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HealthSouth Reports Results for Third Quarter Ended September 30, 2008
Date:11/4/2008

15,880 15,485 15,775 15,621

Occupied beds 4,301 4,095 4,353 4,213

EPOB 3.69 3.78 3.62 3.71

HealthSouth Corporation and Subsidiaries

Supplemental Information

The Company's TeamWorks initiative is producing results during 2008 that has yielded increased patient discharges. The table below shows the number of hospitals by quarter that has been introduced to TeamWorks and the consolidated total discharge volume growth for each period. During the fourth quarter of 2008, TeamWorks is being implemented at the HealthSouth hospital in Vineland, New Jersey, which the Company acquired on July 31, 2008.

Cumulative # of % Increase in Discharges for All 93 Hospitals

Hospitals with TeamWorks Quarter-Over-Quarter Year-Over-Year

Q1 2008 44 2.6% 2.6%

Q2 2008 76 5.6% 4.1%

Q3 2008 92 9.3% 5.8%

During the three and nine months ended September 30, 2008 and 2007, the Company derived consolidated net operating revenues from the following payor sources:

Three Months Ended Nine Months Ended

September 30, September 30,

2008 2007 2008 2007

Medicare 66.2% 66.1% 67.2% 67.9%

Medicaid 2.2% 2.1% 2.2% 1.9%

Workers' compensation 2.2% 2.3% 2.2% 2.3%

Managed care and other discount plans 19.3% 19.2% 19.0% 18.5%

Other third-party payors 7.6% 6.7% 6.9% 6.2%

Patients
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SOURCE HealthSouth Corporation
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