Richard Scrushy Case Study

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Essay 1 In Order to pursue his dream, Richard Scrushy wanted to build a better future for him and his wife. After graduating from the University of Alabama, he obtained an entry level job at Life-mark Corp. Scurshy started from the bottom and climbed his way up to success. In 1984, Scrushy found HealthSouth, to providing a healthcare services for senior citizen and athlete. Soon after it opened it, started to attract costumers including famous athletes. Scrushy to become one of the most successful business executive. But not every business obtains their position on top. Scrushy used to manipulate and use creative methods to lie and cover his back when HelathSouth start losing a lot of patients and money. The positive affect of owning a healthcare business is it an always developing business, which mean more money for the company. Scrushy was able to identify the main injuries, which include feet, knees, and hips, Since a lot of people back then were exercising more, they were more to get injured which makes them eligible for Medicare. The main source of income for HealthSouth is Medicare. By 1987, HealthSouth’s revenue doubled to $100 million in assets. But that did not stop HealthSouth from spreading across the country…show more content…
In 1997, due to economic situations happening in the United State, the government had to cut Medicare. It was dreadful news for HealthSouth, because Medicare was 37% of HealthSouth’s revenues. Scrushy and other executives commence to sell their shares of HealthSouth in order to bring the company back to business, But selling it is not enough because it still missing 86% on net income. In 1999 HealthSouth income increased by 500% , when the sales were only 15%. In order to keep HelathSouth safe, Scrushy started showing false charts to explain where the success were coming from. But in fact, all this documents and charts were actually

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