Rehab

HealthSouth says 75% rule hurt projections

Rehab Regs, September 16, 2005

HealthSouth Corp. says its second-quarter profits were lower than projected because of new Medicare regulations, according to the Birmingham News. HealthSouth earned $154 million before interest, taxes, depreciation, and amortization, which was $10.4 million lower than the national healthcare service expected. Jay Grinney, CEO of HealthSouth, told the Birmingham News much of this decline was due to a drop in inpatient rehab centers because of Medicare's 75% rule that requires three-quarters of patients to have one of 13 medical conditions in order to receive payments under the program. Grinney also said many other providers also suffered losses in patient volume due to the rule.

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