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HEALTHSOUTH Announces Management Changes

HEALTHSOUTH Corporation today announced several changes in senior management positions. James P. Bennett, President and Chief Operating Officer of HEALTHSOUTH, has resigned his position in order to pursue other opportunities and spend more time with his family. Richard M. Scrushy, Chairman of the Board and Chief Executive Officer, said that HEALTHSOUTH's three division presidents would report directly to him while the company evaluated both internal and external candidates for the Chief Operating Officer position. Bennett will continue to work with the company to transition his responsibilities over the near term.

Scrushy stated, "Jim Bennett has been instrumental in the successful operational integration of our major acquisitions over the last several years. He has worked tirelessly for HEALTHSOUTH, and we are sorry to see him go. However, we understand Jim's desire to catch up with his family after his efforts here, and his desire to use his talents in a more entrepreneurial setting. We look forward to opportunities to work with Jim in his new endeavors. In the meantime, I will assume full responsibility for our operations with the help of our outstanding division presidents, while we look at a number of impressive COO candidates from inside HEALTHSOUTH as well as from other companies."

"My experience with HEALTHSOUTH has been more rewarding than I could have imagined," added Bennett. "However, while this has been a hard decision to make, I believe that now is the time for me to make a change. A few months ago, I had a serious accident that kept me away from the office for a protracted period and gave me the chance to think long and hard about my goals and about my family priorities. Richard and I have identified a number of entrepreneurial opportunities arising within HEALTHSOUTH, and I want to explore some of those possibilities after I have had a chance to catch my breath and spend some family time. I look forward to making this a smooth transition, and I am confident that HEALTHSOUTH's operations will be in good hands."

HEALTHSOUTH also announced that P. Daryl Brown, currently President of HEALTHSOUTH's Ambulatory Services - East division, would leave that role to assume responsibility for the commercial development of HEALTHSOUTH's wireless hand-held clinical information system, currently known as "HCAP" (HEALTHSOUTH Clinical Automation Program). Larry D. Taylor, currently Senior Vice President in the Ambulatory Services - East division, will become President of the division.

"We have said for some time that we believe that HCAP has great commercial potential as the platform for a stand-alone company in which HEALTHSOUTH will retain a major investment position," said Scrushy. "I have chosen Daryl to lead the growth of this new company because of his outstanding track record since his early days here, and because of his skills at building and motivating a strong, aggressive management team. We believe that he is the perfect choice to lead the expansion of the HCAP system to other users, and we are very pleased that he has agreed to step up to the plate to build . HEALTHSOUTH has already installed HCAP in more than 300 facilities, where it provides a wireless charting and charge capture system to our outpatient rehabilitation operations. We plan to roll HCAP out to all HEALTHSOUTH outpatient facilities."

Scrushy added, "Larry Taylor has been with HEALTHSOUTH for 13 years, holding every operations position from facility administrator to Senior Vice President. He is one of our most respected operations leaders across all of our ambulatory lines of business, and moving him to this new role is a natural step. Today's moves once again reflect the depth of HEALTHSOUTH's talent, and create new opportunities for some of our mid-level operations managers to grow to meet new challenges."

HEALTHSOUTH will announce its results of operations for the quarter and six months ended June 30, 2000 on Tuesday, July 18.

HEALTHSOUTH is the nation's largest provider of outpatient surgery and rehabilitative healthcare services, with over 2,000 locations in all 50 states, the United Kingdom, Australia and Puerto Rico. HEALTHSOUTH can be found on the Web at

Statements contained in this press release which are not historical facts are forward-looking statements. Without limiting the generality of the preceding statement, all statements in this press release concerning or relating to estimated and projected earnings, margins, costs, expenditures, cash flows, growth rates and financial results are forward-looking statements. In addition, HEALTHSOUTH, through its senior management, may from time to time make forward-looking public statements concerning the matters described herein. Such forward-looking statements are necessarily estimates reflecting the best judgment of HEALTHSOUTH's senior management based upon current information, involve a number of risks and uncertainties and are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. HEALTHSOUTH's actual results may differ materially from the results anticipated in these forward-looking statements as a result of a variety of factors, including those identified in this press release and in the public filings made by HEALTHSOUTH with the Securities and Exchange Commission, including HEALTHSOUTH's Annual Report on Form 10-K for the year ended December 31, 1999 and its Quarterly Reports on Form 10-Q, and forward- looking statements contained in this press release or in other public statements of HEALTHSOUTH or its senior management should be considered in light of those factors. There can be no assurance that such factors or other factors will not affect the accuracy of such forward-looking statements.

For more information, contact Richard M. Scrushy, Chairman & CEO, or

Tadd McVay, Senior Vice President and Treasurer, at 205-967-7116


Contact: Richard M. Scrushy, Chairman & CEO, or Tadd McVay, Senior Vice
President and Treasurer, 205-967-7116, both of HEALTHSOUTH Corporation