EXHIBIT 99



            TEXT OF LETTER TO EMPLOYEES IN USE BEGINNING MAY 30, 2003

                                 [LOGO OMITTED]

May 30, 2003


Dear HealthSouth Employee:

We are writing to update you on two areas - the tremendous progress we've made
over the last two months in stabilizing our operations, and some matters you may
have seen in news reports.

Operational Stability and Positioning HealthSouth to Return to Health

Thanks to all of your efforts, we have made great strides over the last eight
weeks in stabilizing our operations and positioning HealthSouth for a return to
financial and operating health. Our ongoing operations are generating positive
cash flow, our cash position continues to improve, and we are meeting our
commitments to our employees, suppliers and physician partners. The bottom line
is that HealthSouth has a healthy core business -- both clinically and
financially.

The review of our business operations by Alvarez & Marsal, our turnaround firm,
continues to move forward. Alvarez & Marsal is continuing to "scrub" our
corporate balance sheet, fix any problems identified and look for ways to reduce
corporate spending while still supporting our core patient operations. As you
may know, we recently eliminated additional overhead positions at the corporate
office, bringing our corporate organizational design and support structure down
to a size appropriate for the Company's operations across the country. We
believe that the staffing reductions are now complete and that we have the team
in place to support our facilities as we move forward.

In addition, we have also made significant progress in disposing of the bulk of
our aircraft fleet. We have effectively disposed of all but four of the 13
aircraft. The elimination of unneeded sponsorships is complete and our
entertainment ventures have been completely shut down.

We are working with the presidents of each of the divisions to develop new
strategies to build on our core strengths. A number of our payors have also been
doing periodic audits of our operational processes in the field, and the reports
have been generally positive.

PricewaterhouseCoopers (PwC) is making significant progress in its forensic
review of the Company's accounting records; we understand that the PwC team
should largely be done with this review by the end of June. A separate team from
PwC has been selected as the Company's new independent auditor, enabling us to
begin work on producing new audited financial statements for the company as soon
as practicable.

Once Alvarez & Marsal and PwC have finished their work, we will have a much
clearer picture of the company's true earnings power and our ability to service
the approximately $3.3 billion of debt we have at the corporate level. At that
time, we will be in a position to develop a restructuring plan for the Company.
Whatever course we take to fix the financial side of our business, in our out of
bankruptcy court, we expect - and you should expect - that HealthSouth will
continue to operate uninterrupted. Employees will still receive salaries and
benefits, patients will still receive our outstanding quality of care, our
doctors will still be able to treat and refer patients to our facilities with
confidence, and we intend to pay our suppliers and vendors for their services.




Based on what we know now, we do not anticipate taking any actions that will
affect your salaries, benefits or 401(k) accounts, nor do we anticipate taking
any actions that would result in further company-wide layoffs. We are very much
in control of our destiny, and we don't intend to take any actions that are not
in the long-term best interests of you - our valued employees - as well as our
patients, medical partners, suppliers and other constituencies.

News Reports and our Legal Situation

HealthSouth continues to cooperate fully with all of the investigations
surrounding the company, and we are committed to helping bring the people who
committed the fraud to justice. The Board has selected the law firm of Skadden,
Arps, Slate, Meagher & Flom LLP to serve as lead coordinating counsel on both
corporate and litigation matters. Skadden Arps represents nearly one-half of the
Fortune 250 industrial and service corporations, as well as many financial and
governmental entities.

Some of you may have had questions when you read or heard about Richard
Scrushy's lawsuits against the company and whether his recent statements in the
press about returning to the company are true. Let us assure you that the Board,
by a unanimous vote of the outside directors, determined that the former CEO's
employment contract was null and void, and we do not foresee any circumstance
under which he will be welcome again at HealthSouth. The media stories about one
of his lawyers trying to put together a group of investors to buy the company
are probably the first of many stories that will be put out in the coming weeks
by the same lawyers. We believe they are doing this to distract the media from
the former CEO's very serious legal situation. These potential distractions
should be treated as simply that: distractions. Our legal team will monitor all
of these situations and apprise us of any necessary action that needs to be
taken.

You will also hear a great deal about the US Congressional investigation into
the fraud by the House Energy and Commerce Committee. The hearings, which we
expect later in the summer, are also likely to be featured prominently in the
media. We ask that you continue to focus your attention on taking care of our
patients. In return, we will keep you updated as much as possible on these
ongoing actions.

Summary

In conclusion, we are optimistic about the future of HealthSouth and are proud
of you and the work that you do every day. Please feel free to share the points
made in this letter with your co-workers, families, patients, physicians and
other referral sources. Remember, we are all the faces of HealthSouth, and we
remain confident in our ability to come out of this trying period as a stronger
company.

If you have specific questions, please remember to send them to
employeehotline@healthsouth.com and check the intranet at inside.healthsouth.com
for the answers to the most "Frequently Asked Questions."

Sincerely,

/s/ Joel C. Gordon                               /s/ Robert P. May

Joel C. Gordon                                   Robert P. May
Interim Chairman of the Board                    Interim Chief Executive Officer