Post-acute healthcare includes rehabilitation or palliative services that beneficiaries receive after, or in some cases instead of, a stay in an acute care hospital. (MedPAC, 2017) The services HealthSouth offers range from home nursing, personal care, childcare, allied health services or home health care. HealthSouth Corporation publicly traded and is one of the nation’s largest providers of post-acute healthcare services. (Hamilton, 2012) HealthSouth was involved in a corporate accounting scandal in which its founder, chairman, and chief executive officer, Richard M. Scrushy, was accused of directing company employees to falsely report, grossly exaggerating company earnings in order to meet stockholder expectations. Richard Scrushy allegedly told his underlings to make up numbers and transactions during the years of 1996 to 2003. HealthSouth caught the attention of U.S. Securities and Exchange Commission in late 2002 after CEO Richard M. Scrushy sold $75 million in stock several days before the company posted a large loss. In March 2003, Scrushy was investigated and charged with accounting fraud. In June 2005, Scrushy was acquitted on 36 accounting fraud counts against him, including violation of the Sarbanes-Oxley Act, an act to protect investors by improving the accuracy and reliability of corporate discourse made pursuant to the securities laws, and for other purposes. (Office, 2017) Although …show more content…
Jordan and Mr. Collins are putting their company at risk. In the casual manner both owners asked for the data to be manipulated, I can guarantee this has happened many times before at this company. Manipulating data and titling it ‘research license’ is a way for the owners to excuse their immoral behavior. As stated in The Leadership Challenge, “Trust is a strong, significant predictor of employee satisfaction, the quality of communication, honest sharing of information, acceptance of change, acceptance of the leader’s influence, and team organizational performance.” It goes on to state, “Trust is also linked to profitability. High-trust organization have been show to outperform low-trust organizations by 286 percent.” (Kouzes & Posner, 2012) That being said, Ms. Jordan and Mr. Collins actions can cause great harm to their organization. At a minimum, requiring their staff, both the research analyst and coordinator, to manipulate data could have a negative effect on employee satisfaction. The stress of knowing you are required to lie can be impactful on the employee’s psyche. If you cannot have faith in your supervisor to provide truthful information, how can you trust your organization. Not only are Mr. Jordan and Mr. Collins breeding a toxic work environment, they are also putting their company at risk. Eventually the word will spread and the truth will reveal itself, the company’s profits may take a hit, but it may also