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HealthSouth Reports Results for Fourth Quarter Ended December 31, 2007

patient division, including corporate overhead. Our condensed consolidated results of operations include overhead costs associated with managing and providing shared services to our surgery centers, outpatient, and diagnostic divisions, even though these divisions qualify as discontinued operations.

The Company expects to file its Form 10-K for the year ended December 31, 2007 this week. When filed, the report can be found on the SEC's website at The information in this press release is summarized and should be read in conjunction with the Form 10-K for the year ended December 31, 2007, when filed.

HealthSouth Corporation and Subsidiaries

Condensed Consolidated Statements of Operations


(In Millions)

Three Months Ended Year Ended

December 31, December 31,

2007 2006 2007 2006

Net operating revenues $439.0 $422.8 $1,752.5 $1,711.6

Operating expenses:

Salaries and benefits 227.1 212.1 869.1 824.4

Other operating expenses 48.0 50.1 243.3 225.5

General and administrative expenses 27.7 36.9 134.8 144.5

Supplies 25.6 25.4 100.7 100.9

Depreciation and amortization 19.7 23.5 77.5 86.8

Impairment of long-lived assets - 9.7 15.1 9.7

Recovery of amounts due from Richard

M. Scrushy - (12.8) - (47.8)

Occupancy costs 13.9 14.6 52.4 54.5

Provision for doubtful accounts 7.8 19.7 34

SOURCE HealthSouth Corporation
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