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|                          |
|--------------------------|
|                          |  |
| 001-10315                | 63-0860407 |
| (Commission File Number) | (IRS 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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|         |                                                                                                                                                                                                                                                                            |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Volume: As anticipated, discharge growth in October 2012 was positively impacted by an increased length of stay at the end of September which rolled discharges into October. Discharge growth in November and December is difficult to predict due to the holiday season. |

|         |                                                                                                                                                                                                                                                                           |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Storm Sandy: The bulk of the storm-related disruption was limited to two hospitals, our Toms River and Tintin Falls hospitals in New Jersey. The Company does not expect the storm to have a material effect on the Company's earnings in the fourth quarter of 2012. |

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|                                                    |
|----------------------------------------------------|
|                                                    |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                               | Three Months Ended |   | Nine Months Ended |   |   |   |   |   |   |   |   |   |   |
|                                               | September 30, |   | September 30, |   | Year Ended December 31, |
|                                               | 2012 |   | 2011 |   | 2012 |   | 2011 |   | 2011 |   | 2010 |   | 2009 |   | 2008 |   | 2007 |
|                                               | (In Millions) |
| Net cash provided by operating activities          | $ | 107.2 |  |   | $ | 55.1 |  |   | $ | 302.2 |  |   | $ | 213.2 |  |   | $ | 342.7 |  |   | $ | 331.0 |  |   | $ | 406.1 |  |   | $ | 227.2 |  |   | $ | 230.6 |  |
| Provision for doubtful accounts                    | (7.0 | ) |   | (5.1 | ) |   | (19.8 | ) |   | (14.9 | ) |   | (21.0 | ) |   | (16.4 | ) |   | (30.7 | ) |   | (23.0 | ) |   | (28.5 | ) |
| Professional fees—accounting, tax, and legal | 4.1 |  |   | 4.0 |  |   | 13.2 |  |   | 16.2 |  |   | 21.0 |  |   | 17.2 |  |   | 8.8 |  |   | 44.4 |  |   | 51.6 |  |
| Interest expense and amortization of debt          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| discounts and fees                                 | 23.5 |  |   | 26.3 |  |   | 69.8 |  |   | 96.3 |  |   | 119.4 |  |   | 125.6 |  |   | 125.7 |  |   | 159.3 |  |   | 229.2 |  |
| UBS Settlement proceeds, gross                     | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | (100.0 | ) |   | — |  |   | — |  |
| Equity in net income of nonconsolidated            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| affiliates                                         | 3.3 |  |   | 3.1 |  |   | 9.7 |  |   | 8.8 |  |   | 12.0 |  |   | 10.1 |  |   | 4.6 |  |   | 10.6 |  |   | 10.3 |  |
| Net income attributable to noncontrolling          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  interests in continuing operations           | (12.8 | ) |   | (11.4 | ) |   | (38.6 | ) |   | (34.5 | ) |   | (47.0 | ) |   | (40.9 | ) |   | (33.3 | ) |   | (29.8 | ) |   | (31.1 | ) |
| Amortization of debt discounts and fees            | (0.9 | ) |   | (0.9 | ) |   | (2.7 | ) |   | (3.3 | ) |   | (4.2 | ) |   | (6.3 | ) |   | (6.6 | ) |   | (6.5 | ) |   | (7.8 | ) |
| Distributions from nonconsolidated affiliates      | (2.4 | ) |   | (4.2 | ) |   | (7.9 | ) |   | (9.7 | ) |   | (13.0 | ) |   | (8.1 | ) |   | (8.6 | ) |   | (10.9 | ) |   | (5.3 | ) |
| Current portion of income tax (benefit) expense    | (0.6 | ) |   | (0.1 | ) |   | 3.7 |  |   | (1.5 | ) |   | 0.6 |  |   | 2.9 |  |   | (7.0 | ) |   | (72.8 | ) |   | (330.4 | ) |
| Change in assets and liabilities                   | 13.0 |  |   | 37.4 |  |   | 51.4 |  |   | 65.7 |  |   | 49.9 |  |   | 2.8 |  |   | (2.1 | ) |   | 50.6 |  |   | 5.5 |  |
| Net premium paid on bond                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| issuance/redemption                                | — |  |   | 8.9 |  |   | — |  |   | 22.8 |  |   | 22.8 |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Change in government, class action,                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and related settlements liability                  | (2.6 | ) |   | — |  |   | (2.6 | ) |   | (6.5 | ) |   | (8.5 | ) |   | 2.9 |  |   | 11.2 |  |   | 7.4 |  |   | 171.4 |  |
| Net cash used in (provided) by operating           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| activities of discontinued operations              | 0.2 |  |   | (2.2 | ) |   | (1.5 | ) |   | (9.4 | ) |   | (9.1 | ) |   | (13.2 | ) |   | (5.7 | ) |   | (32.5 | ) |   | (3.3 | ) |
| Other, including realized losses and (gains)       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  on sales of investments                      | 0.2 |  |   | (0.4 | ) |   | 0.4 |  |   | 0.1 |  |   | 0.6 |  |   | 2.0 |  |   | 1.3 |  |   | (1.4 | ) |   | 14.5 |  |
| Adjusted EBITDA                                    | $ | 125.2 |  |   | $ | 110.5 |  |   | $ | 377.3 |  |   | $ | 343.3 |  |   | $ | 466.2 |  |   | $ | 409.6 |  |   | $ | 363.7 |  |   | $ | 322.6 |  |   | $ | 306.7 |  |

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|      |                                                                                  |
|------|----------------------------------------------------------------------------------|
| 99.1 | HealthSouth Corporation Investor Reference Book - Post Q3 2012 Earnings Release. |

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