2017 J.P. MORGAN 
HEALTHCARE CONFERENCE
 San Francisco, CA│January 10, 2017
 Mark Tarr, 
President and Chief Executive Officer
 2
 The information contained in this presentation includes certain estimates, projections and other forward-looking
 information that reflect HealthSouth's current outlook, views and plans with respect to future events, including
 legislative and regulatory developments, strategy, capital expenditures, acquisition and other development activities,
 cyber security, dividend strategies, repurchases of securities, effective tax rates, financial performance, financial
 assumptions, business model, and shareholder value-enhancing transactions. These estimates, projections and
 other forward-looking information are based on assumptions HealthSouth believes, as of the date hereof, are
 reasonable. Inevitably, there will be differences between such estimates and actual events or 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.
 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 HealthSouth's Form 10-K for the year ended
 December 31, 2015, the Form 10-Q for the quarters ended March 31, 2016, June 30, 2016, and September 30, 2016,
 and in other documents HealthSouth previously filed with the SEC, many of which are beyond HealthSouth's  control,
 that may cause actual events or 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, including Adjusted EBITDA, leverage ratios, adjusted earnings per share, and
 adjusted free cash flow. Schedules are attached that reconcile the non-GAAP financial measures included 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. HealthSouth's Form 8-K, dated January 9,
 2017, to which the following presentation is attached as Exhibit 99.1, provides further explanation and disclosure
 regarding HealthSouth's use of non-GAAP financial measures and should be read in conjunction with this
 presentation.
 Forward-Looking Statements
 3
 Inpatient Rehabilitation
 Portfolio - As of December 31, 2016
 123
 Inpatient Rehabilitation Hospitals
 • 37 operate as joint ventures with
 acute care hospitals
 30 Number of States (plus Puerto Rico)
 ~ 28,000 Employees
 HealthSouth: A Leading Provider of Post-Acute Care
 59% of HealthSouth's IRFs
 are located within a 30-
 mile radius of an
 Encompass location.
 IRF Market Share
 Largest owner and operator of IRFs
 21% of Licensed Beds
 28% of Medicare Patients Served
 Home Health and
 Hospice Market Share
 4th largest provider of
 Medicare-certified
 skilled home health
 services 
Note: One of the 123 IRFs and two of the 188 adult home health locations are nonconsolidated.
           These locations are accounted for using the equity method of accounting.
 Encompass 
Home Health and Hospice
 Portfolio – As of December 31, 2016
 188 Home Health Locations
 35 Hospice Locations
 25 Number of States
 ~ 7,700 Employees
 4
 2014 2015 2016
 10.6% 10.6%
 10.4%
 10.7% 10.6% 10.7%
 2014 2015 2016
 14.5% 13.9% 13.1%
 11.4% 10.7% 10.1%
 2014 2015 2016
 74.4% 75.2%
 75.7%
 77.1% 78.0%
 78.7%
 Home Health QualityIRF Quality
 Discharge to Community 
Discharge to Skilled Nursing 
Discharge to Acute Hospital 
Percent of cases
 discharged to
 the community,
 including home
 or home with
 home health. 
Higher is better.
 Percent of
 patients
 discharged to a
 skilled nursing
 facility. 
Lower is better.
 Percent of
 patients
 discharged to an
 acute care
 hospital. 
Lower is better.
 Refer to pages 26-27 for end notes.
 3.8
 3.2
 Quality of Care
 Star Ratings(2)
 99% of Encompass' home
 health agencies are 
3 Stars or higher
 3.6 3.6 Patient Satisfaction 
Star Ratings(2)
 95% of Encompass' home
 health agencies are 
3 Stars or higher
       Encompass            National Average
 15.2%
 16.9%
 30-Day 
Readmission Rate
  Percent of patients readmitted
 to an acute care hospital. 
Lower is better.
 170 bps bette
 r
       UDSMR(1)                 HealthSouth
 Leading Positions in Quality of Care
 5
 Leading Position in Cost Effectiveness(3) - IRFs
 Medicare pays
 HealthSouth less
 per discharge,
 on average, and
 HealthSouth
 treats a higher
 acuity patient.
 Avg.
 Beds
 per IRF
 Avg.
 Medicare
 Discharges
 per IRF(5)
 Case
 Mix
 Index(6)
 Avg. Est.
 Total Cost
 per
 Discharge
 for FY 2017
 Avg. Est.
 Total
 Payment
 per
 Discharge
 for FY 2017
 HLS(4) = 119 68 956 1.25 $12,645 $19,371
 Free-
 Standing
 (Non-HLS) =
 144 57 582 1.23 $16,653 $20,248
 Hospital
 Units = 870 24 234 1.18 $19,879 $20,551
 Total 1,133 33 354 1.21 $17,152 $20,153
 The average estimated total payment per discharge, as stated, does not reflect a 2% reduction for sequestration.(7) 
Refer to pages 26-27 for end notes. 
 
HealthSouth differentiates
 itself by:
  “Best Practices” clinical
 protocols
  Supply chain
 efficiencies
  Sophisticated
 management information
 systems
  Economies of scale
 6
 2015 AverageRevenue Visits
 Effective
 Revenue Cost
 Episodes per Episode per Episode per Visit per Visit
 Encompass 137,568 $3,072 19 $162 $72
 Public Peer
 Average 259,215 $2,732 17* $161 $84*
 Encompass
 Compared to
 Peer Average
 12.4% 11.8% 0.6% (14.3)%
 Leading Position in Cost Effectiveness - Home Health
 Encompass' average
 revenue per episode
 is 12.4% higher due
 to higher acuity
 patient mix.
 Encompass' cost per
 visit is 14.3% lower
 due to market
 density & operational
 efficiency:
  Caregiver
     optimization
  Full utilization of
     Homecare  
    Homebase (HCHB)
  Employee culture
 of excellence
  ~76% of visits 
    conducted
     by full-time staff
  Daily monitoring of 
    productivity
 Public peer average represents 2015 data from publicly traded home health providers.
 * One publicly traded company (Kindred) does not report visit counts.
 7
 IRF-Home Health Clinical Collaboration (All Payors)
 * Generally defined as a HealthSouth IRF located within a 30-mile radius of an Encompass location.
 All Markets
 Q4 2015 Q4 2016
 19,915 19,674
 2,821 4,051
 12.4%
 Collaboration Rate
 17.1%
 Collaboration Rate
 Overlap Markets*
 Q4 2015 Q4 2016
 10,360 10,074
 2,735 3,963
 20.9%
 Collaboration Rate
 28.2%
 Collaboration Rate
 HealthSouth IRF Discharges to
 non-Encompass Home Health
 HealthSouth IRF Discharges to
 Encompass Home Health
 Clinical collaboration rate with
 HealthSouth IRFs increased by
 730 basis points over Q4 2015
 8
 Both Segments Benefit from a Demographic Tailwind:
 Expanding Medicare Beneficiary Population
      Key Observations:
 • The growth rate of Medicare beneficiaries
 increased in 2011 to an approx. 3% CAGR
 as “baby boomers” started turning 65. 
• In 2030, the Medicare population is projected
 to increase to 81 million beneficiaries from
 55 million beneficiaries today.
 Source: www.census.gov/population/projections/files/summary/NP2014-T9.xls; Center for Medicare & 
             Medicaid Services, Medicare Trustees Report - June 2016 - pages 186, 191
 Average Age of HealthSouth Patients
 IRF Home Health
 < 65 years 29% 11%
 65 to 69 years 13% 11%
 70 to 74 years 13% 13%
 75 to 79 years 14% 15%
 80 to 84 years 14% 17%
 85 to 89 years 11% 17%
 > 90 years 6% 16%
 9
 CMS: Driving Change Toward Integrated Delivery Payment
 Models, Value-Based Purchasing, and Site Neutrality
 Future Post-Acute Providers (Timing?)
  Inpatient Rehabilitation Facilities
 • Full range: low acuity g high acuity
 • 24/7 nursing coverage
 • Eliminates payment silos
 Home-Based Post-Acute Services
 • More care in the home 
(lowest cost setting)
 • Differentiator: Ability to care for high-acuity,
 poly-chronic patients
 >> 50% of Medicare fee-for-service
 payments via integrated delivery
 payment models 
>> 90% of Medicare fee-for-service
 payments tied to quality/value
  Integrated Delivery 
   Payment Models
  Value-Based
    Payments
 • Site Neutrality
 Current Post-Acute Providers
 • Medicare payments/regulations will be
 outcome focused.
 • Many existing regulations will become
 obsolete.
 Facility-Based Post Acute Services
 >> 30% of Medicare fee-for-service
 payments via integrated delivery
 payment models (e.g., bundled
 payments; accountable care
 organizations (ACOs))
 >> 85% of Medicare fee-for-service
 payments tied to quality/value (i.e.,
 value-based purchasing,
 readmissions reduction programs)
 20172016
 Source: Health and Human Services Fact Sheet announcing new reimbursement goals - January 26, 2015
 CMS
 Goals
 2018 2019
 CMS
 Goals
  Skilled Nursing Facilities
  Home Health
 • Medicare payments/regulations are site
 specific (e.g., 60% Rule, 3-Hour Rule,
 "preponderance" of one-to-one therapy).
  Long-Term Acute Care Hospitals
 10
  
      Always Available
        Sometimes Available
        Seldom Available
 Therapy
 Gym &
 Training
 Systems for
 All PAC
 Patients
 Staff Trained
 for All Acuity
 Therapy
 Gym &
 Training
 Systems for
 All PAC
 Patients
 Staff Trained
 for All Acuity
 Therapy
 Gym &
 Training
 Systems for
 All PAC
 Patients
 Staff Trained
 for All Acuity
 LTACs HealthSouth IRFs SNFs
 Encompass
 Home Health
 HealthSouth’s rehabilitation hospitals have the physical construct, clinical
 staffing, and operating expertise to “pivot from the center” to address the full
 spectrum of inpatient post-acute needs in a site neutral environment. 
HealthSouth is Well-Positioned for the Progression Towards Site Neutrality as It Will
 be Able to Treat All Types of Post-Acute Patients by Leveraging Its Operational
 Expertise Across Its Network of Facility-Based and Home-Based Assets.
 Higher acuity patients will
 transition from HealthSouth
 post-acute inpatient
 facilities to Encompass
 Home Health.
 Lower acuity patients will
 go directly to Encompass
 Home Health.
 Post-Acute Inpatient Spectrum
 Higher Acuity Lower Acuity
 Progression to Site Neutrality
    HealthSouth's Post-Acute Inpatient Facilities
 Presen
 t
 Futur
 e
 11
 2016 Summary
 GROWTH
 CAPITAL STRUCTURE
 OPERATIONAL INITIATIVES
 u Integrated Reliant and CareSouth
 u Opened or acquired four new hospitals(8)
  10 IRF projects underway
 u Expanded existing hospitals by 83 beds(8)
 u Acquired or opened 10 home health agencies and 8 hospice locations(9)
 u Expanded clinical enhancements to further improve patient outcomes
  Deployed clinical protocols and coordinated discharge planning between HealthSouth
 IRFs and Encompass home health agencies
  Developed initial predictive model to identify patients at risk for acute care transfer
  Implemented multidisciplinary medication reconciliation process using EMR
 u Participated in alternative payment models
  Participated in Bundled Payment for Care Improvement as Awardee and Episode Initiator
  Developed collaborator agreement proposal for select CJR markets (includes SHFFT)
 u Reduced debt by ~$160 million*
  Redeemed outstanding principal balance of $176 million of 7.75% Senior Notes due 2022
  S&P and Moody's revised rating outlooks from negative to stable
 u Increased shareholder distributions
  Repurchased 1.7 million shares of common stock for ~$64 million
  Paid ~$84 million in cash dividends
  Raised cash dividend per common share for third straight year (from $0.23 to $0.24)
 * Revolver balance at December 31, 2016 was ~$150 million.
 Refer to 26-27 for end notes.
 12
 Priorities for 2017
 GROWTH
 u Expand network of freestanding IRFs
  Demographic trends driving increasing demand for IRF services
  IRFs are best positioned to expand service offering in the progression towards site
 neutrality
  Continue emphasis on joint venture opportunities to enhance positioning in integrated
 delivery models
 u Expand network of home health agencies ($50 million to $100 million of
 acquisitions)
  Demographic trends driving increasing demand for home health services
  Home health will benefit from SNF disintermediation
  Continue emphasis on:
 ü Increasing overlap with HealthSouth's IRFs
 ü Increasing market density via acquisitions in existing and contiguous home health
 markets
 ü Selectively acquiring hospice assets to overlap with home health locations
 OPERATIONAL INITIATIVES
 CAPITAL STRUCTURE
 13
 Priorities for 2017
 GROWTH
 CAPITAL STRUCTURE
 OPERATIONAL INITIATIVES
 u Develop and implement initial risk sharing strategies
  Implement collaborator and/or preferred provider agreements in select CJR markets
 (includes SHFFT)
  Design and pilot commercial bundle with select Medicare Advantage plans
 u Enhance clinical collaboration between HealthSouth and Encompass
  Structure and implement                                  initiative to extrapolate best practices
 across all overlap markets
 u Refine and expand clinical enhancements to further improve patient outcomes
  Complete installation of EMR and continue in-service upgrades
  Enhance utilization of clinical data analytics strategies
 ü Refine and expand predictive model to identify patients at risk for acute care transfers
 u Increase stroke market share by further communicating the HealthSouth value
 proposition to acute care hospitals, physicians, and commercial payors
  AHA and ASA guidelines recommend IRF over SNF
  99 of HealthSouth's hospitals hold stroke-specific certifications from The Joint
 Commission's Disease-Specific Care Certification Program.
 u Maintain strength and flexibility of balance sheet
 u Continue to augment returns from investments in operations with shareholder
 distributions
 14
 CMS:
 • Adopted four new claims-based quality reporting measures beginning
 October 1, 2016 to satisfy the reporting requirements of the IMPACT Act:  
–  Discharge to Community; 
–  Medicare Spending Per Beneficiary; 
–  Potentially Preventable 30-Day Post-Discharge Readmission 
          Measure; and 
–  Potentially Preventable Within Stay Readmission Measure.    
• Adopted one new assessment-based quality measure beginning
 October 1, 2018:  Drug Regimen Review Conducted with Follow-Up for
 Identified Issues.  
IRF-PPS Fiscal Year 2017 Final Rule: Key Provisions
 New Quality Reporting
 Update to Payment Rates
 Company Observations
 Pricing: 
• Net pricing impact to HealthSouth
 expected to be an increase of
 approx. 1.9% for FY 2017 (see
 page 22)
 • Because of its efficient cost
 structure, HealthSouth receives
 very few outlier payments despite
 higher acuity patients. 
Quality:
 • HealthSouth will supplement
 existing quality reporting systems
 to meet the new requirements.
 The final rule:
 • Implemented a net 1.65% market basket increase
           –  2.7% market basket increase 
–  (75 bps) Affordable Care Act reduction 
–  (30 bps) Affordable Care Act productivity reduction 
• Updated the outlier threshold
 • Updated wage index values and continued the second year of a 3-year
 phase in for IRFs transitioning from rural to urban designations
 Source: https://s3.amazonaws.com/public-inspection.federalregister.gov/2016-18196.pdf
 15
 Pricing: 
• Net pricing impact to Encompass
 expected to be a reduction of
 approx. 3.6% for CY 2017 (see
 page 22)
 • The final rule requires the
 recalibration of case-mix weights and
 the conversion of outlier payments to
 a cost-per-unit methodology to be
 budget neutral for the industry.
 However, these changes will have a
 disproportionate impact on
 Encompass based on its patient mix.
     Quality:
 • Encompass will supplement
 existing processes and systems to
 meet the new requirements.
 HH-PPS Calendar Year 2017 Final Rule: Key Provisions
 New Quality Reporting
 Update to Payment Rates
 Company ObservationsThe final rule:
 • Implemented a net 2.5% market basket increase
            – 2.8% market basket increase 
– (30 bps) Affordable Care Act productivity reduction 
• Implemented the final year of the four-year phase-in of the ACA mandated
 rebasing adjustment. The net rebasing reduction is approximately (2.3%).
 • Implemented the second year of a three-year nominal case-mix coding
 intensity reduction adjustment of (0.9%)
 • Updated the outlier fixed-dollar loss ratio from 0.45 to 0.55
 • Recalibrated the case-mix weights to reflect current home health resource
 use and changes in utilization patterns
 • Converted outlier payments from a cost-per-visit to a cost-per-unit
 methodology, with “per-visit” rates converted into 15 minute “per-unit” rates
 CMS:
 • Adopted, for the CY 2018 payment determination, four measures to meet the
 requirements of the IMPACT Act:
  – Medicare Spending per Beneficiary (Claims Based);
  – Discharge to Community (Claims Based);
  – Potentially Preventable 30-Day Post-Discharge Readmission Measure
 (Claims Based); and 
 – Drug Regimen Review Conducted with Follow-Up for Identified Issues
 (Patient Assessment Based)
 • Removed 28 quality measures, beginning with CY 2017, and 6 process
 measures, beginning with CY 2018, due to CMS determining these measures
 have been “topped-out”
 Source: https://s3.amazonaws.com/public-inspection.federalregister.gov/2016-26290.pdf
 16
 Guidance 
Adjusted EBITDA(10) 
Adjusted Earnings per Share
 from Continuing Operations
 Attributable to HealthSouth(11)
 Net Operating Revenues Net Operating Revenues
 $3,850 million to $3,950 million
 Adjusted EBITDA(10) 
$800 million to $820 million
 Adjusted Earnings per Share
 from Continuing Operations
 Attributable to HealthSouth(11)
 $2.61 to $2.73
 $3,650 million to $3,700 million
 $785 million to $795 million
 $2.54 to $2.60
 2017
 Preliminary Guidance
 2016
 Guidance
 HealthSouth has not closed its books as of and for the year ended December 31, 2016. All 2016 amounts are estimates.
 Refer to pages 26-27 for end notes.
 Note: Adjusted earnings per share guidance for 2016 was increased
 from a range of $2.50 to $2.56 (last published on October 27, 2016)
 due primarily to share repurchases in the fourth quarter of 2016 and a
 decrease in stock compensation estimates.
 17
 Refer to pages xxx-xxx for end notes.
 Adjusted EBITDA(10) Guidance Bridge
 Net Operating Revenues
 $3,xxx million to $3,xxx million
 Adjusted EBITDA(x) 
$8xx million to $8xx million
 Adjusted Earnings per Share
 from Continuing Operations
 Attributable to HealthSouth(x)
 $x.xx to $x.xx
 2017
 2016
 Adjusted EBITDA
 Guidance Range
 Indirect
 Medical
 Education Adjustment
 in Q3 2016
 Growth
 from Operations
 Impact
 of 2017
 Home Health
 Rule
 Sale of
 Pediatric
 Home Health Business
 in Q4 2016
 2017
 Adjusted EBITDA
 Guidance Range
 u 2016 included the benefit of a retroactive indirect medical education (“IME”) adjustment of ~$4
 million, which will not repeat in 2017, at the former Reliant hospital in Woburn, MA.
 u The ~3.6% net pricing reduction to Encompass of the HH-PPS final rule creates an ~$21 million
 headwind to Adjusted EBITDA in 2017.*
 u Sold pediatric home health assets in Q4 2016; represented ~$2 million of Adjusted EBITDA in
 2016
 u See page 18 for a list of 2017 guidance considerations.
 $785 to
 $795
 $800 to
 $820
 $32 to $62
 ($4)
 ($2)
 ($21)(In Millions)
 HealthSouth has not closed its books as of and for the year ended December 31, 2016. All 2016 amounts are estimates.
 *Encompass' expectation for the CY2017 Medicare pricing reduction prior to the release of the HH-PPS rule was ~1.2%.
 Refer to pages 26-27 for end notes.
 2016 2017
 18
 2017 Guidance Considerations
 Inpatient Rehabilitation
 u Estimated 1.9% increase in Medicare
 pricing for Q1 through Q3; ~1.0% for Q4
 (see page 22)
 u Salary increase of ~3.0%
 u 2016 included the benefit of a retroactive
 indirect medical education (“IME”)
 adjustment of ~$4 million at the former
 Reliant hospital in Woburn, MA.
 u Bad debt expense of 1.8% to 2.0% of net
 operating revenues
 Home Health and Hospice
 u Estimated 3.6%, or ~$21 million, net
 Medicare pricing reduction for CY 2017
 (see page 22)
 u Salary increase of ~3.0%
 u Cost of implementation of the pre-claim
 review demonstration beginning in
 Florida on April 1, 2017; estimated
 incremental cost of $1.0 million to $1.5
 million in 2017
 u Inclusive of home health and hospice
 acquisitions in 2017
 u Sold pediatric home health assets in Q4
 2016; represented ~$2 million of Adjusted
 EBITDA in 2016
 Consolidated
 u Diluted share count of ~100 million shares
 u Tax rate of approximately 40%
 19
 Adjusted Free Cash Flow(12) and Tax Assumptions
 HealthSouth has not closed its books as of and for the year ended December 31, 2016. All 2016 amounts are estimates.
 Reconciliation to GAAP provided on page 25. Refer to pages 26-27 for end notes.
 Certain Cash Flow Items
 (In Millions)
 2015
 Actuals
 2016
 Estimates
 2017
 Assumptions
 • Cash interest expense
 (net of amortization of debt discounts and fees) $128.6 ~$160 $150 to $160
 • Cash payments for taxes, net
 of refunds $9.4 ~$35 $120 to $175
 • Working Capital and Other $69.2 $45 to $55 $50 to $70
 • Maintenance CAPEX $83.1 ~$105 $130 to $150
 • Dividends paid on preferred 
   stock(13) $3.1 $— $—
 • Adjusted Free Cash Flow $389.0 $430 to $450 $245 to $370
 u Tax Considerations:
  Increased 2016 estimate for
 cash taxes due to gain on
 sale of pediatric home health
 locations
  Federal NOL exhausted as of
 December 31, 2016*
 *  The Company has filed with the IRS for a tax accounting method change related to billings denied under pre-payment claims
 reviews. If accepted, the change would generate a gross federal NOL of ~$125 million. The 2017 assumption range for cash
 taxes reflects the Company's expectations with and without the acceptance of this change by the IRS.
 20 HealthSouth has not closed its books as of and for the year ended December 31, 2016. All 2016 amounts are estimates.Refer to pages 26-27 for end notes.
 Free Cash Flow Priorities
 (In Millions)
 2015 2016 2017
 Actuals Estimates Assumptions
 IRF bed expansions $20.8 ~$20 $30 to $40
 New IRF’s
     - De novos 47.8 ~75 85 to 105
     - Acquisitions 786.2 — TBD
     - Replacement hospitals — ~10 10 to 20
 New home health and hospice acquisitions 200.2 ~50 50 to 100
 $1,055.0 ~$155
 $175 to $265,
 excluding IRF
 acquisitions
 2015 2016 2017
 Actuals Estimates Assumptions
 Debt (borrowings) redemptions, net(14) $(1,060.3) ~$160 $TBD
 Cash dividends on common stock(15) 77.2 ~84 ~$87
 Common stock repurchases 45.3 ~64 TBD
 $(937.8) ~$308 $TBD
 Shareholder
 Distributions
 Growth
 in Core 
Business
 Debt 
Reduction
 Highest Priorit
 y
 Redeemed remaining outstanding principal
 of $176 million of 2022 Notes in 2016
 ~$96 million authorization remaining
 as of December 31, 2016
 Quarterly cash dividend currently set at
 $0.24 per common share
 21
 • Same-store IRF growth
 • New-store IRF growth (de novos and acquisitions)
 • Same-store home health and hospice growth
 • New-store home health and hospice growth (acquisitions)
 Core
 Growth
 Strong
 Balance Sheet
 Key 
Operational
 Initiatives
 Shareholder
 Distributions
 Opportunistic
 Growth
 Business Outlook 2017 to 2019(16)
 2017 2018 2019
 Business Model
 • Adjusted EBITDA CAGR: 5% - 9%* 
• Strong free cash flow generation
 • Quarterly cash dividends
 • Opportunistic repurchases
 -  (~$96 million authorization remaining as of December 31, 2016)
 • Develop and implement risk sharing strategies
 • Enhance clinical collaboration between HealthSouth and Encompass
 • Refine and expand clinical data analytics utilization to further improve patient outcomes
 • Leverage clinical expertise to increase stroke admissions
 • Complete installation of EMR and enhance utilization via continuous in-service upgrades
 • Target leverage of ~3.5x by
 year-end, subject to
 opportunities for creating
 shareholder value
 Strategy Componen
 t
 * This is a multi-year CAGR; annual results may fall outside the range.
 Refer to pages 26-27 for end notes.
 • Consider acquisitions of other complementary businesses
 • Target leverage of less than 3.5x, subject to opportunities for
 creating shareholder value
 22
 • 10% to15% annual episode
 growth
 • Includes $35-$40 million per 
annum in agency acquisitions
 Volume
 (Includes New Stores)
 Inpatient Rehabilitation Home Health & Hospice*
 Medicare Pricing
 Approx. 73% of Revenue Approx. 82% of Revenue
 FY 2017
 Q416-Q317
 FY 2018
 Q417-Q318(17)
 FY 2019
 Q418-Q319
 Mgmt. Estimate
 CY 2017
 Q117-Q417
 CY 2018
 Q118-Q418(17)
 CY 2019
 Q119-Q419
 Mgmt. Estimate
 Market basket update 2.7% 1.0% 3.3% 2.8% 1.0% 3.1%
 Healthcare reform reduction (75) bps - (75) bps - - -
 Healthcare reform rebasing
 adjustment - - - (2.3%) -
 Coding intensity reduction - - - (0.9%) (0.9%) -
 Expiration of rural add-on - - - - Approx.(0.7%) -
 Healthcare reform productivity
 adjustment  (30) bps - (100) bps  (30) bps - (100) bps
 Net impact - all providers 1.65% 1.0% 1.55% (0.7%) (0.6%) 2.1%
 Outlier fixed dollar loss adjustment - - - (0.1%) - -
 Impact from case mix re-weighting - - - (0.9%) - -
 Impact from change in outlier
 calculation - - - (1.9%) - -
 Estimated impact to HealthSouth(18) 1.9% (3.6%)
 Medicare Advantage 
& Managed Care Pricing
 Approx. 19% of Revenue Approx. 13% of Revenue
 Expected Increases 2-4% 2-4% 2-4% 0-2% 0-2% 0-2%
 Business Outlook 2017 to 2019: Revenue Assumptions
 • 3+% annual discharge growth • 10+% annual episode growth
 * In Q4 2016, Encompass sold its pediatric home health assets. As a result of this sale, the Company expects its percentage 
of Medicare in the above chart to increase by approximately 300 basis points with the offset in Medicaid going forward.
 Refer to pages 26-27 for end notes.
 23
 Inpatient Rehabilitation Home Health and Hospice
 Business Outlook 2017 to 2019: Labor and Other Expense Assumptions
 Salaries 
& Benefits
 ~70%
 Hospital
 Expenses
 ~30%
 Salaries and Benefits 2017 2018 2019
 Salary increases 2.75-3.25% 2.75-3.25% 2.75-3.25%
 Benefit costs increases 5-10% 5-10% 5-10%
 Hospital Expenses
 • Other operating expenses and supply
 costs tracking with inflation
 Salaries 
& Benefits
 ~85%
 Other
 Expenses
 ~15%
 Home Health Expenses
 • Other operating expenses and supply
 costs tracking with inflation
 Percent of Salaries & Benefits
 Salaries ~ 90%
 Benefits ~10%
 24
 Appendix
 25
 Reconciliation of Net Cash Provided by Operating
 Activities to Adjusted Free Cash Flow(12) 
Full
 Year
 ($millions) 2015
 Net cash provided by operating activities $ 484.8
 Impact of discontinued operations 0.7
 Net cash provided by operating activities of continuing operations 485.5
 Capital expenditures for maintenance (83.1)
 Dividends paid on convertible perpetual preferred stock(13) (3.1)
 Distributions paid to noncontrolling interests of consolidated affiliates (54.4)
 Items non-indicative of ongoing operations:
 Cash paid for professional fees - accounting, tax, and legal 4.1
 Transaction costs and related assumed liabilities 28.3
 Net premium on bond issuance/repayment 4.0
 Cash paid for government, class action, and related settlements 7.7
 Adjusted free cash flow $ 389.0
 Cash dividends on common stock $ 77.2
 Refer to pages 26-27 for end notes.
 26
 (1) Data compares HealthSouth hospitals to hospitals comprising the Uniform Data System for Medical Rehabilitation (“UDSMR”), a data gathering and
 analysis organization for the rehabilitation industry which represents approximately 70% of the industry, including HealthSouth sites. Data is adjusted by
 applying HealthSouth hospital case-mix to non-HealthSouth UDS hospitals.
 (2) Source: https://data.medicare.gov/data/home-health-compare. Data on this page was published in October 2016 and reflects OASIS and HHCAHPS
 Survey data collected from April 2015 through March 2016 and claims-based data collected from January 2015 through December 2015.
 (3) Source: FY 2017 CMS Final Rule Rate Setting File and the last publicly available Medicare cost reports (FYE 2014/2015) or in the case of new IRFs, the
 June 2016 CMS Provider of Service File. 
a. All data provided was filtered and compiled from the Centers for Medicare and Medicaid Services (CMS) Fiscal Year 2017 IRF Final Rule Rate
 Setting File found at https://www.cms.gov/Medicare/Medicare-Fee-for-Service-Payment/InpatientRehabFacPPS/Downloads/
 FY2017_datafiles_final.zip. The data presented was developed entirely by CMS 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.
 b.The CMS file contains data for each of the 1,133 inpatient rehabilitation facilities used to estimate the policy updates for the FY 2017 IRF-PPS Final
 Rule. Most of the data represents historical information from the CMS fiscal year 2015 period and may or may not reflect the same HealthSouth
 hospitals in operation today. The data presented was separated into three categories: Freestanding, Units, and HealthSouth. HealthSouth is a
 subset of Freestanding and the Total.
 (4) The 119 for HLS excludes the inpatient rehabilitation hospital at HealthSouth Rehabilitation Hospital of Franklin (opened December 2015); CHI St.
 Vincent Hot Springs Rehabilitation Hospital, an affiliate of HealthSouth (opened February 2016); HealthSouth Rehabilitation Hospital of Beaumont (sold
 June 2016); St. Joseph HealthSouth Rehabilitation Hospital (opened August 2016); St. John Rehabilitation Hospital, affiliated with HealthSouth (opened
 August 2016); and HealthSouth Rehabilitation Hospital of Modesto (opened October 2016).
 (5) In 2015, HealthSouth averaged 1,332 total Medicare and non-Medicare discharges per hospital in its then 107 consolidated hospitals that were open the
 full year.
 (6) Case Mix Index (CMI) from the rate-setting file is adjusted for short-stay transfer cases. HealthSouth’s unadjusted CMI for 2015 was 1.36 versus 1.31 for
 the industry as measured by UDSMR.
 (7) The Budget Control Act of 2011 included a reduction of up to 2% to Medicare payments for all providers that began on April 1, 2013 (as modified by
 H.R. 8). The reduction was made from whatever level of payment would otherwise have been provided under Medicare law and regulation.
 (8) Excludes disposal of 61 beds at Beaumont, TX (sold June 2016) and 83 beds at Austin, TX (closed August 2016)
 (9) Excludes closure of home health location in Sea Pines, Florida (closed March 2016)
 (10) Adjusted EBITDA is a non-GAAP financial measure. The Company’s leverage ratio (total consolidated debt to Adjusted EBITDA for the trailing four
 quarters) is, likewise, a non-GAAP measure. Management and some members of the investment community utilize Adjusted EBITDA as a financial
 measure and the leverage ratio as a liquidity measure on an ongoing basis. These measures are not recognized in accordance with GAAP and should
 not be viewed as an alternative to GAAP measures of performance or liquidity. In evaluating Adjusted EBITDA, the reader should be aware that in the
 future HealthSouth may incur expenses similar to the adjustments set forth. Further explanation and disclosure relating to the Adjusted EBITDA amounts
 appearing in this presentation are included in the Company's Form 8-K, dated January 9, 2017, to which this presentation is attached as Exhibit 99.1.
 End Notes
 27
 (11) HealthSouth provides adjusted earnings per share from continuing operations attributable to HealthSouth (“adjusted EPS”), which is a non-GAAP measure. The
 Company believes the presentation of adjusted EPS provides useful additional information to investors because it provides better comparability of ongoing
 performance to prior periods given that it excludes the impact of government, class action, and related settlements; professional fees - accounting, tax, and
 legal; mark-to-market adjustments for stock appreciation rights; gains or losses related to hedging instruments; loss on early extinguishment of debt;
 adjustments to its income tax provision (such as valuation allowance adjustments and settlements of income tax claims); items related to corporate and facility
 restructurings; and certain other items deemed to be non-indicative of ongoing operations. It is reasonable to expect that one or more of these excluded items
 will occur in future periods, but the amounts recognized can vary significantly from period to period and may not directly relate to the Company's ongoing
 operations. Accordingly, they can complicate comparisons of the Company's results of operations across periods and comparisons of the Company's results to
 those of other healthcare companies. Adjusted EPS should not be considered as a measure of financial performance under generally accepted accounting
 principles in the United States as the items excluded from it are significant components in understanding and assessing financial performance. Because
 adjusted earnings per share is not a measurement determined in accordance with GAAP and is thus susceptible to varying calculations, it may not be
 comparative to other similarly titled measures of other companies.
 (12) Definition of adjusted free cash flow, which is a non-GAAP measure, is net cash provided by operating activities of continuing operations minus capital
 expenditures for maintenance, dividends paid on preferred stock, distributions to noncontrolling interests, and certain other items deemed to be non-indicative of
 ongoing cash flows. Common stock dividends are not included in the calculation of adjusted free cash flow.
 (13) In March 2006, the Company completed the sale of 400,000 shares of its 6.5% Series A Convertible Perpetual Preferred Stock. In Q4 2013, the Company
 exchanged $320 million of newly issued 2.0% Convertible Senior Subordinated Notes due 2043 for 257,110 shares of its outstanding preferred stock. In April
 2015, the Company exercised its rights to force conversion of all outstanding shares of its preferred stock. On the conversion date, each outstanding share of
 preferred stock was converted into 33.9905 shares of common stock, resulting in the issuance of 3,271,415 shares of common stock.
 (14) 2015 amounts for debt borrowings included ~$208 million related to the Reliant hospitals' capital lease obligations.
 (15) On July 16, 2015, the board of directors approved a $0.02 per share, or 9.5%, increase to the quarterly cash dividend on the Company’s common stock,
 bringing the quarterly cash dividend to $0.23 per common share. On July 21, 2016, the board of directors approved a $0.01 per share, or 4.3%, increase to the
 quarterly cash dividend on the Company’s common stock, bringing the quarterly cash dividend to $0.24 per common share.
 (16) If legislation affecting Medicare is passed, HealthSouth will evaluate its effect on its business model.
 (17) The Medicare Access and CHIP Reauthorization Act of 2015 mandated a market basket update of +1.0% in 2018 for post-acute providers including
 rehabilitation hospitals as well as home health and hospice agencies.
 (18) The Company estimates the expected impact of each rule utilizing, among other things, the acuity of its patients over the 8-month (home health
 segment) to 12-month (inpatient rehabilitation segment) period prior to each rule’s release and incorporates other adjustments included in each rule.
 These estimates are prior to the impact of sequestration.
 End Notes