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Medicare Compliance & Reimbursement

HealthSouth Watch:

FEDS FIVE-FOR-FIVE ON HEALTHSOUTH CFOs

Published on Wed May 07, 2003

The high-profile accounting fraud probe of troubled rehab company HealthSouth Corp. continues forward, as prosecutors April 24 saddled yet another former company chief financial officer with criminal charges. According to Deputy Attorney General Larry Thompson, the Department of Justice has charged Aaron Beam, an original founder of HealthSouth and the company's first CFO, with bank fraud. Beam has agreed to plead guilty. The move means that the feds have now brought charges against every single HealthSouth CFO from the company's founding to the point at which the case broke. Beam is the fifth top financial officer to be formally accused in the probe, and the 11th executive overall.

"As a founder of HealthSouth and the CFO from 1984 to 1997, Mr. Beam's cooperation allows us greater understanding of the accounting fraud scheme at HealthSouth and those persons who participated in the scheme," says U.S. Attorney Alice Martin. Lesson Learned: As the HealthSouth probe widens, so could attention on corporate misconduct in health care generally - raising the stakes for compliance chiefs.  
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