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

|        |
|--------|
|        |  |
| £ | Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|   |   |
| £ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
|   |   |
| £ | 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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|                 |                                                                                                                    |
|-----------------|--------------------------------------------------------------------------------------------------------------------|
| Item 2.03. | Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. |

|    |                                                                                                                      |
|----|----------------------------------------------------------------------------------------------------------------------|
| 1) | increases the maximum capacity under the senior secured revolving credit facility from $500 million to $600 million; |

|    |                                                                                                                                                                                                                                                        |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2) | reduces by 50 basis points each of the various applicable interest rates for any outstanding balance on the revolving credit facility, depending on the Leverage Ratio (as defined in the 2012 Credit Agreement), during a given interest rate period; |

|    |                                                                                                       |
|----|-------------------------------------------------------------------------------------------------------|
| 3) | repays and eliminates the existing $95 million term loan by draw under the revolving credit facility; |

|    |                                                                                                                                                                                              |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4) | amends the existing $200 million accordion feature to permit future increases in revolving borrowing capacity or new term loans, or both, in an aggregate amount not to exceed $300 million; |

|    |                                                                                                                                                    |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------|
| 5) | permits secured borrowings by non-guarantor subsidiaries outside the 2012 Credit Agreement in an aggregate amount not to exceed $100 million; |

|    |                                                                                                                                                                                                                                                                                                                                                        |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 6) | permits, in addition to the existing specified types of permitted restricted payments, restricted payments for the repurchase of the Company's 6.50% series A convertible perpetual preferred stock so long as there is no default or event of default and the Leverage Ratio is no greater than 3:1 after giving pro forma effect to each repurchase; |

|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 7) | permits capital expenditures of $300 million in each of fiscal years 2012 and 2013 and $250 million in each fiscal year thereafter, which amounts are subject to increase based on any unused amount from the prior fiscal year, plus (a) an aggregate cumulative amount equal to 50% of the Excess Cash Flow (as defined in the 2012 Credit Agreement), and (b) certain other amounts including net cash proceeds from certain equity issuances; and |

|    |                                                                                           |
|----|-------------------------------------------------------------------------------------------|
| 8) | extends the maturity date for the revolving credit facility from May 2016 to August 2017. |

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|      |                                                                  |
|------|------------------------------------------------------------------|
| 99.1 | Press Release of HealthSouth Corporation, dated August 13, 2012. |

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