HealthSouth taps MedAssets HSCA services

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MedAssets HSCA has become HealthSouth Corp.'s exclusive supply chain partner and group purchasing organization (GPO).

In addition, MedAssets HSCA has assumed accountability to manage the Birmingham, Ala. company's supply costs and control for its supply chain procurement processes. The contract goes into effect on Dec. 1.

The St. Louis, Mo.-based GPO will afford HealthSouth a connection to more than 1,100 vendor supply contracts, including vendor agreements and negotiated and pre-approved pricing specifically for HealthSouth.

HealthSouth is the nation's largest provider of outpatient surgery, imaging and rehabilitative healthcare services, with approximately 1,700 locations.

The healthcare provider has been in the process of a major reorganization since March, when federal authorities began a massive investigation into allegations that the company intentionally overstated its earnings by $1.4 billion since 1999 and overstated assets by $800 million in order to inflate its stock prices. Former chairman and CEO Richard M. Scrushy was the target of the probe.

The healthcare provider also laid off more than 300 employees and reduced expenses to avoid bankruptcy.