Richard M. Scrushy

Scrushy met regularly with HealthSouth’s executive and told them to artificially inflate its earnings to meet or exceed Wall Street analysts’ expectations and maintain the market price of its stock. SEC found out that each quarter, the senior officers would present Mr. Scrushy the actual but as yet unreported earnings for the quarter as compared to Wall Street’s expected earnings. If the actual result not meet Wall Street’s expectations, Mr. Scrushy would tell the management to “fix it” by manipulate the earning to make up the shortfall in the ‘family’ meetings. The attendees were known as the ‘family’, who is mainly HealthSouth’s senior accounting personnel that responsible to discuss what false accounting entries could be made and recorded to meet the goals (Henselmann & Hormann…

In 1984 Richard Scrushy founded HealthSouth, Inc., a chain of orthopedic hospitals and outpatient centers. His company grew quickly over the next 12 years achieving a market value of $12 billion. In the 1990s the government began awarding hospitals like HealthSouth with huge healthcare subsidies. Scrushy saw this as an opportunity and he used this source of revenue to finance acquisitions of various competing companies. Scrushy’s acquisition strategy was aggressive in that he began acquiring…

Influence The leadership by HealthSouth’s founder and former leader, Richard Scrushy, shows a pseudo-transformational style that idealizes power and position even at the expense of their followers’ achievements (Bass & Steidlmeier, 1999). Pseudo-transformational idealized leaders see themselves as honest and committed to their…

In the beginning of this chapter we are told that Schlichtmann ignored the Woburn case and focused on his busy life. He and Conway are still with Reed & Mulligan up until the case with a hotel fire, where Reed took all credit. Schlichtmann, Conway, and Crowley made their own firm aptly named Schlichtmann, Conway & Crowley. Schlichtmann, was obviously a very wealthy man and he was not afraid to show it. He did not want small cases, instead he wanted to deal with cases that promised great rewards…

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…

HealthSouth’s governance had many major flaws in their governance. The ones that stood out to me were, first, they lacked a strong ethical environment. Employees either lacked the courage to report financial manipulation or they lacked ethical awareness. This culture allowed HealthSouth’s CEO Richard Scrushy to do as he chose without any opposition. Second HealthSouth’s accountants did not fully understand their professional duty and could not convince the CEO that what they were doing was…

Richard Scrushy, the former CEO of HealthSouth was corrupt form the beginning. Although he appeared to have altruistic views, that wasn’t the case. The meteoric rise of HealthSouth came about with the rapid influx of baby boomers coming into middle age and older. This required more facilities which Scrushy happily provided through franchising. After starting HealthSouth (AmCare), he took it public two years later. He was motivated by the vast amounts of money from meeting Wall Street’s…

In 1984, Richard Scrushy, an ex-respiratory technician started his own business, the initial national chain of orthopedic hospitals and outpatient centers in the United States called HealthSouth[x1]. Later in 1996, the company was found out perpetrated by its executives of accounting fraud around 2.7 billion US dollars behind the fast growth during the years. This is due to the demand of increasing the stock price and meeting analyst expectations that unintentionally put the pressures on the…

Walking into the theatre space at the Jewish Community center in Louisville felt very like entering a high school gym doubling as a playing space. It was Mach 16th, the opening night of Center Stage’s production of Disney and Cameron Mackintosh’s musical Mary Poppins. The musical was based on the stories of P. L. travers and the Walt Disney film, with original music and lyrics by Richard M. Sherman and Robert B. Sherman. The book was written by Julian Fellows, and new songs and additional music…

HELP DESK MANAGEMENT 1. For Internal use- outline the ways of dealing with the problem as a Helpdesk Manager/ service Centre Manager:- There are continuous calls and they are usually very simple. There are clients who does not know where is the information in user manual There are clients who forgot their password There are clients who operates night shift and they need to have access at night Number of incoming calls are 150-180 per day among 6 x account managers Number of outgoing calls…