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| 001-10315                | 63-0860407 |
| (Commission File Number) | (I.R.S. Employer Identification No.) |
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| ¨ | Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
|   |   |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |

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| 1) | establish, in addition to the existing $600 million revolving credit facility, a new $150 million term loan facility, under which amounts may be drawn on or before March 31, 2015; |

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| 2) | eliminate the requirement to mortgage any real property to secure the Company’s obligations under the Credit Agreement; |

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| 3) | permit, in addition to the specified amounts and types of permitted restricted payments, additional restricted payments so long as the senior secured leverage ratio is no greater than 1.75:1 (rather than the 1.50:1 threshold ratio applicable prior to the Amendment) after giving pro forma effect to those additional restricted payments; |

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| 4) | increase the amount of permitted capital expenditures in a given year from $250 million to $300 million, which amount is in addition to any unused portion of the permitted amount from the prior year; and |

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| 5) | set the maturity date for both the revolving credit and term loan facilities to September 20, 2019. |

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| • | It was developed on a bi-partisan basis by the House Ways and Means and Senate Finance Committees and incorporated feedback from healthcare providers and provider organizations that responded to the Committees’ solicitation of post-acute payment reform ideas and proposals. |

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| • | It directs the United States Department of Health and Human Services (“HHS”), in consultation with healthcare stakeholders, to implement standardized data collection processes for post-acute quality and outcome measures. |

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| • | Although the IMPACT Act does not specifically call for the development of a new post-acute payment system, the Company believes this act will lay the foundation for possible future post-acute payment policies that would be based on patients’ medical conditions and other clinical factors rather than the setting where the care is provided. |

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| • | It will create additional data reporting requirements for the Company’s hospitals and home health agencies.  The precise details of these new reporting requirements, including timing and content, will be developed and implemented by the United States Centers for Medicare and Medicaid Services through the regulatory process that the Company expects will take place over the next several years. |

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| • | While the Company cannot “quantify” the potential financial effect of the IMPACT Act on HealthSouth, the Company believes any post-acute payment system that is data-driven and focuses on the needs and underlying medical conditions of post-acute patients will be positive for providers who offer high-quality, cost-effective care.  HealthSouth believes it is doing just that and expects this act will be positive for the Company. |

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| • | However, it will likely take years for the related quality measures to be established, quality data to be gathered, standardized patient assessment data to be assembled and disseminated, and potential payment policies to be developed, tested and promulgated.  As the nation’s largest owner and operator of inpatient rehabilitation hospitals, HealthSouth looks forward to working with HHS, the Medicare Payment Advisory Commission and other healthcare stakeholders on these initiatives. |

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| 10.1 | Second Amendment and Additional Tranche Term Loan Amendment toThird Amended and Restated Credit Agreement, dated as of September 22, 2014, amongHealthSouth Corporation, Barclays Bank PLC, as administrative agent and collateral agent, Citigroup Global Markets Inc., as syndication agent, Bank of America, N.A., Goldman Sachs Lending Partners LLC, and Morgan Stanley Senior Funding, Inc., as    co-documentation agents, and various other lenders from time to time. |
| 99.1 | Press Release of HealthSouth Corporation, dated September 24, 2014. |

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| By:    | /S/   JOHN P. WHITTINGTON |
|   | Name: | John P. Whittington |
|   | Title: | Executive Vice President, General Counseland Corporate Secretary |