MASHINIi

HealthSouth.

HLS.US | Hospital activities

HealthSouth Corporation, now known as Encompass Health, is a provider of post-acute healthcare services. The company operates a network of inpatient rehabilitation hospitals and home health and hospice agencies. These facilities offer a range of services, including rehabilitation for patients recove...Show More

Ethical Profile

Mixed.

Encompass Health (formerly HealthSouth) presents a mixed ethical picture. The company has accumulated over $28.8 million in employment-related penalties since 2000, including for wage and hour violations. Reports also link the company to historical accounting fraud totaling $545 million and False Claims Act violations exceeding $404 million, primarily between 2000-2020. While its core business provides vital post-acute care, critics point to limitations in access for vulnerable populations due to reliance on insurance or direct payment. Current data on fair pay, ethical sourcing, and environmental impact is largely insufficient for a comprehensive assessment.

Value Scores

Better Health for All10
-100100
Fair Money & Economic Opportunity0
-100100
Fair Pay & Worker Respect-30
-100100
Fair Trade & Ethical Sourcing0
-100100
Honest & Fair Business-50
-100100
Kind to Animals0
-100100
No War, No Weapons0
-100100
Planet-Friendly Business0
-100100
Respect for Cultures & Communities0
-100100
Safe & Smart Tech0
-100100
Zero Waste & Sustainable Products0
-100100

Better Health for All

10

Encompass Health's core business is providing rehabilitative care, home health, and hospice services, which are inherently health-positive. The company is the largest owner and operator of inpatient rehabilitation hospitals in the United States, with 166 hospitals in 38 states and Puerto Rico, and also operates 245 home health and 83 hospice locations.

1
These services are for patients recovering from major injury or illness, including conditions like stroke, cancer, and heart issues, utilizing advanced technology and innovative treatments to maximize recovery.
2
There is no evidence of revenue from products or activities with negative health outcomes.

Fair Money & Economic Opportunity

0

HLS.US (Encompass Health) operates as a provider of post-acute healthcare services, including inpatient rehabilitation hospitals and home health and hospice agencies.

1
The 'Fair Money & Economic Opportunity' value assesses financial institutions and their provision of financial services such as lending, insurance, and deposit services. As HLS.US is not a financial institution and does not offer consumer financial products, all KPIs related to financial services, including underserved client share, pricing fairness, exploitative fee exposure, inclusion initiatives, data accessibility, fair lending compliance, wealth building outcomes, profit reinvestment in community finance, financial literacy initiatives, debt burden ratio, geographic inclusion for financial services, and product simplicity for financial products, are not applicable to its core business operations, aligning with the '0' tier definitions for each KPI.

Fair Pay & Worker Respect

-30

As of December 31, 2022, only 50 employees at one hospital, representing approximately 0.14% of the total workforce, were represented by a labor union.

1
The nurse turnover rate in 2022 was 28.1%.
2
As of December 31, 2022, 11,121 employees, or 31.77% of the approximately 35,000-strong workforce, were on pool/per-diem contracts.
3
All full-time and most part-time employees are eligible for health insurance and other benefits.
4
The company's overall employee rating on Glassdoor is 3.7 out of 5.
5
Some employees report earning less than $18 or $20 per hour, and new hires may start at $5 to $8 more per hour than current employees.
6
The company, including its predecessor HealthSouth, has faced penalties totaling $978,182,289 since 2000, including $28,895,210 for employment-related offenses such as benefit plan administrator violations and wage and hour violations.
7

Fair Trade & Ethical Sourcing

0

No evidence available to assess HealthSouth on Fair Trade & Ethical Sourcing.

Honest & Fair Business

-50

The company engaged in massive, systemic accounting fraud, with fraudulent entries ranging from $3.8 billion to $4.6 billion.

1
This included systematically overstating earnings by at least $1.4 billion since 1999
2
and $2.6 billion from 1996 through mid-2002.
3
As a result, HealthSouth filed a Form 8-K in March 2003, stating that previously filed financial statements should no longer be relied upon,
4
and subsequently restated its finances for 2000 and 2001, reducing reported revenues by $1.5 billion.
5
The SEC charged HealthSouth and its CEO, Richard Scrushy, with accounting fraud.
6
CEO Scrushy was also indicted for bribery, allegedly paying over $500,000 to an Alabama Governor for a board seat.
7
A HealthSouth employee and former CFO Weston Smith blew the whistle on the fraud.
8
PricewaterhouseCoopers conducted a forensic audit.
9
The previous auditor, Ernst & Young, failed to detect the fraud.
10
In December 2004, HealthSouth agreed to pay $325 million to the U.S. government to settle allegations of defrauding Medicare and other federal healthcare programs.
11

Kind to Animals

0

No evidence available to assess HealthSouth on Kind to Animals.

No War, No Weapons

0

No evidence was found in the provided article to assess HealthSouth (HLS.US) against any of the KPIs for the 'No War, No Weapons' ethical value. The article focuses on general corporate governance, ethical business conduct, and compliance with financial standards, without mentioning any activities related to arms, defense, dual-use technologies, conflict zones, or peacebuilding initiatives.

1

Planet-Friendly Business

0

No evidence available to assess HealthSouth on Planet-Friendly Business.

Respect for Cultures & Communities

0

No specific, quantitative data points relevant to the 'Respect for Cultures & Communities' ethical value were found across the provided articles. The articles primarily discuss general diversity, equity, and inclusion (DEI) efforts, EEO-1 reporting, and allegations of sexual harassment and assault

1
, none of which directly provide metrics for formal partnerships, community reinvestment, cultural incidents, impact assessments, local employment, grievance mechanisms, FPIC participation, community governance, cultural preservation, local procurement, indigenous suppliers, cultural site protection, social license, charitable giving, community funds, language inclusivity, cultural incident response, or cultural training completion.

Safe & Smart Tech

0

EncompassCare, a subsidiary of Encompass Health, experienced an unauthorized access to its IT network on September 17, 2024, which potentially acquired sensitive consumer information including names, addresses, Social Security numbers, and medical information.

1
The incident was identified on October 4, 2024, with disclosure to the Massachusetts Attorney General on January 9, 2025.
2
The company provides continual security awareness training for all employees, including quarterly email phishing exercises, and all employees complete detailed training on Protected Health Information (PHI) annually.
3
Encompass Health offers users comprehensive control over their personal data, including rights to access, delete, correct, opt out of targeted advertising or data sale/sharing, and supports Opt-Out Preference Signals like Global Privacy Control (GPC).
4
Its security program includes continuous internet perimeter vulnerability scanning and penetration tests performed by external parties.
5
The company demonstrates strong regulatory compliance, adhering to HIPAA, CCPA/CPRA, FERPA, federal and state price transparency laws, and SEC disclosure requirements, supported by a comprehensive ethics and compliance program and dedicated HIPAA officers.
6

Zero Waste & Sustainable Products

0

No evidence available to assess HealthSouth on Zero Waste & Sustainable Products.

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AI-generated analysis based on publicly available data. Not financial advice. Ratings are expressions of opinion derived from automated models and may contain inaccuracies. See our Risk Disclosure for full details.