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HealthSouth Reports Results for First Quarter Ended March 31, 2008
Date:5/6/2008

Revenues, Discharges, and Net Income Increase

Operating Cash Flows Increase

BIRMINGHAM, Ala., May 6 /PRNewswire-FirstCall/ -- HealthSouth Corporation (NYSE: HLS) (the "Company") today reported its results of operations for the first quarter ended March 31, 2008. Compared to the first quarter of 2007, net operating revenues increased by 5.8%, discharges increased by 2.7%, and net income increased by $76.4 million.

"The results of the first quarter indicate our growth strategies are gaining traction. Discharges were up 2.7% quarter over quarter and 5.3% sequentially, which drove net operating revenue increases of 5.8% and 6.8%, respectively. In addition to solid organic growth, the recent announcement of our purchase of The Rehabilitation Hospital of South Jersey demonstrates that our development efforts are starting to yield results," said Jay Grinney, President and Chief Executive Officer of HealthSouth. "In addition to implementing our growth strategies, we also continued to manage our expenses in a disciplined manner and, on March 31, 2008, closed on the sale of the corporate campus, which will yield additional expense reductions on a go-forward basis."

Net Operating Revenues

Consolidated net operating revenues for the first quarter of 2008 were $469.0 million, a $25.9 million, or 5.8% increase from the same quarter of 2007. Net operating revenues from our inpatient hospitals were $423.0 million, representing a 7.7% increase over the same quarter of 2007. This increase was primarily attributable to an increase in our Medicare reimbursement that was effective October 1, 2007 and a 2.7% increase in discharges quarter over quarter. The quarter-over-quarter increase in discharge
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SOURCE HealthSouth Corporation
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