Healthsouth Case : The Healthsouth Scandal Essay

2186 Words Dec 2nd, 2014 9 Pages
HealthSouth was what seemed to be an ordinary striving medical business. Some would even say it was the most successful in its field , but unlike other corporations, it had a foul secret. All the grand success that HealthSouth was known for was a lie, a mask to hide what was going on behind the scene, hidden from the public eye. A secret so well hidden, that it went unnoticed for years. A secret so large it broke not only the law but several accounting principles. It was the rise and fall of the largest and most victorious corporation in the Health Care Corporate Field; the HealthSouth scandal. During the years 1996 to 2003 it was proven that the American corporation HealthSouth led by its CEO, Richard Scrushy, inflated and created more than 4.6 billion dollars , to meet stockholders expectations. HealthSouth allegedly told élite employees to invent numbers and transactions for its financial statements over the course of a number of years . However, the corporation was caught by selling 75 million dollars in shares a day before the company experienced a huge loss, catching the attention of U.S. Securities and Exchange Commission (SEC) . A company which was known for its ambulatory surgery and rehabilitative health care services throughout the United States fabrics one of the most inconspicuous false impressions known to the corporate world. Carefully using deceptions of the Generally Accepted Accounting Principles (GAAP) such as materiality, conservatism, and reliability,…

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