US hospital chain "default risk":
This article was originally published in Clinica
Troubled US hospital chain operator HealthSouth has had its credit rating from Standard & Poor's (S&P) reduced and is facing bankruptcy following a freezing of its credit line. The Birmingham, Alabama-based organisation is facing charges of fraud from the Securities and Exchange Commission for allegedly overstating earnings by $1.4bn since 1999. S&P has reduced its credit rating to CCC-, and both the chairman and CFO, Richard Scrushy and William Owens, are facing charges for fraudulent activities. HealthSouth board members Joel Gordon and Robert May ill adopt Mr Scrushy's responsibilities as chairman and CEO respectively.