HealthSouth Executes Letter of Intent To Purchase Walton Rehabilitation Hospital in Augusta, Georgia

   HealthSouth Executes Letter of Intent To Purchase Walton Rehabilitation
                         Hospital in Augusta, Georgia

PR Newswire

BIRMINGHAM, Ala., Oct. 24, 2012

BIRMINGHAM, Ala., Oct. 24, 2012 /PRNewswire/ --HealthSouth Corporation (NYSE:
HLS) today announced it has executed a letter of intent to acquire Walton
Rehabilitation Hospital, a 58-bed inpatient rehabilitation hospital owned by
the Walton Rehabilitation Health System located in Augusta, Georgia. 

"Walton Rehabilitation Hospital has a long history of providing high-quality
care. The purchase of Walton Rehabilitation Hospital by HealthSouth will
uniquely position the hospital to continue its well known and respected legacy
as a premier provider of physical rehabilitation long into the future," said
Linda Wilder, president of HealthSouth's southeast region. "We are pleased to
have the opportunity to retain the Walton Rehabilitation Hospital name and
serve the Central Savannah River Area."

"The result of combining a high-quality regional rehabilitation hospital with
the resources of the nation's largest owner and operator of inpatient
rehabilitation hospitals is a clear and focused commitment to preserve and
extend access to Walton Rehabilitation Hospital's high standard of care for
Augusta and the entire Central Savannah River Area," said Dennis Skelley,
president and chief executive officer of Walton Rehabilitation Health System.
"We are excited about how this decision will bring financial strength and
advanced capabilities (including a fully integrated electronic medical record
system) to Walton Rehabilitation Hospital in the years to come. The sale of
the 58-bed inpatient rehabilitation hospital to HealthSouth allows Walton
Foundation and Walton Community Services to focus on its mission of providing
community health services, specifically independent and assisted living
opportunities for persons with disabilities."

"Although HealthSouth has rehabilitation hospitals in 27 states, including
four that share a border with Georgia, we do not currently have a presence in
the state of Georgia," said Wilder. "The acquisition of Walton Rehabilitation
Hospital will allow HealthSouth to serve a new market, complement
HealthSouth's existing network of rehabilitation hospitals, and be an
important start to the continued growth of that network in Georgia."

The transaction is subject to customary closing conditions as well as review
by the Georgia Attorney General's office and the Georgia Department of
Community Health. The parties are hopeful the transaction will be finalized
during the first quarter of 2013.

About Walton
Walton Rehabilitation Health System is a Joint Commission Accredited provider
of physical medicine and rehabilitation throughout the Central Savannah River
Area. Services range from inpatient to outpatient programs to community
re-entry, assisted living, pain management, and affordable housing
opportunities for persons recovering from brain and spinal injuries, stroke,
amputation and pain. Walton includes Walton Rehabilitation Hospital, Walton
Outpatient Therapy Center, Walton Community Services, Walton Pain Center,
Walton Behavioral Medicine Center, Walton Foundation for Independence and
partners with Walton Options for Independent Living.

About HealthSouth
HealthSouth is the nation's largest owner and operator of inpatient
rehabilitation hospitals in terms of patients treated and discharged, revenues
and number of hospitals. Operating in 27 states across the country and in
Puerto Rico, HealthSouth serves patients through its network of inpatient
rehabilitation hospitals, outpatient rehabilitation satellite clinics and home
health agencies. HealthSouth's hospitals provide a higher level of
rehabilitative care to patients who are recovering from conditions such as
stroke and other neurological disorders, orthopedic, cardiac and pulmonary
conditions, brain and spinal cord injuries, and amputations. HealthSouth can
be found on the Web at www.healthsouth.com.

Statements contained in this press release which are not historical facts,
such as those relating to the likelihood, timing and effects of the completion
of this acquisition, are forward-looking statements. In addition, HealthSouth,
through its senior management, may from time to time make forward-looking
public statements concerning the matters described herein. All such estimates,
projections, and forward-looking information speak only as of the date hereof,
and HealthSouth undertakes no duty to publicly update or revise such
forward-looking information, whether as a result of new information, future
events, or otherwise. Such forward-looking statements are necessarily
estimates based upon current information, involve a number of risks and
uncertainties, and relate to, among other things, future events, HealthSouth's
plan to repurchase its debt or equity securities, its business strategy, its
financial plans, its future financial performance, or its projected business
results or model, or its projected capital expenditures. Actual events or
results may differ materially from those anticipated in these forward-looking
statements as a result of a variety of factors. While it is impossible to
identify all such factors, factors which could cause actual events or results
to differ materially from those estimated by HealthSouth include, but are not
limited to, any adverse outcome of various lawsuits, claims, and legal or
regulatory proceedings involving the Company, including the Houston HHS-OIG
investigation; breaches of security in or failures of HealthSouth's
information systems; significant changes in its management team; its ability
to successfully complete and integrate de novo developments, acquisitions,
investments, and joint ventures consistent with its growth strategy; the
possibility that this acquisition will experience unexpected delays; the risk
of a significant adjustment to the purchase price; changes, delays in
(including in connection with resolution of Medicare payment reviews or
appeals), or suspension of reimbursement for its services by governmental or
private payors; changes in the regulation of the healthcare industry at either
or both of the federal and state levels, including as part of national
healthcare reform and deficit reduction; competitive pressures in the
healthcare industry generally or in a specific market and HealthSouth's
response thereto; its ability to obtain and retain favorable arrangements with
third-party payors; its ability to attract and retain nurses, therapists, and
other healthcare professionals in a highly competitive environment with often
severe staffing shortages and the impact on HealthSouth's labor expenses from
potential union activity and staffing shortages; general conditions in the
economy and capital markets; the increase in the costs of defending and
insuring against alleged professional liability claims and our ability to
predict the estimated costs related to such claims; and other factors which
may be identified from time to time in HealthSouth's SEC filings and other
public announcements, including its Form 10‑K for the year ended
December31,2011 and Forms 10-Q for the quarters ended March 31, 2012 and
June 30, 2012.

HealthSouth Contacts:
Media: Lindsay Jones, 205 410-2777, lindsay.jones@healthsouth.com
Investor Relations: Mary Ann Arico, 205 969-6175,
maryann.arico@healthsouth.com

Walton Rehabilitation Hospital Contact:
Danielle Wong Moores, 706 496-5956, dwongmoores@yahoo.com

SOURCE HealthSouth Corporation

Website: http://www.healthsouth.com
 
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