HealthSouth Reports $405.8-Million Loss
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HealthSouth Corp., the biggest U.S. operator of rehabilitation hospitals, reported a fourth-quarter loss of $405.8 million after Medicare cuts forced it to close clinics and write down the value of assets.
Investors are concerned that HealthSouth did fewer diagnostic tests and treated fewer patients at outpatient rehabilitation clinics, reducing revenue from managed-care insurers.
The net loss, equal to $1.03 a share, is the company’s biggest since at least 1990. HealthSouth had net income of $67.9 million, or 17 cents, in the same quarter a year earlier. Revenue fell 17% to $923.5 million.
Shares of the Birmingham, Ala.-based company fell 10 cents to $3.48 on the NYSE.
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