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HealthSouth to sell rehabilitation clinics

From the Associated Press

HealthSouth Corp. said it would sell about 600 outpatient rehabilitation centers in 35 states to privately held Select Medical Corp. for about $245 million as it proceeded to focus solely on post-acute care while recovering from a $2.7-billion accounting scandal.

HealthSouth is shedding a division that once formed the most visible part of its business and helped make it the nation’s largest rehabilitation chain.

Chief Executive Jay Grinney said Birmingham, Ala.-based HealthSouth was selling its outpatient rehabilitation division to reduce its long-term debt. Select Medical, based in Mechanicsburg, Pa., purchased the rehabilitation centers at auction.

HealthSouth shares rose 92 cents, or 4.2%, to $22.62.

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