1
 Barclays Capital Global
Healthcare Conference
 March 23, 2010
 Exhibit 99.1


Exhibit 99.1


2
 Table of Contents


Exhibit 99.1


3
 Note Regarding Forward-Looking Statements  The information contained in this presentation includes certain estimates, projections and other forward-looking information
that reflect our current views with respect to future events and financial performance. These estimates, projections and other
forward-looking information are based on assumptions that HealthSouth believes, as of the date hereof, are reasonable.
Inevitably, there will be differences between such estimates and actual results, and those differences may be material.
 There can be no assurance that any estimates, projections or forward-looking information will be realized.All such
estimates, projections and forward-looking information speak only as of the date hereof. HealthSouth undertakes no duty to
publicly update or revise the information contained herein.
 This presentation also includes estimates and projections published by the Centers for Medicare and Medicaid Services
(“CMS”). We are not able to verify those estimates or projections or the detailed calculations thereof by CMS which are not
made public. Any changes or errors in those calculations, among other uncertainties such as those referred to below and
changes in CMS’s own rules and policies, could cause actual results to differ materially from CMS’s projections.
Furthermore, we do not believe that CMS numbers are consistent with financial reporting results.CMS data and projections
should not be used as an indication of financial performance.
 You are cautioned not to place undue reliance on the estimates, projections and other forward-looking information in this
presentation as they are based on current expectations and general assumptions and are subject to various risks,
uncertainties and other factors, including those set forth in our Form 10-K for the year ended December 31, 2009, and in
other documents we previously filed with the SEC, many of which are beyond our control, that may cause actual results to
differ materially from the views, beliefs and estimates expressed herein.
 Note Regarding Presentation of Non-GAAP Financial Measures The following presentation includes certain “non-GAAP financial measures” as defined in Regulation G under the Securities
Exchange Act of 1934. The Appendix at the end of this presentation includes reconciliations of the non-GAAP financial
measures found in the following presentation to the most directly comparable financial measures calculated and presented in
accordance with Generally Accepted Accounting Principles in the United States. Our Form 8-K, dated March 22, 2010, to
which the following presentation slides are attached, provides further explanation and disclosure regarding our use of non-
GAAP financial measures and should be read in conjunction with these presentation slides.
 Cautionary Statements


Exhibit 99.1


4
 IRH
 LTCH
 93 Rehabilitation Hospitals
 40Outpatient Rehabilitation Satellites
 6  Long-Term Acute Care Hospitals
 25 Hospital-Based HomeHealth Agencies
 Portfolio
 Largest Provider of Inpatient Rehabilitative Healthcare Services in the U.S.
 Sites under Construction
 Exchange (Symbol) :NYSE (HLS)
 Employees :~ 22,000
 Corporate Office :  Birmingham, AL


Exhibit 99.1


5
 “The Basics”:Our Rehabilitation Hospitals
 Major Services:
 •  Physicians :manage and treat medical needs of patients
 •  Rehabilitation Nursing :oversees treatment program of patient
 •  Physical Therapy :addresses physical function, mobility, safety
 •  Occupational Therapy :promotes independence and re-integration
 •  Speech-Language Therapy :treats communication & swallowing disorders
 •  Case Managers :coordinate care plan with physician, caregivers, family
 •  Post-discharge services :outpatient therapy and home health
 Note:IRF hospitals are not CAPEX intensive:
 ü  No Emergency Rooms, ORs, Cath Labs, etc.


Exhibit 99.1


6
 “The Basics”:Our Patients
 94%
 5%
 1%
 Referral Sources
 Acute Care Hospitals
 Physician Offices
 Skilled Nursing Facilities
 All patients are admitted by a physician :
 Most Common Cases (2009)
 1.  Stroke17.5%
 2.  Neurological13.3%
 3.  Fractureofthelowerextremity11.7%
 4.  Debility11.5%
 5.  Knee/Hipreplacement9.6%
 6.  Otherorthopedicconditions9.5%
 7.  Braininjury7.4%
 8.  Cardiacconditions4.7%
 9.  Spinalcordinjury3.6%
 10.  Allother11.2%
 ü  Physicians and acute care hospital case managers are key decision-makers.
 ü  All IRF patients must meet medical necessity criteria.
 ü  All IRF patients must be medically stable and have potential to tolerate three hoursof therapy per day (minimum).


Exhibit 99.1


7
 “The Basics”:Our Competitors
 Competitors
 •  Freestanding IRFs
 •  Hospital IRF units
 •  Skilled nursing homes
 Patients
 Total Inpatient Rehabilitation Facilities (IRFs): 1,181
 Sources :FY 2010 CMS Rate Setting File and MedPAC March 2009 report; Internal HLS reports for HLS data;


Exhibit 99.1


8
 Discharges
 Consolidated Net Operating Revenues
 ($ Millions)
 +4.5%
 +5.4%
 Dollar Amounts$928.2$948.8$448.9$464.5$93.8$91.1
 EPOB (3)3.623.53
 30 bps
Improvement
 20 bps
Improvement
 110 bps
Improvement
 Expenses
 (1)
 (2)
 Solid, Sustained Operating Results
 (Thousands)


Exhibit 99.1


9
 Adjusted Income from Continuing
 Operations per Diluted Share (1)
 Adjusted Consolidated EBITDA
 ($ Millions)
 
 +12.3%
 
 90.8%
 (1) Reconciliation to GAAP provided on slides 41 through 42.
 Key Drivers :
 ü Increased volumes
 ü Improved labor productivity
 ü Disciplined expense management
 ü 2.5% Medicare market basket increase effective October 1, 2009
 Solid EBITDA and EPS Growth


Exhibit 99.1


10
 (1) Notes on page 42.
 Performance Highlights: Strong Free Cash Flow


Exhibit 99.1


11
 (1)Includes capital expenditures for the hospital refresh program.
 (2)Reflects seasonal use of cash related to interest and insurance payments.
 
 Performance Highlights: Strong Free Cash Flow


Exhibit 99.1


12
 (1)Based on four quarter trailing Adjusted Consolidated EBITDA of $383.0 million; see related debt schedule on slide 37, and reconciliation toGAAP on slides 41 through 42.
 Debt to EBITDA6.3x6.3x5.3x4.3x (1)
 Year-End2011Goal:3.5x to 4.0x
 Liquidity
 Continued Debt Reduction and Deleveraging
 Performance Highlights


Exhibit 99.1


13
 Business Outlook
 3.5x to 4.0x Debt to EBITDA (by YE 2011)
 ( Exclusive of any E&Y settlement)
 Organic growth through capacity
expansion and de novos
 (~ $60 million in 2010)
 IRF acquisitions/joint ventures
 Deleveraging
 Growth
 
 
 Acquisitions of other,
complementary post-acute services
 Reform
 1. Pricing
 2. Bundling
 Sector
Regulation
 Pilot/Demonstration
Projects
 •  LTCH: admission criteria; 25% Rule; MMSEA extension
 •  Home Health: outliers; reimbursement methodology
 Deleveraging, Growth, Reform and Sector Regulation
 No changeUnknown atthis time
 2010201120122013


Exhibit 99.1


14
 Regulatory Uncertainty
 Sources :Senate Reform Bill, CMS Regulatory published rules and MMSEA


Exhibit 99.1


15
 2010 Guidance (1)
 Guidance Philosophy
 Appropriately conservative at beginning of year; consistent
with past practices; does not include acquisitions.
 +4%to+6%
 Considerations :
 ü Continued market share gains
 ü Medicare pricing
 ü IT “pilot” investment
 Adjusted EPS(1)(2) : $1.60 to $1.70
 +10% to +17%
 Considerations :
 ü $5 million of additional stock-based compensation expenses
 ü 5 million more diluted shares (Securities Litigation Settlement)
 ü Assumes LIBOR remains unchanged throughout year
 ü Tougher “comps”:$0.69 Adjusted EPS growth (+90.8%) 2009 over2008
  Business
 Model
 +5% to +8%
 +15% to +20%
  ü  Start-up costs at two newhospitals
 ü  TeamWorks investment
 (1)Reconciliation to GAAP provided on slides 41 through 42.
 (2)Adjusted income from continuing operations per diluted share.


Exhibit 99.1


16
 Q110 Initial Observations
 Volume :
 ü  January - strong December discharges created steeper ramp up in January.
 ü  February - heavy snow falls affected some markets (e.g. Pennsylvania,Virginia, Tennessee, New Jersey and Arkansas).
 ü  March - volume growth mid-month on track.
 Expenses :
 ü  Expense management better than expected; improvement over Q109.
 Earnings:
 ü  Reaffirm 2010 guidance


Exhibit 99.1


17
 Summary
 ü  Industry Leader :Largest provider in attractive healthcare segment.
 ü  Strong Cash Flows :  Directed toward debt reduction and growth.
 ü  Continued Deleveraging :  Reduce leverage to between 3.5x and 4.0xno later than YE 2011.
 ü  Solid Organic Growth :  Volume growth + expense management.
 ü  Opportunistic, Disciplined Expansion :Capacity expansion and newhospitals coming online over next three years.
 ü  Well Positioned :  High-quality + cost-effective provider ; proven trackrecord of adapting to regulatory changes.
 Value Proposition


Exhibit 99.1


18
 Appendix


Exhibit 99.1


19
 (1) Data provided by UDSMR, a data gathering and analysis organization for the rehabilitation industry; represents ~ 65-70% of industry, including 90 HealthSouth sites.
 (2) Includes 90 consolidated HealthSouth inpatient rehab hospitals and six long-term acute-care hospitals.
 Operational Excellence:Sustained Market Share Gains
 HealthSouth vs. Industry
 Quarterly Discharges
 ü  HealthSouth’s volume growthhas outpaced competitors’
 ü  TeamWorks = standardizedsales & marketing
 ü  Capacity expansions will helpfacilitate organic growth:
  ~ 100 new beds 2009
  ~ 100 new beds 2010


Exhibit 99.1


20
 FIM Gain
 LOS Efficiency
 LOS Efficiency  = Functional gain
divided by length of stay
 Source :UDSmr Database - On Demand
Reports 2009 Year End Report
 FIM Gain  = Change in Functional
Independent Measurement (based
 on an 18 point assessment) from
Admission to Discharge
 ** Average = Expected, Risk-adjusted LOS Efficiency
 Operational Excellence = “High-Quality” Care
 * Average = Expected, Risk-adjusted FIM Change Average


Exhibit 99.1


21
 Operational Excellence = “Cost-Effective” Care
 CMS Fiscal Year 2010 IRF Rate Setting File Analysis (1)
 Freestanding(2)
Units (2)
Total

HealthSouthHospitals (2)Number of IRFs
228
953
1,181

94Average # of Discharges per IRF
649
237
316

822Outlier Payments as % of Total
Payments
1.32%
4.08%
3.00%

0.43%Average Estimated Total Payment
per Discharge for FY 2010
$16,452
$16,741
$16,626

$15,996Average Estimated Cost per
Discharge for FY 2010
$14,021
$17,207
$15,945

$12,633 Notes:
 (1)All data provided was filtered and compiled from the Centers for Medicare and Medicaid Services (CMS) Fiscal Year 2010 IRF rate setting finalrule file found at http://www.cms.hhs.gov/InpatientRehabFacPPS/07_DataFiles.asp#TopOfPage. The data presented was developed entirely byCMS and is based on its definitions which are different in form and substance from the criteria HealthSouth uses for external reporting purposes.Because CMS does not provide its detailed methodology, HealthSouth is not able to reconstruct the CMS projections or the calculation.
 (2)The CMS file contains data for each of the 1,181 inpatient rehabilitation facilities used to estimate the policy updates for the FY 2010 Final IRF-PPS Rule. Most of the data represents historical information from the CMS fiscal year 2008 period and does not reflect the same HealthSouthhospitals in operation today. The data presented was separated into three categories: Freestanding, Units, and HealthSouth. HealthSouth is asubset of Freestanding and the Total.


Exhibit 99.1


22
 Capacity expansions :
 •  Approximately 100 beds to be added in 2010.
 •  Average investment per bed including renovation:
 –  $100K to $250K
 De novos :
 •  Expanded joint venture with St. Vincent Health System in Little Rock, AR, through thepurchase of a 23-bed rehabilitation unit.
 •  Acquired the rehabilitation unit in Altoona, PA, through a newly formed joint venture andrelocated its operations to one of our hospitals.
 Organic Growth
 Cash pay-back:
 6 - 7 years
 Cash pay-back: 2 - 4 years


Exhibit 99.1


23
 IRFs have Lower Readmission Rates
 Note:Use of home health care and hospice is based on care that starts within three days of discharge.Other PAC care starts within one day ofdischarge.Home health use includes episodes that overlap an inpatient stay.
 Source : Medicare Payment Advisory Commission, “A Data Book:Healthcare spending and the Medicare program,” Chart 9-3 (June 2008)


Exhibit 99.1


24
 Revenues (Q4 2009 vs. Q4 2008)
 •  Inpatient revenue growth was driven by strong discharge volumes in Q4 2009 despite toughcomparisons in Q4 2008.
 –  Volume growth was driven by the sustained sales and marketing effort.
 –  Same store discharge growth was 4.2%.
 –  Pricing reflects 2.5% Medicare market basket increase effective October 1, 2009.
 •  Outpatient revenue declined as a result of 10 fewer outpatient satellites quarter over quarter.


Exhibit 99.1


25
 •  Salaries and benefits increased as a result of an October 1, 2009, 2.3% merit increase.
 –  Continued improvement on labor productivity demonstrated by lower EPOB.
 •  Hospital-related expenses increased as a result of higher discharge volume.


Exhibit 99.1


26
 Adjusted Consolidated EBITDA (1)  (Millions)
 (1)Reconciliation to GAAP provided on slides 41 through 42.
 •  Improvements driven by:
 –  Increased volumes
 –  Improved labor productivity
 –  Disciplined expense management
 –  2.5% Medicare market basket increase effective October 1, 2009


Exhibit 99.1


27
 Adjusted Income per Diluted Share (4Q 2009)
  (1)Reconciliation to GAAP provided on slides 41 through 42.
 •  The improvement in adjusted earnings per share, driven by higher AdjustedConsolidated EBITDA and lower interest expense, was offset by a $15.6 million loss onearly extinguishment of debt.
 –  Interest expense was lower as a result of lower debt balances and a lower LIBOR rate.


Exhibit 99.1


28
 (1)Reconciliation to GAAP provided on slides 41 through 42.


Exhibit 99.1


29
 Revenues (Year-End)


Exhibit 99.1


30
 Expenses (Year-End)


Exhibit 99.1


31
 Revenues (Sequential)


Exhibit 99.1


32
 Expenses (Sequential)


Exhibit 99.1


33
 Operational and Labor Metrics (1)
 (2)Represents discharges from HealthSouth’s 90 consolidated hospitals, which includes Mesa, Arizona starting in Q3 2009.
 (3)Excludes approx. 400 full-time equivalents, who are considered part of corporate overhead with their salaries and benefits included in generaland administrative expenses in the Company’s condensed consolidated statements of operations. Full-time equivalents included in the abovetable represent HealthSouth employees who participate in or support the operations of the Company’s hospitals.
 (4)Employees per occupied bed, or “EPOB,” is calculated by dividing the number of full-time equivalents, including an estimate of full-timeequivalents from the utilization of contract labor, by the number of occupied beds during each period. The number of occupied beds is determinedby multiplying the number of licensed beds by the Company’s occupancy percentage.


Exhibit 99.1


34
 Payment Sources
 (1)Managed Medicare revenues represent ~ 8% and 6% of total revenues for 2009 and 2008, respectively, and are included in “Managed careand other discount plans.”


Exhibit 99.1


35
 Debt Maturities:No Near-Term Financing Needs
 (Millions)
 =Term Loan maturities
 =10.75% Fixed
 =8.125% Fixed
 =Capital leases and termloan amortization
 As of December 31, 2009


Exhibit 99.1


36
 Interest Rate Swaps (Millions)
 (1)In October 2009, the credit agreement was amended. The maturity for $300 million of the term loan has been extended to 2015. The extended
 portion of the term loan will bear an interest rate of Libor plus 375.
 (2)Cash settlements flow through investing activities.
 (3)In June 2009, we entered into a receive-fixed rate swap as a mirror offset to $100.0 million of the $1,056 million interest rate swap.
 (4)Forward-starting interest rate swaps (designated as cash flow hedges). Cash settlements will flow through operating activities as part of interest
 expense.


Exhibit 99.1


37
 Debt Schedule (Millions)
 (1)The Company had $80.9 million in cash and cash equivalents as of December 31, 2009.
 (2)Based on four quarter trailing Adjusted Consolidated EBITDA of $383.0 million and $341.2 million respectively. See reconciliation to GAAPon slides 41 through 42.
 Debt to EBITDA(2)4.3x5.3x


Exhibit 99.1


38
 Credit Ratings


Exhibit 99.1


39
 Non-Operating Cash/Tax Position
 Cash Refunds as of Dec. 31, 2009
 •  Federal tax recoveries virtually complete.
 –  Approx. $43 million received.
 •  State tax refunds in progress.
 –  Approx. $21 million received.
 –  Approx. $10 million net receivable on
 the balance sheet.
 Future Cash Tax Payments
 •  Expect to pay about $5-7 million per year of incometax.
 – State income tax.
 – Alternative Minimum Tax (AMT).
 •  The Company does not expect to pay significantfederal income taxes for the next 10-12 years, dueto approximately $905 million in deferred tax assetsas of 12/31/09 outlined in the Form 10-K to be filedwith the SEC. The majority of the deferred tax assetis related to net operating losses (NOLs).
 – At this time, we do not believe the use
 of NOLs will be limited before they
 expire, however, no assurances can
 be provided.
 •  HealthSouth is not currently subject to an annualuse limitation (AUL) under the Internal RevenueCode section 382.
 •  If we experienced a “change of ownership” asdefined by the Internal Revenue Code section 382,we would be subject to an AUL, which is equal tothe value of the company at the time of the “changeof ownership” multiplied by the long-term tax exemptrate.
 GAAP Considerations
 •  HealthSouth’s balance sheet currentlyreflects a valuation allowance for thepotential value of NOLs and futuredeductions. The valuation allowance isapproximately $893 million.
 •  GAAP tax rate will net to small amount forforeseeable future as there will be areduction in the valuation allowance whenNOLs are utilized.


Exhibit 99.1


40
 Outstanding Share Summary (Millions)
 Notes:
 (1)Completed an equity offering for 8.8 million shares on June 27, 2008.
 (2)Does not include 2.0 million warrants issued in connection with a January 2004 loan repaid to Credit Suisse First Boston. In connection with thistransaction, we issued warrants to the lender to purchase two million shares of our common stock. Each warrant has a term of ten years from thedate of issuance and an exercise price of $32.50 per share. The warrants were not assumed exercised for dilutive shares outstanding becausethey were antidilutive in the periods presented.
 (3)The agreement to settle our class action securities litigation received final court approval in January 2007. These shares of common stock andwarrants were issued on September 30, 2009. The 5.0 million of common shares are now included in the outstanding shares.The warrants at astrike price of $41.40 were not assumed exercised for the dilutive shares outstanding because they are anti-dilutive in the periods presented.
 (4)The difference between the basic and diluted shares outstanding is primarily related to our convertible perpetual preferred stock.


Exhibit 99.1


41
 Three & Twelve Months Reconciliation of Net Income to Adjusted Income
from Continuing Operations and Adjusted Consolidated EBITDA (1) (3)
 (1) (2) (3) (4) - Notes on page 42.


Exhibit 99.1


42
 Reconciliation Notes
 1.  Adjusted income from continuing operations and Adjusted Consolidated EBITDA arenon-GAAP financial measures. The Company’s leverage ratio (Total Consolidated Debtto Adjusted Consolidated EBITDA for the trailing four quarters) is, likewise, a non-GAAPfinancial measure. Management and some members of the investment communityutilize adjusted income from continuing operations as a financial measure and AdjustedConsolidated EBITDA and leverage ratio as liquidity measures on an ongoing basis.These measures are not recognized in accordance with GAAP and should not beviewed as an alternative to GAAP measures of performance or liquidity. In evaluatingthese adjusted measures, the reader should be aware that in the future HealthSouthmay incur expenses similar to the adjustments set forth above.
 2.  Per share amounts for each period presented are based on basic weighted averagecommon shares outstanding for all amounts except adjusted income from continuingoperations per diluted share, which is based on diluted weighted average sharesoutstanding. The difference in shares between the basic and diluted shares outstandingis primarily related to our convertible perpetual preferred stock.
 3.  Adjusted income from continuing operations per diluted share and AdjustedConsolidated EBITDA are two components of our guidance.
 4.  The Company’s Credit Agreement allows certain other items to be added to arrive atAdjusted Consolidated EBITDA, and there may be certain other deductions required.