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5 surgical centers get new owner

Restructuring spurs major sale by HealthSouth

Published March 29, 2007 at midnight

HealthSouth Corp. facilities in Aurora, Golden and three other Colorado locations are trading hands as part of the rehabilitation chain's $940 million sale of its surgical centers to a private equity firm.

HealthSouth on Monday announced the sale to Texas-based TPG, expected to close this year. This is HealthSouth's second major sale this year as it restructures in the wake of a financial scandal.

Birmingham, Ala.-based Health-South's surgery division consists of 139 outpatient centers and three surgical hospitals. The network covers 35 states, with operations concentrated in California, Texas, Florida, North Carolina and Alabama.

In addition to the Aurora and Golden facilities, HealthSouth has two surgery centers in Colorado Springs and one in Pueblo.

HealthSouth is focusing solely on post-acute care as it recovers from a $2.7 billion accounting fraud that nearly drove it into bankruptcy. In January, HealthSouth agreed to sell about 600 outpatient rehabilitation centers to Select Medical Corp. for $245 million.

Fifteen former executives pleaded guilty in HealthSouth's fraud case, and another was convicted by jurors. Former CEO Richard Scrushy was acquitted of charges in the accounting scandal but is awaiting sentencing for a conviction in a separate government bribery case.

Colorado locations

Aurora: HealthSouth Aurora Surgery Center, 1300 S. Potomac St.

Golden: HealthSouth Denver West Surgery Center, 13952 Denver West Parkway

Colorado Springs: HealthSouth Surgery Center of Colorado Springs, 1615 Medical Center Point

Colorado Springs: Surgical Center at Premier, 3929 N. Union Blvd.

Pueblo: HealthSouth Surgery Center, 25 Montebello Road

or 303-954-2514.

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