HealthSouth Names Two Directors To Board
Ambulatory Safety Monitor, February 12, 2004
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Ambulatory surgery center (ASC) operator HealthSouth Corp. named two new directors to its board last week with no ties to former Chief Executive Officer Richard Scrushy.
Ed Blechschmidt and Steve Berrard replace George Strong and Chuck Newhall, who resigned in December as part of HealthSouth's settlement with the Louisiana teachers' pension fund. Members of a congressional panel investigating the alleged accounting fraud dating back to 1996 have criticized board members for ignoring warning signs of wrongdoing.
Scrushy has been indicted on 85 counts of securities fraud, conspiracy, and money laundering. Scrushy pleaded not guilty, saying he was unaware of any illegal accounting practices.
HealthSouth operates a network of more than 1,700 ASCs, rehabilitation clinics, and diagnostic imaging centers.
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