Financial failure occurs when entrepreneurs make bad decisions that lead to economic downturns. All companies in the world strive to overcome financial crises. However, there are good examples of companies that have overcome financial failure and restored their financial health. This essay discusses how HealthSouth Corporation’s got into a financial failure and how it overcame the failure. HealthSouth Corporation is at Alabama, and it is the biggest corporation that owns and operates inpatient rehabilitative hospitals in The USA. The corporation operates in approximately 33 states in The USA. The Corporation has rehabilitative services, rehabilitation clinics, hospice agencies and home health agencies. The corporation caters for the patients that are in the process of recovering from diseases such as amputations, neurological disorders, orthopedic conditions, cardiac conditions, brain injuries, spinal injuries and pulmonary conditions among others. The corporation experienced a financial challenge in 203 when Richard M.Scrushy, who was the CEO (Chief Executive Officer), Chairman and founder, directed the company’s employees to exaggerate the corporation’s earnings in a bid to meet the shareholders’ expectations. The causes of the financial crises are provided in the first part of the essay and the second part of the essay describes how the corporation recovered from the financial challenge.
