Introduction HealthSouth is one of the nation’s largest healthcare providers specializing in rehabilitation. HealthSouth was founded by Richard M. Scrushy in 1984 and went public in 1986. Scrushy served as its Chairman of the Board from 1994 to 2002. The company was incorporated in January 1984 as Amcare Inc. before its name was changed to HealthSouth Rehabilitation Corporation in May 1985. In January of 2003, Mr. Scrushy reassumed the position of CEO. HealthSouth grew rapidly during the 1980’s and 1990’s. This growth was largely due to acquisitions. HealthSouth owned more than 330 hospitals worldwide. It was also during this time that Scrushy became known as one of the highest paid CEOs in the United States. The HealthSouth business model stresses four basic steps from diagnosis to rehabilitation and this model served as its mark of distinction among other healthcare providers (Jennings, 2012, p. 183). From 1987 through 1997 HealthSouth’s stock rose 31 percent per year and Mr. Scrushy told analysts that HealthSouth had matched or exceeded earnings for forty-seven quarters in a row (Jennings, 2012, p. 183-184). Problems at HealthSouth were being uncovered in 2002. In early 2002, Scrushy sold over $75 million dollars worth of stock and an additional $25 million back to HealthSouth. It was also disclosed in August of 2002 that a new Medicare payment policy would greatly lower reimbursements and consequently the stock would lose more than half of its value. Shareholder lawsuits were filed alleging that Scrushy acted on insider information when selling his shares of stock earlier in the year. Most of Scrushy’s alleged misconduct occurred prior to the enactment of Sarbanes-Oxley (SOX). To sum... ... middle of paper ... ....proquest.com/docview/216236868?accountid=28180 Lublin, J. S., & Carrns, A. (2003, April 11). Directors had lucrative links at HealthSouth. Wall Street Journal. p. B1. Retrieved from: http://search.proquest.com.proxy1.ncu.edu/docview/398944990?accountid=28180 Mokhiber, R. (2003). Ill feelings at HealthSouth. Multinational Monitor, 24(11), 7-8. Retrieved from: http://search.proquest.com/docview/208878914?accountid=28180 Solieri, S., Felo, A. & Hodowanitz, J. (2008). Richard Scrushy - The rise and fall of the king of healthcare. p. 337-353. Retrieved from: http://www.soliericpas.com/attachments/2008MarRichardScrushy-TheRise&FalloftheKingofHealthcare.pdf Weld, L. G., Bergevin, P. M., & Magrath, L. (2004). Anatomy of a financial fraud. The CPA Journal, 74(10), 44-49. Retrieved from: http://search.proquest.com/docview/212312866?accountid=28180
...and his vision in successfully transforming the medical center to a tertiary care facility. However, in 2008 under Ron Henderson, the medical center expenses began to skyrocket and revenues failed to keep up. Also, a hospital census indicated that, on average, Medicare patients consisted of 58% and Medicaid patients consisted of 18% which caused the medical center to suffer from reductions in reimbursements. Although noted by solid evidence that utilization was experiencing a steep decline, Mr. Henderson added 127 new positions to the medical center. In 2009, Mr. Henderson was fired after the board of trustees realized that this financial bind of an $8.6 million deficit was caused by Mr. Henderson. In order for the new CEO, Richard Reynolds, to succeed at his new job title, he must create a benchmarking process adopting certain goals to remain a worthy competitor.
Starting 2015 with a new appointed Director John F Koster and Todd Smith as the Chairman; in the same month of January, Sutter Health contracted a two-year agreement with Blue Shield of California. This opportunity provides the organization a future of new patients that can have access to the doctors and care centers from Sutter Health (Sutter Health, 2015).
Scott Schmidly serves as President and CEO of St. Joseph’s Hospital. He was Chief Operating Officer and Ethics and Compliance Officer at Medical City Dallas Hospital and Medical City Children’s Hospital since 2007.
Honor Health is a hospital and physician provider system located in phoenix Arizona. Honor health is relatively new hospital chain, more specifically it is the result of a merger of Scottsdale hospital and the John C. Lincoln Health Network (Alltucker, 2013). Honor Health’s mission statement is relatively short, comprising only a single sentence. Their mission and vision statements are, “To improve the health and well-being of those we serve” and, “To be the partner of choice as we transform healthcare for our communities” (Honor Health, 2015). While their vision and mission statements impart a direction and goal for their organization, the vagueness of both statements may cause problems in guiding targeted strategic initiatives. This essay
The company has several locations within the community and also has it IT operations based out of the city. As the Baby Boomer population hits retirement age (approximately 10,000/day) and due to the more medical complex patients we are seeing, it will give rise to more volume in the healthcare industry in the near future ("Are Medicare Patients," 2012). In our current market approximately 1000 patients per year come onto Medicare based on out Dixon Hughes data that note a 1.87% (CAGAR) or compounded annual growth rate.
Investor's, B. D. (2014, Janurary 8). Health Reform Wal-Mart's Way. Investors Business Daiky, p. A14.
Davidson, Stephen M. Still Broken: Understanding the U.S. Health Care System. Stanford, CA: Stanford Business, 2010. Print.
The rise of Enron took ten years, and the fall only took twenty days. Enron’s fall cost its investors $35,948,344,993.501, and forced the government to intervene by passing the Sarbanes-Oxley Act (SOX) 2 in 2002. SOX was put in place as a safeguard against fraud by making executives personally responsible for any fraudulent activity, as well as making audits and financial checks more frequent and rigorous. As a result, SOX allows investors to feel more at ease, knowing that it is highly unlikely something like the Enron scandal will occur again. SOX is a protective act that is greatly beneficial to corporate America and to its investors.
Healthcare services have been on the rise for over 10 years now. According to a 2012 consumer alert, the industry provided $2.26 trillion in payments for more than four billion health insurance benefit claims in the year 2011(Fraud in Health Care). The bulk of the claims and the mainstream of fraud and abuse stem from the Medicare system professionals, who are knowledgeable about the process and persuade new clients into handing over their pertinent information in hopes of deception and illegitimate claims. Multiple and double billing, fraudulent prescriptions, are some of the major flaws in this organization that has made the healthcare services industry curdle. (AGHAEGBUNA, 2011) This is a non-violet crime and is often committed by very educated people including business people, hospital, doctors, and administrators.
HealthSouth is a large healthcare company with many rehabilitative-type as well as outpatient facilities across the U.S. The company was involved in a major corporate accounting fraud scandal around 2003-2004. HealthSouth’s founder, Richard Scrushy, was indicted for using corrupt accounting practices and forcing others to alter books and overstate earnings. Scrushy’s fraudulent activities total in value up to as much as $4.6 billion. According to Walter Pavlo of Forbes, “CEO Richard Scrushy was the first executive to be tried under the Sarbanes-Oxley Act for cooking the books” (2012). While many involved served prison time, Scrushy was acquitted of the accounting fraud, only to later serve time in jail for politically-related charges (Pavlo
Banner Health is a nonprofit organization that consists of twenty-four acute care hospitals and health care facilities in seven different states. In 1999, Samaritan Health System merged together with Lutheran Health Systems to form what is currently known as Banner Health. This organization prioritizes their aim to make a difference in their patients’ lives by providing exceptional patient care. Banner Health utilizes music therapy, massage therapy, aromatherapy, and pet therapy as an integral part of the healing process for their patients. They also offer specialized care through various types of services such as Alzheimer’s Care, Cancer Care, and Emergency Care. Banner Health is involved in certain programs that will help in the future, experienced network growth, has a diverse staff, and efficiently employs their resources.
HealthSouth is A Public company who is providing outpatient rehabilitation services, They noticed that the business is not that great as they proclaimed, business is not so profitable and it also have too much expenses which this will end up taking away from the profit and they will show lower earnings that expected so they came up with a fraudulent idea to create false entries in their books by claiming that the expenses they have is not real expenses, they called it investing like everyone understands when a business is buying a building its not called a expenses which will show the business less profitable ,it is the opposite the business is growing, the same think they did with entering regular expenses like payroll or utility expenses
In this case study, the focus is on Community Health managed by (HMO). HMO serves multiple states, and the region where membership growth in Community Health has been lackluster is the east city region. Despite economic disparities and hardship, a commitment to expand its primary care services to Fair-town, a suburban area of the east city region. This is mostly due to the opening in clinics serviced by Community Health in the area. Fair- town is a suburban area growing in population, and the target of Community Health has set a goal of 3,000 to 6,000 thousand new members over the next two years after the completion of the Fair-town Clinic.
Healthcare managers are now accountable to profit-oriented boards. The accountability of healthcare involves corporate management, shareholders, and the investment community (Maddox, 1998 December). Ensuring the needs of stockholders to see an adequate profit share requires distributive justice. Maddox (1998 December) explains that distributive justice requires that all individuals are provided an equal opportunity to access scarce resources, which requires healthcare organizations and health plans to provide healthcare to each individual that is due. There is a careful balancing act in healthcare while trying to retain earnings and provide access to quality care for all
Rose Hoban notes that according to Kevin Schulman, director of health sector management at the Fuqua School of Business, there little evidence that mergers result in substantial changes on the ground in terms of service provisions (2013). She also notes that David Dranove of the Walter McNerney Professor of Health Industry Management at Northwestern University’s Kellogg School of Management share a similar perspective. Dranove suggests that the result is that the people end up with organizations that have accumulated market power but haven’t really changed the way health care is