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

| ¨ | Written communications 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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| ●   | Scenario 1 – Select Committee mirrors President’s Fiscal Commission (Simpson-Bowles): The President’s Fiscal Commission (Simpson-Bowles) proposed a wide range of policies to reduce federal government spending on healthcare. Based on the Company’s assessment of these proposals, it believes only two policies would have an impact on its financial performance: (i) a reduction in the maximum allowable federal matching contributions under state provider tax programs and (ii) elimination of reimbursement for a portion of beneficiary co-pays deemed uncollectible by providers. Management estimates that these proposals would reduce full-year net operating revenues and Adjusted EBITDA in 2012 by approximately $4 million and $7 million, respectively. This is a “gross” effect and does not include any actions the Company may take to mitigate the effects of the reduction. These revisions would be permanent. |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | Scenario 2 – Select Committee fails and default mechanism is triggered: As discussed above, should the Select Committee fail to recommend or Congress fail to pass a minimum of $1.2 trillion in deficit reductions, automatic reductions to Medicare reimbursement would be triggered and become effective October 1, 2012. Management estimates that this two-percent reduction to inpatient rehabilitation Medicare expenses in 2013 would reduce the Company’s full-year net operating revenues and Adjusted EBITDA by approximately $32 million. This is a “gross” effect and does not include any actions the Company may take to mitigate the effects of the reduction. After 2013, annual revisions to Medicare reimbursement would be subject to market basket updates less any healthcare adjustments, and total Medicare revenues may continue to be subject to the two-percent sequestration. |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                             |   | For the Three Months Ended |   |   | For the Six Months Ended |   |   |                            |   |   |   |   |   |   |   |   |   |   |
|------------------------------------------------------------------|--------|----------------------------|--------|--------|--------------------------|--------|--------|---------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                             |   | June 30,                   |   |   | June 30,                 |   |   | For the Year Ended December 31, |   |
|                                                             |   | 2011                       |   |   | 2010                     |   |   | 2011                            |   |   | 2010   |   |   | 2010   |   |   | 2009   |   |   | 2008 |   |   | 2007 |   |
|                                                             |   | (In Millions)              |   |
| Net cash provided by operating activities                        |   | $                          | 67.8   |   |                     | $      | 88.3   |                            |   | $      | 156.9  |   |   | $      | 173.1  |   |   | $      | 331.0 |   |   | $ | 406.1 |   |   | $ | 227.2 |   |   | $ | 230.6 |   |
| Provision for doubtful accounts                                  |   |                       | (5.0   | )      |                     |   | (5.2   | )                               |   |   | (9.8   | )      |   |   | (11.1  | )      |   |   | (16.4 | ) |   |   | (30.7 | ) |   |   | (23.0 | ) |   |   | (28.5 | ) |
| Professional fees—accounting, tax, and legal               |   |                       | 8.4    |   |                     |   | 5.7    |                            |   |   | 12.2   |   |   |   | 8.6    |   |   |   | 17.2 |   |   |   | 8.8 |   |   |   | 44.4 |   |   |   | 51.6 |   |
| Interest expense and amortization of debt discounts and fees     |   |                       | 34.9   |   |                     |   | 30.1   |                            |   |   | 70.0   |   |   |   | 60.6   |   |   |   | 125.6 |   |   |   | 125.7 |   |   |   | 159.3 |   |   |   | 229.2 |   |
| UBS Settlement proceeds, gross                                   |   |                       | -      |   |                     |   | -      |                            |   |   | -      |   |   |   | -      |   |   |   | - |   |   |   | (100.0 | ) |   |   | - |   |   |   | - |   |
| Equity in net income of nonconsolidated affiliates               |   |                       | 3.2    |   |                     |   | 2.6    |                            |   |   | 5.7    |   |   |   | 5.2    |   |   |   | 10.1 |   |   |   | 4.6 |   |   |   | 10.6 |   |   |   | 10.3 |   |
| Net income attributable to noncontrolling interests in           |   |                       |   |   |                     |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| continuing operations                                            |   |                       | (11.3  | )      |                     |   | (10.3  | )                               |   |   | (23.1  | )      |   |   | (20.0  | )      |   |   | (40.9 | ) |   |   | (33.3 | ) |   |   | (29.8 | ) |   |   | (31.1 | ) |
| Amortization of debt discounts and fees                          |   |                       | (1.2   | )      |                     |   | (1.7   | )                               |   |   | (2.3   | )      |   |   | (3.4   | )      |   |   | (6.3 | ) |   |   | (6.6 | ) |   |   | (6.5 | ) |   |   | (7.8 | ) |
| Distributions from nonconsolidated affiliates                    |   |                       | (2.8   | )      |                     |   | (1.2   | )                               |   |   | (5.5   | )      |   |   | (3.3   | )      |   |   | (8.1 | ) |   |   | (8.6 | ) |   |   | (10.9 | ) |   |   | (5.3 | ) |
| Current portion of income tax expense (benefit)                  |   |                       | 0.7    |   |                     |   | (3.0   | )                               |   |   | (1.4   | )      |   |   | (1.0   | )      |   |   | 2.9 |   |   |   | (7.0 | ) |   |   | (72.8 | ) |   |   | (330.4 | ) |
| Change in assets and liabilities                                 |   |                       | 18.2   |   |                     |   | 0.3    |                            |   |   | 29.5   |   |   |   | (1.5   | )      |   |   | 2.7 |   |   |   | (2.0 | ) |   |   | 50.6 |   |   |   | 5.5 |   |
| Change in government, class action, and related settlements      |   |                       | (10.8  | )      |                     |   | -      |                            |   |   | (6.5   | )      |   |   | 0.8    |   |   |   | 2.9 |   |   |   | 11.2 |   |   |   | 7.4 |   |   |   | 171.4 |   |
| Premium paid on bond redemption                                  |   |                       | 18.0   |   |                     |   | -      |                            |   |   | 18.0   |   |   |   | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Premium received on bond issuance                                |   |                       | -      |   |                     |   | -      |                            |   |   | (4.1   | )      |   |   | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Cash provided by operating activities of discontinued operations |   |                       | (5.1   | )      |                     |   | (6.0   | )                               |   |   | (7.2   | )      |   |   | (7.3   | )      |   |   | (13.2 | ) |   |   | (5.7 | ) |   |   | (32.5 | ) |   |   | (3.3 | ) |
| Other                                                            |   |                       | 0.3    |   |                     |   | 0.8    |                            |   |   | 0.4    |   |   |   | 0.9    |   |   |   | 2.1 |   |   |   | 1.2 |   |   |   | (1.4 | ) |   |   | 14.5 |   |
| Adjusted EBITDA                                                  |   | $                          | 115.3  |   |                     | $      | 100.4  |                            |   | $      | 232.8  |   |   | $      | 201.6  |   |   | $      | 409.6 |   |   | $ | 363.7 |   |   | $ | 322.6 |   |   | $ | 306.7 |   |

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| 99.1           Press release of HealthSouth Corporation, dated August 8, 2011.                                                          |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 99.2           Supplemental slides provided in connection with the HealthSouth Corporation investor conference call on August 9, 2011.  |

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|   | HEALTHSOUTH Corporation |                                                                          |
|--------|------------------------------|-------------------------------------------------------------------------------|
|   |                         |                                                                          |   |
|   | By:                          | /s/  Douglas E. Coltharp                                                 |   |
|   |                         | Name:  Douglas E. Coltharp                                               |   |
|   |                         | Title:    Executive Vice President and Chief Financial Officer |   |
|   |                         |                                                                          |   |