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Introduction This paper will cover the HealthSouth Corporation. After a humble beginning and a stunning growth in the healthcare industry, HealthSouth was rocked by corporate scandal. HealthSouth is now trying to recover from this devastation that brought the company to the doorstep of ruin and continue to do what is outline in its Mission Statement. • Founded in 1984 • Operates a network of nearly 1,700 facilities, including outpatient surgery, rehabilitation and diagnostic imaging centers, as well as rehabilitation hospitals and acute-care medical centers • The only healthcare company operating facilities in all 50 states • Operates healthcare facilities outside the United States in the United Kingdom, Australia, Puerto Rico, Canada and Saudi Arabia • Employs approximately 50,000 medical and business professionals • Works with more than 85,000 referring physicians Recently this growing company was rocked by corporate scandal, as the top executives were part of a suit filed by the SEC, for overstating earning and manipulating stocks. Table of Contents Company History and Background 4, 5, 6, 7 Company’s Organizational Structure 8, 9 Current CEO, Senior Officers and Annual Compensation 10 - 16 Company’s 10 year Monthly Historical Stock Price 17 Evaluation of Company’s Effectiveness17, 18 Analysis of Change programs 18 Aspects of Communication, Leadership and Motivation Programs 19, 20 Potential Future Organizational Structure 20 Forecast of Company’s Future Effectiveness 21 Summary 21 Reference List 21, 22 Company History and Background 1984 Five men pooled their resources and formed a company that would restructure the rehabilitation industry in less than a decade. HealthSouth began its mission led by one the finest management teams in the industry, with a vision of how patients should move smoothly through a logical healthcare system that offers highly technical, less-invasive, cost-effective procedures in the most cost-efficient manner possible. During its early years, HealthSouth established itself as an industry leader by providing high-quality, cost-effective rehabilitative services. Its extensive, user-friendly network attracted the business of the nation's largest managed care organizations, insurance companies and employers. It also received the approval of millions of consumers who experienced HealthSouth's superior care. 1990 HealthSouth expanded to 50 outpatient locations. 1994 The total number of outpatient locations grew to approximately 250, making HealthSouth the nation's largest provider of comprehensive rehabilitative services. In the same year, the Company expanded its continuum of services, becoming a substantial participant in the diagnostic market. 1995 The outpatient division grew by more than 250 facilities to over 500 locations in the US. HealthSouth became the nation's largest provider of outpatient surgical services with 126 locations throughout the country. Work commenced on the $4 million HealthSouth Sports Medicine Center at the Colorado Springs Olympic Complex, where Olympic hopefuls will receive the most advanced training and sports medicine care available anywhere in the world. HealthSouth announced nearly $2.5 billion in acquisitions that would - when completed - give the company more than 850 facilities across the country and more than 32,000 professional and clinical employees. 1996 Development efforts continued, resulting in a national network of nearly 700 outpatient facilities. With a nationwide system including diagnostic services, outpatient surgery, and inpatient and outpatient rehabilitation services, the Integrated Service Model (ISM) became a reality. 1997 HealthSouth moved into its new corporate headquarters at One HealthSouth Parkway in Birmingham, Alabama. HealthSouth acquired Horizon/CMS Healthcare Corporation in Albuquerque, N.M.—the country's second largest operator of rehabilitation hospitals—which included 30 inpatient rehabilitation facilities and approximately 275 outpatient rehabilitation locations. The company also purchased ASC Network Corporation, the nation's second-largest independent operator of outpatient surgery centers, and Health Images Inc., which added 55 imaging centers, including six in the United Kingdom. HealthSouth made its first Australian venture with the acquisition of Cedar Court Physical Rehabilitation Hospital, a 71-bed facility in Melbourne. 1998 HealthSouth continued expansion by purchasing more than 30 ambulatory surgery centers from Columbia/HCA Healthcare Corporation, and acquiring National Surgery Centers Inc.'s 40 outpatient surgery centers in 14 states. Facility openings included the 90,607-square-foot Kerlan-Jobe Integrated Medical Plaza in Los Angeles, and the 60,000-square-foot HealthSouth Integrated Medical Plaza of Pecan Valley in San Antonio, Texas, which is considered the prototype IMP and houses diagnostic, occupational medicine, outpatient rehabilitation and surgery services. The company opened a 17-bed rehabilitation unit at University Hospital in Rio P'edras, Puerto Rico, near San Juan--the first of its kind in that country. 1999 HealthSouth became the official healthcare provider for the PGA Tour and Senior PGA Tour on January 25, 1999. The company provided full-time rehabilitative and preventive care at most PGA Tour and Senior PGA Tour events, as well as personal conditioning programs for the players. The company announced plans to invest $1 billion in capital expenditures and related items over the next three to five years in areas such as technology updates, facility upgrades, maintenance and expansion, and improvements to management information, collection and billing systems. In addition, HealthSouth would increase the rate of development for new surgery centers and Integrated Medical Plazas, as well as explore acquisition opportunities in outpatient services and expand the company's Internet presence. Also included in the initiative was the rollout of the HealthSouth Clinical Automation Program (HCAP). HealthSouth consolidated the management of all outpatient-related lines of business in September, enabling the company to better integrate its services in major markets. Regional and local market leaders were established to oversee operations, development and managed care activities, which allows the company to respond more quickly to new opportunities in local markets and ensure that it remains in touch with the particular needs of each market.
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