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Thu January 29, 2004
New Direction in HealthSouth Case
By Alabama Public Radio
Birmingham, AL – The U-S Justice Department is embarking on a new direction in its investigation of HealthSouth. The Wall Street Journal reports investigators are trying to determine if the company violated federal anti-bribery laws. Specifically, they want to know whether HealthSouth provided kickbacks to win access to the Saudi Arabian healthcare market. U-S companies are prohibited from engaging in such activity. The Justice Department's investigation of financial fraud at HealthSouth has prompted 15 employees to plead guilty. Founder and former C-E-O Richard Scrushy faces an 85 count indictment and is scheduled to go to trial in August.