HealthSouth Corporation provided preliminary comments on President Obama's budget proposal released by the Office of Management and Budget on February 26, 2009.

  --  HealthSouth has been a leader in advocating policy aimed at
      eliminating barriers within Medicare's current fragmented post-acute
      care system and the inefficiencies created by those barriers, so that
      we can provide high quality, cost effective care to patients who need
      it.
  --  The President's proposal to "bundle" post-acute care services may
      offer real potential to improve Medicare's post-acute care system; if
      done appropriately and carefully, it could result in improved patient
      care.
  --  We believe further research and study is appropriate and necessary.
      The Centers for Medicare & Medicaid Services ("CMS") is in the process
      of conducting multiple studies and research in these areas and we
      support these research initiatives.
  --  The details, structure, and timing of the budget proposal are still
      largely unknown, but we do know the proposal would need Congressional
      approval. Moreover, it would be extremely important to guarantee that
      appropriate safeguards are put in place to ensure that payment dollars
      are allocated to the actual providers of quality post-acute care. To
      do otherwise would be problematic, both for healthcare providers and
      patients who need the services.
  --  We look forward to working with the Administration, Congress, and the
      acute hospital and post-acute care provider communities on this
      important issue.  As the nation's leading provider of comprehensive
      rehabilitative healthcare services, HealthSouth looks forward to
      offering insights on the current fragmented and inefficient post-acute
      care system that, in many instances, constrains providers from
      offering comprehensive post-acute care and services to all patients
      who would benefit from such care.

HealthSouth will host a conference call at 9:30 a.m. EST on Monday, March 2, 2009, to share its thoughts on the Obama Administration Budget Proposal. The conference call may be accessed by dialing (866) 406-5369 and giving the pass code 88096717. International callers should dial (973) 582-2847 and give the same pass code. Please call approximately 10 minutes before the start of the call to ensure you are connected. The conference call will also be webcast live and will be available at http://investor.healthsouth.com/ by clicking on an available link.

  Media Contact
  Andy Brimmer, 205-410-2777
  Investor Relations Contact
  Mary Ann Arico, 205-969-6175
  maryann.arico@healthsouth.com

First Call Analyst:
FCMN Contact:

SOURCE: HealthSouth Corporation