HealthSouth Corporation (OTC Pink Sheets: HLSH) issued the following statement on the passage of the budget reconciliation bill in the U.S. House of Representatives earlier today. The final bill includes language that slows the implementation of the 75% Rule, providing an additional year at the current 60% threshold level. The 75% Rule is a Centers for Medicare and Medicaid Services (CMS) rule which limits the types of conditions that can be treated in an inpatient rehabilitation setting.

"We are pleased that Congress has acted to extend the phase-in period for the 75% Rule. The extra year will allow time to assess the effects of the 75% Rule and to conduct additional clinical research to better define the types of patients and medical conditions that require the level of treatment furnished by inpatient rehabilitation hospitals," said HealthSouth President and CEO Jay Grinney.

"We believe an important focus of the research should be the suitability of inpatient rehabilitative care for other medical conditions, including certain cardiac and pulmonary conditions, with attention given to patients' functional status," Grinney continued. "HealthSouth will continue its commitment to research with academic and other partners and we hope that CMS will join in pursuing a thoughtful and evidence-based reevaluation of the Rule."

About HealthSouth

HealthSouth is one of the nation's largest providers of outpatient surgery, diagnostic imaging and rehabilitative healthcare services, operating facilities nationwide. HealthSouth can be found on the Web at www.healthsouth.com.

Media Contact

Andy Brimmer, 205-410-2777

SOURCE: HealthSouth Corporation