Exhibit 21
                                                                      

                                                           FOR IMMEDIATE RELEASE
                                                                October 10, 1995

                HEALTHSOUTH ANNOUNCES $1.2 BILLION ACQUISITION OF
                         SURGICAL CARE AFFILIATES, INC.


BIRMINGHAM,  Ala . . . HEALTHSOUTH  Corporation  (NYSE: HRC) announced today the
signing of a definitive  agreement to acquire  Surgical  Care  Affiliates,  Inc.
(NYSE: SCA). The proposed  transaction with SCA would add 67 surgery centers and
an additional 10 under  development or  construction.  HEALTHSOUTH's  network of
surgery  centers will total 55 upon  completion  of the pending  acquisition  of
Sutter Surgery  Centers,  Inc.,  making  HEALTHSOUTH  the largest surgery center
company in the United States.  The value of this  transaction  is  approximately
$1.2 billion.

Under the terms of the agreement,  which has been approved by the boards of both
companies,  each share of common stock of SCA will be exchanged  for 1.22 shares
of HEALTHSOUTH  common stock. If  HEALTHSOUTH's  common stock rises above $28 or
falls below $22 per share,  the exchange ratio is subject to  adjustment.  It is
anticipated  that the transaction  will be tax-free to SCA stockholders and will
be accounted for as a pooling of interests. The transaction, which is subject to
approval by the  stockholders of both  companies,  is expected to close in early
1996.

Richard M.  Scrushy,  HEALTHSOUTH's  Chairman  of the Board and Chief  Executive
Officer, said, "With this transaction, HEALTHSOUTH has established itself as the
leading  provider of  outpatient  healthcare  services in the United States with
almost 600  locations  in 42 states.  SCA has always been  recognized  as having
quality surgical facilities.  Given the fact that HEALTHSOUTH's rehabilitation
facilities  and SCA's  centers  overlap in nearly 70% of SCA's  markets,  adding
these  facilities to our network and eliminating  duplicative  costs will enable
the combined  network of facilities to offer managed care,  insurance  companies
and  other  payors a more  cost-effective  and  efficient  integrated  system of
healthcare delivery. We expect this transaction to be accretive to 1996 earnings
per share."

Joel C.  Gordon,  Chairman  of the  Board and Chief  Executive  Officer  of SCA,
stated,  "SCA is particularly  pleased to be joining with  HEALTHSOUTH to create
the largest  outpatient  healthcare  services  company in the  country.  We look
forward to working together to continue



to provide  low cost  healthcare  services  to all  payors.  The  management  of
Surgical Care considers this an excellent  opportunity  for its  stockholders to
participate  in the strong growth of outpatient  services that lies ahead in the
new healthcare environment."

After the proposed  transaction,  HEALTHSOUTH  will have a  healthcare  delivery
network of  approximately  600  facilities  in 42 states,  including 122 surgery
centers, 400 outpatient rehabilitation  facilities, 77 rehabilitation hospitals,
and five medical centers.  This transaction is subject to various regulatory and
governmental reviews, including clearance under the Hart-Scott-Rodino Antitrust
Improvements Act.

Smith Barney Inc. is acting as financial advisor to HEALTHSOUTH.

                                     #######

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