Posted on 11/26/2002 9:57:44 AM PST by Willie Green
For education and discussion only. Not for commercial use.
BIRMINGHAM, Ala. (AP) — HealthSouth Corp. said Tuesday it would cut as much as 2 percent of its work force to save money because of Medicare changes that were cited for a sharp reduction in earnings.
A company statement did not say exactly how many jobs would be slashed, and calls to its Birmingham headquarters went unanswered early Tuesday. But the company on its Web site said it has more than 50,000 employees nationwide. A 2 percent cut from that figure would represent 1,000 jobs.
HealthSouth is the largest U.S. provider of outpatient surgery, diagnostic imaging and rehabilitation services. It has about 1,800 locations in all 50 states and Puerto Rico, Britian, Australia, Saudi Arabia and Canada.
Numerous shareholder lawsuits have been filed since HealthSouth announced in August that Medicare changes in billing rules would reduce profits by $175 million. The Securities and Exchange Commission is investigating.
HealthSouth stock, which sold for as much as $15.90 a share in the last year, closed down 25 cents Monday at $4.02 on the New York Stock Exchange.
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