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HealthSouth Reports Results for Fourth Quarter Ended December 31, 2007
Date:2/25/2008

Hospital Revenues and Discharges Increase

Total Debt Reduced

BIRMINGHAM, Ala., Feb. 25 /PRNewswire-FirstCall/ -- HealthSouth Corporation (NYSE: HLS) (the "Company") today reported its results of operations for the fourth quarter ended December 31, 2007. Compared to the fourth quarter of 2006, net operating revenues from the Company's inpatient rehabilitation hospitals increased by 4.6% and discharges increased by 0.9%.

"We are pleased with the results of the fourth quarter: volumes were up quarter over quarter and sequentially, despite headwinds resulting from the 75% Rule; we were successful in an industry-wide effort to permanently modify this Rule, thereby improving the predictability of our business; unit pricing increased as we continued to treat higher acuity patients; and we were able to manage our costs in a strategic manner," said Jay Grinney, President and Chief Executive Officer of HealthSouth. "2007 marked the end of the turn-around at HealthSouth. We have sold all non-core business units, completed all settlement payments with government entities, significantly reduced our long- term debt, and repositioned ourselves as a leader in the post-acute sector. We now look forward to a new era where we will focus on enhancing our position as the nation's preeminent provider of inpatient rehabilitative care."

Net Operating Revenues

Consolidated net operating revenues for the fourth quarter of 2007 were $439.0 million, a $16.2 million, or 3.8%, increase from the same quarter of 2006. Net operating revenues from our inpatient hospitals were $392.5 million, representing a 4.6% increase over the same quarter of 2006. This increase was primarily attributable to an incre
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SOURCE HealthSouth Corporation
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