Exhibit 21

                  HEALTHSOUTH TO ACQUIRE SUTTER SURGERY CENTERS

BIRMINGHAM,  Ala. ...  HEALTHSOUTH  Corporation  (NYSE:  HRC) and Sutter Surgery
Centers, Inc., based in Sacramento,  Calif.,  announced today they have signed a
definitive  agreement  under  which  HEALTHSOUTH  will  acquire  Sutter  Surgery
Centers.

         HEALTHSOUTH currently operates 43 outpatient surgery centers and is the
nation's largest provider of outpatient and rehabilitative  healthcare services,
with more than 500 locations in 38 states.  Sutter Surgery Centers is one of the
largest  independent  operators of outpatient surgery centers in the US, with 12
surgery centers located throughout California, Utah and Arizona.

         Under the terms of the agreement,  all shares of common stock of Sutter
Surgery  Centers  will be  exchanged  for  shares of  HEALTHSOUTH  common  stock
pursuant  to an  exchange  ratio that will yield an  approximate  value of $38.0
million to the shareholders of Sutter Surgery Centers. The transaction will be a
tax-free event to the  shareholders of each company,  will be accounted for as a
pooling of interests, and is expected to be accretive to earnings.

         Richard  M.  Scrushy,  HEALTHSOUTH's  Chairman  of the  Board and Chief
Executive  Officer,  said, "We are excited about the opportunity to increase our
presence in the outpatient  surgery area. This transaction allows HEALTHSOUTH to
continue  implementing our Integrated Service Model,  which combines  outpatient
surgical  centers with both inpatient and outpatient  rehabilitation  facilities
and offers both  patients and payors the benefits  that only such an  integrated
system can provide.  We are confident that these facilities will be an important
component  in our network  going  forward,  and we look  forward to working with
them."

         This  transaction  marks  HEALTHSOUTH's  second  surgery center company
acquisition,  bringing  the  total  number  of such  facilities  open  or  under
development to more than 55. In June,  HEALTHSOUTH  completed the acquisition of
Surgical Health Corporation,  an Atlanta-based operator of 36 outpatient surgery
centers located in 11 states.  At the time of the  acquisition,  Surgical Health
Corporation was the nation's second largest  independent  operator of outpatient
surgery centers.

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     For more information, contact Richard M. Scrushy, Chairman & CEO; Aaron
  Beam, Jr., Executive Vice President & CFO; or Michael D. Martin, Senior Vice
                    President & Treasurer at 205 967 7116