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HealthSouth Pays Fine to Resolve Charges

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Associated Press

HealthSouth Corp. said it paid $8.2 million to settle claims it overcharged Medicare in a deal involving a company owned by the parents of Chief Executive Richard M. Scrushy. The agreement ended a Justice Department lawsuit over the way the Birmingham, Ala.-based rehabilitation company accounted for a series of deals from 1992 through 1997.

The lawsuit involved the reporting of costs relating to leases of three rehabilitation hospitals, the purchase of computer equipment and services and the disposal of computer equipment owned by another company that HealthSouth bought in 1994.

The company said it admitted no liability in the settlement. HealthSouth fell 11 cents to $11.93 on the NYSE.

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