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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. The Company continued to experience positive discharge growth and expects to report 3.8% and 5.0% discharge growth for the quarter and year ended December 31, 2013, respectively, compared to the same periods of 2012. The Company expects to report 2.5% new-store discharge growth for both the quarter and year ended December 31, 2013 compared to the same periods of 2012. The Company expects to report 1.3% and 2.5% same-store discharge growth for the quarter and year ended December 31, 2013, respectively, compared to the same periods of 2012. Same-store discharge growth for the quarter and year ended December 31, 2013 was negatively impacted by the divestiture of 41 skilled nursing facility beds in the first quarter of 2013. |

|         |                                                                                                                                                                                                      |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ▪ | Pricing. The Company expects an approximate 3.4% increase in net patient revenue per discharge before sequestration for the quarter ended December 31, 2013 compared to the same period of 2012. |

|         |                                                                                                                                                                                   |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ▪ | Adjusted EBITDA. In the fourth quarter of 2013, the Company expects an Adjusted EBITDA reduction of approximately $8 million, net of noncontrolling interests, for sequestration. |

|         |                                                                                                                                                                                            |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Salaries and Benefits. The fourth quarter of 2013 includes a 2.2% merit increase compared to an approximate $10 million bonus in lieu of a merit increase for the same period of 2012. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Taxes. The Company assumes a provision for income tax of approximately 40% for the quarter ended December 31, 2013. The Company's 2013 provision for income tax includes an approximate $115 million, or $1.31 per basic share, benefit related to the Company's previously disclosed settlement with the IRS in April 2013. Cash taxes are expected to be approximately $7 million for the year ended December 31, 2013. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                  |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Earnings per Share. For the year ended December 31, 2013, the Company's share count reflects the repurchase of approximately 9.1 million shares in the first quarter of 2013 through a tender offer. In the fourth quarter of 2013, the Company exchanged 257,110 shares of its 6.5% Series A Convertible Perpetual Preferred Stock for $320 million of new 2.0% Convertible Senior Subordinated Notes due 2043. |

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|                                         |
|-----------------------------------------|
|                                         |  |  |  |
| Certain Cash Flow Items                 | 2012 Actuals | 2013 Estimates | 2014 Assumptions |
|                                    | (In Millions) |   |
| Cash interest expense                   | $90.4 | $95 | $100 |
| Cash payments for taxes, net of refunds | $11.8 | $7 | $10 to $15 |
| Working capital and other               | $28.2 | $5 to $15 | $10 to $20 |
|                                    |   |   |   |
| Maintenance capital expenditures        | $83.0 | $87 | $80 to $90 |
| Dividends paid on preferred stock       | $24.6 | $23 | $6 |

|                                                                            |
|----------------------------------------------------------------------------|
|                                                                            |  |  |  |
|                                                                       | 2012 Actuals | 2013 Estimates | 2014 Assumptions |
| Growth in Core Business                                                    |   |   |   |
| Bed expansions (target approximately 80 beds/year) and unit consolidations | $16.6 | $25 | $20 to $30 |
| New IRF's (target 4-6/year)                                                | 41.1 | 56 | 45 to 75 |
|                                                                       | $57.7 | $81 | $65 to $105,excludingacquisitions |
| Debt Reduction                                                             |   |   |   |
| Debt pay down, net (1)                                                     | — | $(257) | N/A |
| Purchase leased properties (2)                                             | $19.1 | 90 | $15 to $20 |
|                                                                       |   |   |   |
| Shareholder Distribution                                                   |   |   |   |
| Convertible preferred stock repurchase (1)                                 | 46.5 | 248 | — |
| Cash dividends on common stock (3)                                         | — | 16 | 64 |
| Common stock repurchase ($200 million authorization) (4)                   | — | 234 | TBD |
|                                                                       | $65.6 | $331 | TBD |

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|                                                    |
|----------------------------------------------------|
|                                                    |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                               | Three Months Ended |   | Nine Months Ended |   |   |   |   |   |   |   |   |   |   |
|                                               | September 30, |   | September 30, |   | Year Ended December 31, |
|                                               | 2013 |   | 2012 |   | 2013 |   | 2012 |   | 2012 |   | 2011 |   | 2010 |   | 2009 |   | 2008 |
|                                               | (In Millions) |
| Net cash provided by operating activities          | $ | 142.6 |  |   | $ | 107.2 |  |   | $ | 369.4 |  |   | $ | 302.2 |  |   | $ | 411.5 |  |   | $ | 342.7 |  |   | $ | 331.0 |  |   | $ | 406.1 |  |   | $ | 227.2 |  |
| Provision for doubtful accounts                    | (8.0 | ) |   | (7.0 | ) |   | (22.4 | ) |   | (19.8 | ) |   | (27.0 | ) |   | (21.0 | ) |   | (16.4 | ) |   | (30.7 | ) |   | (23.0 | ) |
| Professional fees—accounting, tax, and legal | 4.2 |  |   | 4.1 |  |   | 7.8 |  |   | 13.2 |  |   | 16.1 |  |   | 21.0 |  |   | 17.2 |  |   | 8.8 |  |   | 44.4 |  |
| Interest expense and amortization of debt          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| discounts and fees                                 | 25.3 |  |   | 23.5 |  |   | 73.9 |  |   | 69.8 |  |   | 94.1 |  |   | 119.4 |  |   | 125.6 |  |   | 125.7 |  |   | 159.3 |  |
| UBS Settlement proceeds, gross                     | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | (100.0 | ) |   | — |  |
| Equity in net income of nonconsolidated            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| affiliates                                         | 2.0 |  |   | 3.3 |  |   | 8.2 |  |   | 9.7 |  |   | 12.7 |  |   | 12.0 |  |   | 10.1 |  |   | 4.6 |  |   | 10.6 |  |
| Net income attributable to noncontrolling          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  interests in continuing operations           | (14.1 | ) |   | (12.8 | ) |   | (42.5 | ) |   | (38.6 | ) |   | (50.9 | ) |   | (47.0 | ) |   | (40.9 | ) |   | (33.3 | ) |   | (29.8 | ) |
| Amortization of debt discounts and fees            | (1.0 | ) |   | (0.9 | ) |   | (3.0 | ) |   | (2.7 | ) |   | (3.7 | ) |   | (4.2 | ) |   | (6.3 | ) |   | (6.6 | ) |   | (6.5 | ) |
| Distributions from nonconsolidated affiliates      | (4.6 | ) |   | (2.4 | ) |   | (9.6 | ) |   | (7.9 | ) |   | (11.0 | ) |   | (13.0 | ) |   | (8.1 | ) |   | (8.6 | ) |   | (10.9 | ) |
| Current portion of income tax expense (benefit)    | 2.5 |  |   | (0.6 | ) |   | 3.0 |  |   | 3.7 |  |   | 5.9 |  |   | 0.6 |  |   | 2.9 |  |   | (7.0 | ) |   | (72.8 | ) |
| Change in assets and liabilities                   | (14.4 | ) |   | 10.4 |  |   | 21.8 |  |   | 48.8 |  |   | 58.1 |  |   | 41.4 |  |   | 5.7 |  |   | 9.1 |  |   | 58.0 |  |
| Net premium paid on bond                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| issuance/redemption                                | — |  |   | — |  |   | — |  |   | — |  |   | 1.9 |  |   | 22.8 |  |   | — |  |   | — |  |   | — |  |
| Net cash used in (provided by) operating           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| activities of discontinued operations              | 1.2 |  |   | 0.2 |  |   | 1.4 |  |   | (1.5 | ) |   | (2.0 | ) |   | (9.1 | ) |   | (13.2 | ) |   | (5.7 | ) |   | (32.5 | ) |
| Other, including realized losses and (gains)       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  on sales of investments                      | (0.2 | ) |   | 0.2 |  |   | 1.3 |  |   | 0.4 |  |   | 0.2 |  |   | 0.6 |  |   | 2.0 |  |   | 1.3 |  |   | (1.4 | ) |
| Adjusted EBITDA                                    | $ | 135.5 |  |   | $ | 125.2 |  |   | $ | 409.3 |  |   | $ | 377.3 |  |   | $ | 505.9 |  |   | $ | 466.2 |  |   | $ | 409.6 |  |   | $ | 363.7 |  |   | $ | 322.6 |  |

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|      |                                                                                                                                                                                   |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 99.1 | Conference Slides of HealthSouth Corporation used in connection with its January 14, 2014 presentation at the 32nd Annual J.P. Morgan Healthcare Conference in San Francisco. |

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