HealthSouth to sell rehabilitation clinics
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.