| 001-10315                | 63-0860407                          |
|--------------------------|-------------------------------------|
| (Commission File Number) | (I.R.S. EmployerIdentification No.) |

| ¨ | 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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| ·   | Volume: Strong December 2009 discharges created a steeper ramp up in January 2010. Heavy snow falls in February 2010 affected some markets (e.g. Pennsylvania, Virginia, Tennessee, New Jersey, and Arkansas). Volume growth through mid-month is on track for March 2010. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Expenses: Expense management has been better than expected in the first quarter of 2010, creating improvement over the first quarter of 2009. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Earnings: The Company reaffirms its 2010 guidance as presented in its Current Report on Form 8-K dated February 22, 2010 and discussed during its earnings conference call on February 23, 2010. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                         |   |    | For the Year Ended December 31, |   |
|------------------------------------------------------------------------------|--------|---------|---------------------------------|--------|
|                                                                         |   |    | 2009                            |   |   |   |   | 2008 |   |
|                                                                         |   |    | (In Millions)                   |   |
| Net cash provided by operating activities                                    |   | $       |  406.1                     |   |   |   | $ |  227.2 |   |
| Provision for doubtful accounts                                              |   |    |  (33.1                     | )      |   |   |   |  (27.0 | )  |
| Professional fees—accounting, tax, and legal                           |   |    |  8.8                       |   |   |   |   |  44.4 |   |
| Interest expense and amortization of debt discounts and fees                 |   |    |  125.8                     |   |   |   |   |  159.5 |   |
| Gain (loss) on sale of investments                                           |   |    |  0.8                       |   |   |   |   |  (1.4 | )  |
| UBS Settlement proceeds, gross                                               |   |    |  (100.0                    | )      |   |   |   |  - |   |
| Equity in net income of nonconsolidated affiliates                           |   |    |  4.6                       |   |   |   |   |  10.6 |   |
| Net income attributable to noncontrolling interests in continuing operations |   |    |  (33.4                     | )      |   |   |   |  (29.8 | )  |
| Amortization of debt discounts and fees                                      |   |    |  (6.6                      | )      |   |   |   |  (6.5 | )  |
| Distributions from nonconsolidated affiliates                                |   |    |  (8.6                      | )      |   |   |   |  (10.9 | )  |
| Current portion of income tax benefit                                        |   |    |  (7.3                      | )      |   |   |   |  (73.8 | )  |
| Change in assets and liabilities                                             |   |    |  0.8                       |   |   |   |   |  53.1 |   |
| Change in government, class action, and related settlements liability        |   |    |  11.2                      |   |   |   |   |  7.4 |   |
| Other operating cash used in (provided by) discontinued operations           |   |    |  13.5                      |   |   |   |   |  (11.4 | )  |
| Other                                                                        |   |    |  0.4                       |   |   |   |   |  (0.2 | )  |
| Adjusted Consolidated EBITDA                                                 |   | $  |  383.0                     |   |   |   | $  |  341.2 |   |

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|                                                                      |   |    | Three Months  |   |   |    | Three Months |   |   |    | Year         |    |   |    | Year         |    |
|---------------------------------------------------------------------------|--------|---------|---------------|--------|--------|---------|--------------|--------|--------|---------|--------------|---------|--------|---------|--------------|---------|
|                                                                      |   |    | Ended         |   |   |    | Ended        |   |   |    | Ended        |    |   |    | Ended        |    |
|                                                                      |   |    | December 31,  |   |   |    | December 31, |   |   |    | December 31, |    |   |    | December 31, |    |
|                                                                      |   |    | 2009          |   |   |    | 2008         |   |   |    | 2009         |    |   |    | 2008         |    |
|                                                                      |   |    | (In Millions) |   |
| Net cash provided by operating activities                                 |   | $  |  44.0    | (1)    |   | $  |  77.9   | (1)    |   | $  |  406.1  |    |   | $  |  227.2  |    |
| Impact of discontinued operations                                         |   |    |  4.1     |   |   |    |  (11.9  | )      |   |    |  13.5   |    |   |    |  (11.4  | )       |
| Net cash provided by operating activities of continuing operations        |   |    |  48.1    |   |   |    |  66.0   |   |   |    |  419.6  |    |   |    |  215.8  |    |
| Capital expenditures for maintenance                                      |   |    |  (9.6    | )      |   |    |  (17.4  | )      |   |    |  (34.1  | )  |   |    |  (42.6  | )       |
| Net settlements on interest rate swaps                                    |   |    |  (11.9   | )      |   |    |  (6.8   | )      |   |    |  (42.2  | )       |   |    |  (20.7  | )       |
| Dividends paid on convertible perpetual preferred stock                   |   |    |  (6.5    | )      |   |    |  (6.5   | )      |   |    |  (26.0  | )  |   |    |  (26.0  | )       |
| Distributions paid to noncontrolling interests of consolidated affiliates |   |    |  (9.9    | )      |   |    |  (7.1   | )      |   |    |  (32.7  | )  |   |    |  (33.4  | )  |
| Non-recurring items:                                                      |   |    |          |   |   |    |         |   |   |    |         |    |   |    |         |    |
| UBS Settlement proceeds, less fees to derivative plaintiffs' attorneys    |   |    |  -       |   |   |    |  -      |   |   |    |  (73.8  | )  |   |    |  -      |    |
| Income tax refunds related to prior periods                               |   |    |  (4.2    | )      |   |    |  (63.1  | )      |   |    |  (63.7  | )  |   |    |  (90.4  | )  |
| Cash paid for:                                                            |   |    |          |   |   |    |         |   |   |    |         |    |   |    |         |    |
| Professional fees - accounting, tax, and legal                            |   |    |  3.8     |   |   |    |  5.3    |   |   |    |  15.3   |    |   |    |  18.2   |    |
| Government, class action, and related settlements                         |   |    |  0.2     |   |   |    |  -      |   |   |    |  11.2   |    |   |    |  7.4    |    |
| Adjusted free cash flow                                                   |   | $  |  10.0    |   |   | $  |  (29.6  | )      |   | $  |  173.6  |    |   | $  |  28.3   |    |

|   | (1) | Net cash provided by operating activities for the year ended December 31, 2009 and 2008 was $406.1 million and $227.2 million, respectively. Net cash provided by operating activities for the nine months ended September 30, 2009 and 2008 was $362.1 million and $149.3 million, respectively, as reported in the Company’s Form 10-Q for the quarterly period ended September 30, 2009. The difference is the $44.0 million and $77.9 million of net cash provided by operating activities for the three months ended December 31, 2009 and 2008, respectively. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | 99.1 | Slide presentation of HealthSouth Corporation used in connection with the Company’s March 23, 2010 presentation at the Barclays Capital 2010 Global Healthcare Conference. |
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|   | HEALTHSOUTH Corporation |                                                                                        |
|--------|-------------------------|---------------------------------------------------------------------------------------------|
|   |                    |                                                                                        |   |
|   | By:                     | /s/  JOHN P. WHITTINGTON                                                               |   |
|   |                    | Name:  John P. Whittington                                                             |   |
|   |                    | Title:    Executive Vice President, General Counsel, and Corporate Secretary |   |
|   |                    |                                                                                        |   |