EXHIBIT 99
TEXT OF "HEALTHSOUTH INVESTOR MESSENGER" NEWSLETTER
RELEASED ON OR ABOUT NOVEMBER 25, 2002
HEALTHSOUTH INVESTOR MESSENGER
VOLUME 1, ISSUE 1
FROM HEALTHSOUTH'S CORPORATE OFFICES
MONDAY, NOV. 25, 2002
THIRD QUARTER EARNINGS ANNOUNCED
HealthSouth Corporation has announced operating results for the third quarter
and the nine- month period that ended on Sept. 30, 2002, with revenues up 3
percent from the same period during 2001 and totaling $1.094 billion for the
latest quarter.
Net income for the 2002 third quarter was $53.6 million, a decrease of 32
percent, compared to net income of $79.1 million in the same quarter during
2001. Earnings per share (assuming dilution) were $0.13 for the 2002 quarter, a
decrease of 35 percent, compared to earnings per share of $0.20 in the same 2001
quarter.
Earnings per share for the 2002 quarter included the effects of a one-time
pretax gain of about $25 million on early extinguishment of debt, relating to
HealthSouth's repurchase of more than $440 million of its public debt in the
quarter. Operating earnings for the third quarter, excluding the one-time gain,
were $38.3 million, or $0.10 per share (assuming dilution).
For the nine months ended Sept. 30, 2002, HealthSouth's revenues were $3.387
billion, compared to $3.265 billion for the 2001 period. Net income was $135.7
million, compared to $134.5 million for the 2001 period.
Earnings per share (assuming dilution) were $0.34 for the 2002 period, compared
to $0.34 for the same period in 2001. Operating earnings for the 2002 third
quarter were $259.7 million, compared to $237.5 million for 2001. Earnings per
share (assuming dilution) were $0.65 for the 2002 period, compared to $0.60 for
2001.
"The third quarter was a challenging one, and we are glad to have it behind us,"
said Chairman of the Board Richard M. Scrushy. "However, in the midst of all the
difficulties, there were positive things happening." Scrushy said HealthSouth
saw a 12 percent increase in inpatient rehabilitation revenue, among other
highlights in the full financial report available on the Web at
www.healthsouth.com.
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FACILITIES AWARDED TOP POSSIBLE GRADE
Three HealthSouth facilities in New Jersey and one in Alaska have gained
accreditation from the Joint Commission on Accreditation of Healthcare
Organizations (JCAHO) with a perfect score of 100. HealthSouth Southern Ocean
Surgery Center in Manahawkin, N.J.; HealthSouth Roseland Surgery Center in
Roseland, N.J.; HealthSouth Surgical Center of South Jersey in Mount Laurel,
N.J.; and HealthSouth Diagnostic Center of Anchorage, Alaska, were all able to
attain the elusive score.
Each of the four facilities gained accreditation after onsite inspections by
JCAHO, an independent, non-profit group and the nation's predominant healthcare
standard-setting body. The commission has developed professionally based
standards for healthcare since 1951. When accrediting a facility, JCAHO is
looking for the following:
Patient-focused Functions:
o Patient rights and organization ethics
o Assessment of care of patients
o Patient/Family education
o Continuum of care
Organizational Functions:
o Performance improvement
o Leadership
o Management of environment of care
o Management of human resources
o Management of information
o Surveillance, prevention and control of infection
Structures with Functions:
o Governance
o Management
o Medical Staff
o Nursing
In addition to these perfect 100 scores, HealthSouth's JCAHO scores across the
country are consistently above the national average.
GAMMA KNIFE CENTER OPENS IN WASHINGTON
Members of the Spokane, Wash., community were on hand Thursday, Sept. 12 to
celebrate the Deaconess Gamma Knife Center open house. The device allows doctors
to destroy brain tumors without making an incision.
Less than 20 percent of all major U.S. metropolitan areas have this technology.
Since 1993, HealthSouth has been a leading provider of Gamma Knife services with
programs in Alabama, Florida, Missouri, South Carolina, Texas and, now,
Washington state. About 1,200 patients have been treated annually at the
HealthSouth Gamma Knife centers.
EMPLOYEES RAISE $50,000 FOR UCP
HealthSouth employees in Birmingham, Ala., recently hosted a golf tournament
that raised more than $50,000 for United Cerebral Palsy. The tourney committee
was chaired by Tom Bradley, Sara Bryant and Sara McKay. Another local campaign
spearheaded by HealthSouth Chairman Richard M. Scrushy helped raise about $8
million for a learning center for United Cerebral Palsy of Great Birmingham that
opened in 2001. Employees across the nation are involved in many similar efforts
for their communities, annually raising millions of dollars to support local
charities.
USA WRESTLING JOINS HS
HealthSouth has signed a three-year, no-cash agreement with USA Wrestling to be
the exclusive provider of sports medicine for the national governing body of
Olympic wrestling.
HealthSouth will provide all of the certified athletic trainers for the nine
major wrestling tournaments held throughout the year, including the world
championships. The next Olympic competition will be in Athens, Greece, in August
2004. The USA Wrestling matches ultimately determine which wrestlers will
represent the United States in the Olympic Games.
THAT'S NO BULL!
PRO RIDERS COUNT ON HEALTHSOUTH TO STAY IN SADDLE
HealthSouth's relationship with the Professional Bull Riders (PBR) goes back
many years and has brought numerous cowboys through HealthSouth's doors for
treatment. In just the first six months of this year, HealthSouth physicians
operated on more than 60 of these tough athletes. HealthSouth received about
$1.5 million in television exposure in just the first four months of 2002 (14
events). Most importantly, these cowboys are receiving the medical care they
need.
"It's been a hard year for J.W.," said J.W. Hart, who recently won the PBR 2002
Bud Light Cup World Finals after being plagued with injury in 2002. He battled
an injured sacroiliac joint throughout the season, and in September fractured a
piece of one of his lumbar vertebrae. "Winning the world title is icing on the
cake, but there's a few guys I owe it to - God, Dr. Tandy Freeman and Rich Blyn
(HealthSouth Sports Medicine's athletic trainer). Without them, my event streak
would be broken and this win wouldn't be possible. I'll compete as long as Tandy
can keep putting me back together." HealthSouth's three-year contract covers 28
events each year, including the World Championships, which are televised on TNN
or another national network. In addition to the revenue generated through the
surgery division, HealthSouth is the title sponsor of the weekly injury update
and also receives an inordinate amount of signage and PA announcements through
its pact with PRB. This long-running partnership is a great example of how
sponsorships can work for the partner who needs quality healthcare, and for
HealthSouth.
THOUSANDS RETURN TO NORMAL LIFE AFTER BRAIN ATTACK
According to a comparison study published in the January 2002 issue of Stroke
Magazine, stroke patients who received care in rehabilitation hospitals (versus
nursing homes) were more likely to return to their community and recover their
activities of daily living. HealthSouth's inpatient rehabilitation hospitals
will treat more than 18,000 of those stroke patients this year, helping them
achieve as independent a life as possible.
The total stroke volume in HealthSouth hospitals will increase approximately11
percent in 2002, due to a targeted marketing effort and media campaign. The
program is aimed not only at patients who have recently had a stroke, but also
toward the 60 percent to 80 percent of stroke survivors who didn't receive
rehabilitation during their recovery process and could now benefit from
rehabilitation. Additional volume is possible in this product line with more
than 360,000 of the 600,000 stroke survivors being rehabilitation candidates.
"Rehabilitation following a stroke is actually extremely important. Recent
reviews of medical literature suggest it may be the most powerful treatment
available for people who have suffered a stroke," said Alexander Dromerick, MD,
associate professor of neurology and occupational therapy at Washington
University School of Medicine in St. Louis. Dromerick is co-director of the
Stroke Management and Rehabilitation Team; medical director of both the Subacute
Rehabilitation Service and the Brain Injury Rehabilitation Service; and head of
the section on Stroke and Brain Injury Rehabilitation.
HealthSouth has also partnered with the American Stroke Association to educate
the general public about the warning signs of stroke and the advantages of
receiving rehabilitation after a stroke.
SIGNS OF STROKE
Be sure you recognize the signs of stroke and seek help immediately if these
symptoms present themselves:
o Sudden numbness or weakness of face, arm or leg, especially on one side of
the body
o Sudden confusion, trouble speaking or understanding
o Sudden trouble seeing in one or both eyes
o Sudden trouble walking, dizziness, loss of balance or coordination
o Sudden severe headache with no known cause
REDESIGNED INTERNET SITE LAUNCHED
WITH NEW INVESTOR RELATIONS SECTION
HealthSouth.com has launched its all new Internet Web site for quick access to
more and better health and business information. A new "Investor Relations"
site, available through the corporate Web site or at hrcnews.com, provides a
wide range of detailed company information, including news and press releases.
Also included for investors are current HRC stock quotes, full financials,
summary financials, earnings estimates, analyst ratings, SEC filings, an
ownership profile, a printable edition of the HealthSouth Annual Report, e-mail
alerts and complete contact information. The updated site puts all these tools
at the investor's fingertips in an easy to use package.
Highlighted on the new site is the "Resource Center" featuring the Health
Illustrated Encyclopedia with more than 1,600 conditions, injuries, symptoms and
surgeries. Each topic includes a complete overview, graphics and links to
related subjects. The Resource Center includes a new collection of more than 400
animations that bring to life the human body and make medical procedures easier
to understand.
Another valuable feature of the Resource Center is the "Drug Reference and
Interaction Guide," with a complete overview of possible side effects, warnings
and other key information about prescription drugs. The daily "Health Headlines"
section of the Resource Center includes a video library, as well as selected
stories from HealthSouth publications. In the "Conditions Center" there are
hundreds of features about acute and chronic illnesses.
HARLEY RIDER RECALLS HS `MIRACLE' WORKERS
Dear HealthSouth,
On Aug. 4, 2001, I was riding my motorcycle and passing through Denver en route
to the Harley Davidson Rally in Sturgis, S.D. For a reason still unknown to me,
I locked up the wheels of my bike and laid it down on the Denver freeway while
traveling approximately 30 mph. I sustained a head injury and was transported to
Denver General Hospital.
After five days in the ICU, the hospital told my wife there was nothing else
they could do for me. Since it was impossible for us to stay in Denver, my wife
had to decide where in Phoenix to take me. Through her employer, the HealthSouth
facility in Glendale was recommended.
I have no memory of the accident, my stay at Denver General Hospital, or the
flight from Denver. I was heavily sedated during the whole time. I was a typical
head injury patient and the first few days at HealthSouth must have been quite
difficult for the staff. I was determined to remove all my hoses and IVs. I
didn't know what I was doing! On Aug. 13, I began to "come around" and from that
time until the time I was discharged on Aug. 30, HealthSouth worked "miracles."
Gene C. Herman
Phoenix, Ariz.
HEALTHSOUTH `SHINES LIKE BEACON IN NIGHT'
At a time when healthcare costs are escalating and news reports of patient
neglect and inadequate healthcare are surfacing, HealthSouth shines like a
beacon in the night.
My grandfather, John L. Dunson, twice a stroke victim, has been hospitalized at
HealthSouth on two different occasions for rehabilitation. The neuroscience
medical, nursing and rehabilitation staffs have been very supportive to him and
my family. Whenever we inquire about his care plan, the staff courteously
provides us with current and informative progress reports of everything from his
daily eating habits to his rehabilitation routine. Hospitalization of a loved
one can be mentally and physically challenging for a family, but I must commend
your staff for the care and respect exhibited during my grandfather's process to
recovery and rehabilitation.
Michelle L. White
USA