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Biotech / Medical : HRC HEALTHSOUTH -- Ignore unavailable to you. Want to Upgrade?

To: KS who wrote (45)	11/3/1999 10:51:00 PM
From: Tunica Albuginea	Read Replies (1) \| Respond to of 181

KS: Interview with R. Scrushy,ÿ CEO of HRC on CNBC biocognizance.com NetCognizance Forum2 [ Home \| Contents \| Search \| Post \| Reply \| Next \| Previous \| Up ]ÿ Interview with Richard Scrushy, ChM and CEO of HRC From: C R Nasmythe Date: 03 Nov 1999 Time: 11:28:49 Remote Name: 63.22.104.99 Comments HRC meets reduced estimates at 16½; revenue down 5% to $993m, net income down 45% to $66.9mÿ HRC dropping plans to spin-off inpatient unit in September, saying it expects to take $300m in restructuring charges by year’s endÿ Will continue to look at spin-off; just postponed it indefinitelyÿ Adjusting themselves now to crushing changes brought on 1997 Balanced Budget Act and to changes in managed care reimbursement; this Q good example of operating margins of a company like thatÿ 27-28% margins mean company is in good shapeÿ Thinks street still likes idea of spin-off, it’s just uncertain about changes in reimbursement – HRC delay was due to tax reasons, and that they didn’t want to drag shareholders through processÿ HRC instead focused on managing facilities, pricing issues, margins, and taking advantage of development opportunitiesÿ Results seeing this q indicates they made the right decisionÿ On September10th Scrushy and managing team purchased 6-7m shares at 5 ó; he thinks it’s a good investmentÿ Scrushy thinks HRC has bottomed out; can see growth Q over Qÿ Outstanding assets, strong balance sheet, very good companyÿ Thinks margins will continue to grow; 27-29% margins strong for any industry – growth is just a matter of timeÿ HRC Facts:ÿ HRC the largest US provider of rehabilitative health care and outpatient surgery services with over 1900 locations in US, UK, Australia and Puerto Ricoÿ Partnered with HLTH and WBMD to form sports medicine web siteÿ Contracts with major insurers, HMOs and large employers like WMT, GT and WINÿ Centres include: Outpatient surgery centres, diagnostic centres for imaging services, occupational medicine centres for work-related illnesses and injuryÿ Plans to terminate some existing national and regional managed care contracts with unfavourable pricing and renegotiate new contracts in local marketsÿ Postponed plans to spin-off inpatient operation to shareholdersÿ Will invest up to $1b over 3-5 yrs to make technology and facility upgrades and improve mgmt info and billing systemsÿ HRC down 1/16 to 6 1/8ÿ cnetinvestor.com; Last changed: November 03, 1999ÿ