UPDATE: HealthSouth Acquires Additional Ownership Interest In Fairlawn Hospital And Updates Guidance
HealthSouth Corporation (NYSE: HLS), the nation's largest owner and operator of inpatient rehabilitation hospitals, today reported it has acquired an additional equity interest in Fairlawn Rehabilitation Hospital in Worcester, Massachusetts from its joint venture partner, UMass Memorial Health Care. This transaction increases HealthSouth's ownership interest from 50% to 80% and results in a change in accounting for this hospital from the equity method of accounting to a consolidated entity beginning June 1, 2014. As a result of the consolidation of this hospital and the remeasurement of its previously held equity interest to fair value, the Company expects to record a $25 million to $30 million gain during the second quarter of 2014.
"The additional ownership in Fairlawn Rehabilitation Hospital provides another opportunity for HealthSouth to grow by investing in its core business," said Executive Vice President and Chief Operating Officer Mark Tarr. "We look forward to our continued partnership with UMass Memorial Health Care and working together to maintain our focus on providing care that is both high quality and patient centered."
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