchased for security reasons under former CEO Richard Scrushy. Scrushy bought the car from HealthSouth in 2003 after an accounting scandal broke. Scrushy also owned a maroon 2000 bullet-proof V-12 BMW 750iL that

6460-404: Was completed on May 1, 2007. On March 26, 2007, HealthSouth announced it would sell its surgery center division to private investment partnership TPG Capital for $ 920 million in cash and equity interest in the newly formed company worth between $ 25 million and $ 30 million. The surgery center division comprised 139 outpatient surgery centers and three surgical hospitals. It was also announced that

6545-399: Was issued while Scrushy was on bond awaiting sentencing, and deemed him a flight risk. Scrushy again filed for release in February and May 2008 but both requests were denied. In March 2009, a panel of three judges from the 11th U.S. Circuit Court upheld all charges against Scrushy and dismissed two of the seven charges against Siegelman. A further appeal for a full court review of the case

6630-524: Was returned to Alabama in order to testify in a new civil trial in the Jefferson County Circuit Court brought against him by shareholders of HealthSouth who sought damages related to Scrushy's trial and conviction. On June 18, 2009, Judge Allwin E. Horn ruled that Scrushy was responsible for HealthSouth's fraud, and ordered him to pay $ 2.87 billion. On July 25, 2012, Scrushy was released from federal custody. Richard M. Scrushy

6715-476: Was returned to Alabama on May 7, 2009, in order to testify in a new civil trial in a Birmingham court. Former HealthSouth investors had sued him seeking recompense for money lost due to the fraud of which Scrushy was acquitted in 2005. While opposing counsel claimed Scrushy was a "hands-on manager who treated the company as a personal piggy bank," he continued to assign blame to his subordinates and maintain that he did nothing wrong. Closing arguments were heard in

6800-401: Was sentenced to six years and ten months in a federal prison, ordered to pay $ 267,000 in restitution to United Way of Alabama , three years' probation , and a fine of $ 150,000. Scrushy is also expected to personally pay for his time in prison and perform 500 hours of community service. Siegelman was sentenced on the same day to seven years and four months in prison, restitution of $ 181,325 to

6885-609: Was sold in 2009 by HealthSouth as part of a civil judgment against Scrushy. In 2009, HealthSouth had obtained ownership of Scrushy's black 2000 BMW 750iL. In 2014, HealthSouth purchased Encompass Home Health and Hospice. Richard Scrushy Richard Marin Scrushy (born August 1952 ) is an American businessman and convicted felon . He is the founder of HealthSouth Corporation , a global healthcare company based in Birmingham , Alabama . In 2004, following an investigation by

6970-469: Was sold. HealthSouth also sold its Long-term acute care facilities in May 2011. The long-term hospitals contributed around $ 200 million in revenue. HealthSouth was incorporated in Birmingham, Alabama as a Delaware company on February 22, 1984, as Amcare, Inc. by its founder Richard M. Scrushy . The company opened its first facility in Little Rock, Arkansas and one in Birmingham later that year. In 1985

7055-438: Was the "nation's largest provider of outpatient surgery and rehabilitative and diagnostic healthcare services", and had over 2,000 facilities in the United States, Puerto Rico, Australia, and the United Kingdom. HealthSouth facilities worldwide saw more than 120,000 patients daily, and with earnings around $ 106 million in 1997, Scrushy was the third-highest-paid CEO in the U.S. Although HealthSouth grew tremendously throughout

7140-488: Was to be built on 85 acres (340,000 m) of land that the company had bought from Southern Company earlier that year. Southern Company had abandoned plans to build a corporate campus on the site, opting for an office complex further down Highway 280 in the Inverness area. The corporate campus plans included a five-story headquarters building with a connecting conference center, parking deck, print production building, and

7225-458: Was valued at approximately $ 33 billion, making it the largest leveraged buyout in history at the time, eclipsing the 1989 buyout of RJR Nabisco . In May 2010, HCA announced that the corporation would once again go public with an expected $ 4.6-billion IPO as HCA Holdings, Inc. In March 2011, HCA sold 126.2 million shares for $ 30 each, raising about $ 3.79 billion, at that time, the largest private-equity backed IPO in U.S. history. In May 2017,

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