Business
HealthSouth board members resign
NEWS IN BRIEF — Posted Jan. 12, 2004
Two longtime HealthSouth directors have stepped down in the wake of a legal settlement that called for an overhaul of the board at the embattled outpatient services giant.
George H. Strong and Charles W. Newhall III voluntarily resigned from the board Dec. 15, 2003, HealthSouth said. They are the first of five board members expected to step down over eight months as part of a settlement with the Teachers Retirement System of Louisiana, a group of shareholders.
The shareholders sued HealthSouth in the wake of a massive accounting scandal that has resulted in numerous guilty pleas from executives and the indictment of founder Richard Scrushy.
Under the agreement, new board members will be chosen with input from shareholders. HealthSouth said its search for new board members had begun and it was working toward filling the vacancies "as soon as practicable."
Note: This item originally appeared at http://www.ama-assn.org/amednews/2004/01/12/bibf0112.htm.
