|                                |
|--------------------------------|
|                                |  |
| Media Contact                  | July 28, 2014 |
| Casey Lassiter, 205-410-2777   | For Immediate Release |
| casey.lassiter@healthsouth.com |   |
|                           |   |
| Investor Relations Contact     |   |
| Mary Ann Arico, 205-969-6175   |   |
| maryann.arico@healthsouth.com  |   |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Consolidated net operating revenues were $604.4 million for the second quarter of 2014 compared to $564.5 million for the second quarter of 2013, or an increase of 7.1%. This increase was attributable to a 3.0% increase in patient discharges and a 4.9% increase in net patient revenue per discharge. Discharge growth included a 1.4% increase in same-store discharges. Approximately 60 basis points of discharge growth from new stores resulted from the consolidation of Fairlawn Rehabilitation Hospital (“Fairlawn”) in Worcester, Massachusetts effective June 1, 2014, as discussed below. The increase in net patient revenue per discharge resulted from price adjustments, higher average acuity for the patients served, and contributions from hospitals that opened in the second quarter of 2013 and were undergoing Medicare certification. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Income from continuing operations attributable to HealthSouth per diluted share for the second quarter of 2014 was $0.81 per share compared to $1.66 per share for the second quarter of 2013. Earnings per share for the second quarter of 2014 included strong operating results and the $27.2 million, or $0.27 per diluted share, nontaxable gain related to the increase in ownership and consolidation of Fairlawn. Earnings per share for the second quarter of 2013 included a $1.15 per diluted share benefit associated with a settlement with the Internal Revenue Service. |

|         |                                                                                                                                                                                                                                                                                                     |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Cash flows provided by operating activities were $235.1 million for the six months ended June 30, 2014 compared to $226.8 million for the six months ended June 30, 2013. This increase was primarily due to increased net operating revenues and continued disciplined expense management. |

|         |                                                                                                                                                                                                                                |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Adjusted EBITDA (see attached supplemental information) for the second quarter of 2014 was $152.7 million compared to $134.5 million for the second quarter of 2013, or an increase of 13.5%. This improvement was due |

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|   |   | 1 |

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|         |                                                                                                                                                                                                                                                                                                                                                 |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Adjusted free cash flow (see attached supplemental information) for the second quarter of 2014 was $97.9 million compared to $72.5 million for the second quarter of 2013. Adjusted free cash flow for the second quarter of 2014 benefited from higher Adjusted EBITDA, lower working capital, and a reduction in preferred dividends. |

|         |                                                                                                                                              |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------|
| • | raising its full-year 2014 Adjusted EBITDA guidance to a range of $570 million to $580 million from a range of $555 million to $565 million. |

|         |                                                                                                                                                                                    |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | raising its full-year 2014 guidance for income from continuing operations attributable to HealthSouth per diluted share to $2.25 to $2.31 per share from $1.86 to $1.91 per share. |

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|   |   | 2 |

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|                                                                       |
|-----------------------------------------------------------------------|
|                                                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                  | Three Months Ended June 30, |   | Six Months Ended June 30, |
|                                                                  | 2014 |   | 2013 |   | 2014 |   | 2013 |
|                                                                  | (In Millions) |
| Net operating revenues                                                | $ | 604.4 |  |   | $ | 564.5 |  |   | $ | 1,195.6 |  |   | $ | 1,137.1 |  |
| Less: Provision for doubtful accounts                                 | (9.3 | ) |   | (7.0 | ) |   | (16.8 | ) |   | (14.4 | ) |
| Net operating revenues less provision for doubtful accounts           | 595.1 |  |   | 557.5 |  |   | 1,178.8 |  |   | 1,122.7 |  |
| Operating expenses:                                                   |   |  |   |   |  |   |   |   |   |
| Salaries and benefits                                                 | 285.3 |  |   | 273.6 |  |   | 571.4 |  |   | 548.2 |  |
| Other operating expenses                                              | 86.3 |  |   | 81.0 |  |   | 170.8 |  |   | 159.1 |  |
| Occupancy costs                                                       | 10.3 |  |   | 11.9 |  |   | 20.8 |  |   | 24.1 |  |
| Supplies                                                              | 27.8 |  |   | 26.6 |  |   | 55.4 |  |   | 52.8 |  |
| General and administrative expenses                                   | 30.2 |  |   | 29.5 |  |   | 60.9 |  |   | 59.7 |  |
| Depreciation and amortization                                         | 26.4 |  |   | 23.1 |  |   | 52.8 |  |   | 45.2 |  |
| Government, class action, and related settlements                     | (0.8 | ) |   | (2.0 | ) |   | (0.8 | ) |   | (2.0 | ) |
| Professional fees—accounting, tax, and legal                    | 2.0 |  |   | 2.2 |  |   | 3.6 |  |   | 3.6 |  |
| Total operating expenses                                              | 467.5 |  |   | 445.9 |  |   | 934.9 |  |   | 890.7 |  |
| Interest expense and amortization of debt discounts and fees          | 27.8 |  |   | 24.4 |  |   | 55.7 |  |   | 48.6 |  |
| Other income                                                          | (28.2 | ) |   | (1.9 | ) |   | (29.9 | ) |   | (2.6 | ) |
| Equity in net income of nonconsolidated affiliates                    | (2.6 | ) |   | (3.3 | ) |   | (6.9 | ) |   | (6.2 | ) |
| Income from continuing operations before income tax expense (benefit) | 130.6 |  |   | 92.4 |  |   | 225.0 |  |   | 192.2 |  |
| Provision for income tax expense (benefit)                            | 36.5 |  |   | (86.5 | ) |   | 69.3 |  |   | (53.0 | ) |
| Income from continuing operations                                     | 94.1 |  |   | 178.9 |  |   | 155.7 |  |   | 245.2 |  |
| Income (loss) from discontinued operations, net of tax                | 3.8 |  |   | 0.1 |  |   | 3.7 |  |   | (0.3 | ) |
| Net income                                                            | 97.9 |  |   | 179.0 |  |   | 159.4 |  |   | 244.9 |  |
| Less: Net income attributable to noncontrolling interests             | (14.8 | ) |   | (13.8 | ) |   | (29.6 | ) |   | (28.4 | ) |
| Net income attributable to HealthSouth                                | 83.1 |  |   | 165.2 |  |   | 129.8 |  |   | 216.5 |  |
| Less: Convertible perpetual preferred stock dividends                 | (1.5 | ) |   | (5.8 | ) |   | (3.1 | ) |   | (11.5 | ) |
| Net income attributable to HealthSouth common shareholders            | $ | 81.6 |  |   | $ | 159.4 |  |   | $ | 126.7 |  |   | $ | 205.0 |  |

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|   | (Continued) | 4 |

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|                                                                             |
|-----------------------------------------------------------------------------|
|                                                                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                        | Three Months Ended June 30, |   | Six Months Ended June 30, |
|                                                                        | 2014 |   | 2013 |   | 2014 |   | 2013 |
|                                                                        | (In Millions, Except Per Share Data) |
| Weighted average common shares outstanding:                                 |   |  |   |   |  |   |   |   |   |
| Basic                                                                       | 86.7 |  |   | 86.1 |  |   | 87.0 |  |   | 90.0 |  |
| Diluted                                                                     | 100.6 |  |   | 99.8 |  |   | 100.8 |  |   | 103.4 |  |
|                                                                        |   |   |   |   |   |   |   |
| Earnings per common share:                                                  |   |   |   |   |   |   |   |
| Basic earnings per share attributable to HealthSouth common shareholders:   |   |   |   |  |   |   |   |   |
| Continuing operations                                                       | $ | 0.89 |  |   | $ | 1.82 |  |   | $ | 1.40 |  |   | $ | 2.24 |  |
| Discontinued operations                                                     | 0.04 |  |   | — |  |   | 0.04 |  |   | — |  |
| Net income                                                                  | $ | 0.93 |  |   | $ | 1.82 |  |   | $ | 1.44 |  |   | $ | 2.24 |  |
| Diluted earnings per share attributable to HealthSouth common shareholders: |   |   |   |   |   |   |   |
| Continuing operations                                                       | $ | 0.81 |  |   | $ | 1.66 |  |   | $ | 1.29 |  |   | $ | 2.09 |  |
| Discontinued operations                                                     | 0.04 |  |   | — |  |   | 0.04 |  |   | — |  |
| Net income                                                                  | $ | 0.85 |  |   | $ | 1.66 |  |   | $ | 1.33 |  |   | $ | 2.09 |  |
|                                                                        |   |   |   |   |   |   |   |
| Cash dividends per common share                                             | $ | 0.18 |  |   | $ | — |  |   | $ | 0.36 |  |   | $ | — |  |
|                                                                        |   |   |   |   |   |   |   |
| Amounts attributable to HealthSouth common shareholders:                    |   |   |   |  |   |   |   |   |
| Income from continuing operations                                           | $ | 79.3 |  |   | $ | 165.1 |  |   | $ | 126.1 |  |   | $ | 216.8 |  |
| Income (loss) from discontinued operations, net of tax                      | 3.8 |  |   | 0.1 |  |   | 3.7 |  |   | (0.3 | ) |
| Net income attributable to HealthSouth                                      | $ | 83.1 |  |   | $ | 165.2 |  |   | $ | 129.8 |  |   | $ | 216.5 |  |

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|   |   | 5 |

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|                                                                                                  |
|--------------------------------------------------------------------------------------------------|
|                                                                                                  |  |  |  |  |  |  |  |
|                                                                                             | June 30, 2014 |   | December 31, 2013 |
|                                                                                             | (In Millions) |
| Assets                                                                                           |   |   |   |
| Current assets:                                                                                  |   |   |   |
| Cash and cash equivalents                                                                        | $ | 65.8 |  |   | $ | 64.5 |  |
| Accounts receivable, net of allowance for doubtful accounts of $24.8 in 2014; $23.1 in 2013 | 272.3 |  |   | 261.8 |  |
| Deferred income tax assets                                                                       | 138.9 |  |   | 139.0 |  |
| Other current assets                                                                             | 103.9 |  |   | 115.1 |  |
| Total current assets                                                                             | 580.9 |  |   | 580.4 |  |
| Property and equipment, net                                                                      | 976.5 |  |   | 910.5 |  |
| Goodwill                                                                                         | 491.7 |  |   | 456.9 |  |
| Intangible assets, net                                                                           | 103.3 |  |   | 88.2 |  |
| Deferred income tax assets                                                                       | 276.1 |  |   | 354.3 |  |
| Other long-term assets                                                                           | 148.0 |  |   | 144.1 |  |
| Total assets                                                                                     | $ | 2,576.5 |  |   | $ | 2,534.4 |  |
| Liabilities and Shareholders’ Equity                                                       |   |   |   |
| Current liabilities:                                                                             |   |   |   |
| Accounts payable                                                                                 | $ | 55.7 |  |   | $ | 61.9 |  |
| Accrued expenses and other current liabilities                                                   | 243.6 |  |   | 249.7 |  |
| Total current liabilities                                                                        | 299.3 |  |   | 311.6 |  |
| Long-term debt, net of current portion                                                           | 1,475.1 |  |   | 1,505.2 |  |
| Other long-term liabilities                                                                      | 141.1 |  |   | 142.2 |  |
|                                                                                             | 1,915.5 |  |   | 1,959.0 |  |
| Commitments and contingencies                                                                    |  |  |   |  |  |
| Convertible perpetual preferred stock                                                            | 93.2 |  |   | 93.2 |  |
| Redeemable noncontrolling interests                                                              | 12.4 |  |   | 13.5 |  |
| Shareholders’ equity:                                                                      |   |  |   |   |  |
| HealthSouth shareholders’ equity                                                           | 413.7 |  |   | 344.6 |  |
| Noncontrolling interests                                                                         | 141.7 |  |   | 124.1 |  |
| Total shareholders’ equity                                                                 | 555.4 |  |   | 468.7 |  |
| Total liabilities and shareholders’ equity                                                 | $ | 2,576.5 |  |   | $ | 2,534.4 |  |

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|   |   | 6 |

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|                                                                                         |
|-----------------------------------------------------------------------------------------|
|                                                                                         |  |  |  |  |  |  |  |
|                                                                                    | Six Months Ended June 30, |
|                                                                                    | 2014 |   | 2013 |
|                                                                                    | (In Millions) |
| Cash flows from operating activities:                                                   |   |   |   |
| Net income                                                                              | $ | 159.4 |  |   | $ | 244.9 |  |
| (Income) loss from discontinued operations                                              | (3.7 | ) |   | 0.3 |  |
| Adjustments to reconcile net income to net cash provided by operating activities— |   |  |   |   |  |
| Provision for doubtful accounts                                                         | 16.8 |  |   | 14.4 |  |
| Depreciation and amortization                                                           | 52.8 |  |   | 45.2 |  |
| Equity in net income of nonconsolidated affiliates                                      | (6.9 | ) |   | (6.2 | ) |
| Distributions from nonconsolidated affiliates                                           | 6.5 |  |   | 5.0 |  |
| Stock-based compensation                                                                | 14.3 |  |   | 12.8 |  |
| Deferred tax expense (benefit)                                                          | 62.7 |  |   | (53.5 | ) |
| Gain on consolidation of Fairlawn Rehabilitation Hospital                               | (27.2 | ) |   | — |  |
| Other                                                                                   | 6.1 |  |   | 0.3 |  |
| (Increase) decrease in assets—                                                    |   |   |   |  |
| Accounts receivable                                                                     | (35.6 | ) |   | (38.8 | ) |
| Other assets                                                                            | 8.4 |  |   | (0.7 | ) |
| Increase (decrease) in liabilities—                                               |   |   |   |  |
| Accounts payable                                                                        | 2.7 |  |   | 9.5 |  |
| Other liabilities                                                                       | (20.0 | ) |   | (6.2 | ) |
| Net cash used in operating activities of discontinued operations                        | (1.2 | ) |   | (0.2 | ) |
| Total adjustments                                                                       | 79.4 |  |   | (18.4 | ) |
| Net cash provided by operating activities                                               | 235.1 |  |   | 226.8 |  |
| Cash flows from investing activities:                                                   |   |   |   |
| Purchases of property and equipment                                                     | (89.5 | ) |   | (69.0 | ) |
| Capitalized software costs                                                              | (11.0 | ) |   | (11.9 | ) |
| Acquisition of business, net of cash acquired                                           | (15.9 | ) |   | (28.9 | ) |
| Other                                                                                   | 9.4 |  |   | 8.4 |  |
| Net cash used in investing activities                                                   | (107.0 | ) |   | (101.4 | ) |
| Cash flows from financing activities:                                                   |   |   |   |
| Borrowings on revolving credit facility                                                 | 65.0 |  |   | 132.0 |  |
| Payments on revolving credit facility                                                   | (95.0 | ) |   | (59.0 | ) |
| Repurchases of common stock, including fees and expenses                                | (43.1 | ) |   | (234.1 | ) |
| Dividends paid on common stock                                                          | (31.6 | ) |   | — |  |
| Dividends paid on convertible perpetual preferred stock                                 | (3.1 | ) |   | (11.5 | ) |
| Distributions paid to noncontrolling interests of consolidated affiliates               | (25.4 | ) |   | (23.9 | ) |
| Other                                                                                   | 6.4 |  |   | 7.0 |  |
| Net cash used in financing activities                                                   | (126.8 | ) |   | (189.5 | ) |
| Increase (decrease) in cash and cash equivalents                                        | 1.3 |  |   | (64.1 | ) |
| Cash and cash equivalents at beginning of period                                        | 64.5 |  |   | 132.8 |  |
| Cash and cash equivalents at end of period                                              | $ | 65.8 |  |   | $ | 68.7 |  |

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|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |  |  |  |  |
|                                                         | QTD |   |
|                                                         | Q2 2014 |   | Q2 2013 |   |
|                                                         | (In Millions, Except Per Share Data) |   |
| Adjusted EBITDA                                              | $ | 152.7 |  |   | $ | 134.5 |  |   |
| Interest expense and amortization of debt discounts and fees | (27.8 | ) |   | (24.4 | ) |   |
| Depreciation and amortization                                | (26.4 | ) |   | (23.1 | ) |   |
| Stock-based compensation expense                             | (7.0 | ) |   | (6.5 | ) |   |
| Noncash loss on disposal of assets                           | (1.7 | ) |   | (1.7 | ) |   |
|                                                         | 89.8 |  |   | 78.8 |  |   |
| Certain nonrecurring expenses:                               |   |   |   |   |
| Government, class action, and related settlements            | 0.8 |  |   | 2.0 |  |   |
| Professional fees—accounting, tax, and legal           | (2.0 | ) |   | (2.2 | ) |   |
| Gain on consolidation of Fairlawn Rehabilitation Hospital    | 27.2 |  |   | — |  |   |
| Pre-tax income                                               | 115.8 |  |   | 78.6 |  |   |
| Income tax (expense) benefit (1)                             | (36.5 | ) | (2)  | 86.5 |  | (3)  |
| Income from continuing operations (4)                        | $ | 79.3 |  |   | $ | 165.1 |  |   |
|                                                         |   |   |   |   |
| Basic shares                                                 | 86.7 |  |   | 86.1 |  |   |
| Diluted shares                                               | 100.6 |  |   | 99.8 |  |   |
|                                                         |   |   |   |   |
| Basic earnings per share (4)                                 | $ | 0.89 |  |   | $ | 1.82 |  |   |
| Diluted earnings per share (4)                               | $ | 0.81 |  |   | $ | 1.66 |  |   |

|           |                                                                                                                                                        |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1)  | Current income tax expense (benefit) for the three months ended June 30, 2014 and 2013 was $3.0 million and ($1.3) million, respectively. |

|           |                                                                                                                                                                                                                                      |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2)  | The Company's effective income tax rate was reduced as a result of the nontaxable gain related to its acquisition of an additional 30% equity interest in Fairlawn Rehabilitation Hospital, as discussed elsewhere in this document. |

|           |                                                                                                                                                                                                                                                                            |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (3)  | Includes an approximate $115 million, or $1.15 per diluted share, benefit related to the Company's settlement with the IRS related to the previous restatement of its 2000 and 2001 financial statements, as well as certain other tax matters, through December 31, 2008. |

|           |                                                                |
|-----------|----------------------------------------------------------------|
| (4)  | Income from continuing operations attributable to HealthSouth. |

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|   |   | 8 |

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|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |  |  |  |  |
|                                                         | YTD |   |
|                                                         | Q2 2014 |   | Q2 2013 |   |
|                                                         | (In Millions, Except Per Share Data) |   |
| Adjusted EBITDA                                              | $ | 296.8 |  |   | $ | 273.8 |  |   |
| Interest expense and amortization of debt discounts and fees | (55.7 | ) |   | (48.6 | ) |   |
| Depreciation and amortization                                | (52.8 | ) |   | (45.2 | ) |   |
| Stock-based compensation expense                             | (14.3 | ) |   | (12.8 | ) |   |
| Noncash loss on disposal or impairment of assets             | (3.0 | ) |   | (1.8 | ) |   |
|                                                         | 171.0 |  |   | 165.4 |  |   |
| Certain nonrecurring expenses:                               |   |   |   |   |
| Government, class action, and related settlements            | 0.8 |  |   | 2.0 |  |   |
| Professional fees—accounting, tax, and legal           | (3.6 | ) |   | (3.6 | ) |   |
| Gain on consolidation of Fairlawn Rehabilitation Hospital    | 27.2 |  |   | — |  |   |
| Pre-tax income                                               | 195.4 |  |   | 163.8 |  |   |
| Income tax (expense) benefit (1)                             | (69.3 | ) | (2)  | 53.0 |  | (3)  |
| Income from continuing operations (4)                        | $ | 126.1 |  |   | $ | 216.8 |  |   |
|                                                         |   |   |   |   |
| Basic shares                                                 | 87.0 |  |   | 90.0 |  |   |
| Diluted shares                                               | 100.8 |  |   | 103.4 |  |   |
|                                                         |   |   |   |   |
| Basic earnings per share (4)                                 | $ | 1.40 |  |   | $ | 2.24 |  |   |
| Diluted earnings per share (4)                               | $ | 1.29 |  |   | $ | 2.09 |  |   |

|           |                                                                                                                                          |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------|
| (1)  | Current income tax expense for the six months ended June 30, 2014 and 2013 was $6.6 million and $0.5 million, respectively. |

|           |                                                                                                                                                                                                                                      |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2)  | The Company's effective income tax rate was reduced as a result of the nontaxable gain related to its acquisition of an additional 30% equity interest in Fairlawn Rehabilitation Hospital, as discussed elsewhere in this document. |

|           |                                                                                                                                                                                                                                                                            |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (3)  | Includes an approximate $115 million, or $1.11 per diluted share, benefit related to the Company's settlement with the IRS related to the previous restatement of its 2000 and 2001 financial statements, as well as certain other tax matters, through December 31, 2008. |

|           |                                                                |
|-----------|----------------------------------------------------------------|
| (4)  | Income from continuing operations attributable to HealthSouth. |

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|   |   | 9 |

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|                                                                                     |
|-------------------------------------------------------------------------------------|
|                                                                                     |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                | Three Months Ended June 30, |   | Six Months Ended June 30, |
|                                                                                | 2014 |   | 2013 |   | 2014 |   | 2013 |
|                                                                                | (In Millions) |
| Net income                                                                          | $ | 97.9 |  |   | $ | 179.0 |  |   | $ | 159.4 |  |   | $ | 244.9 |  |
| (Income) loss from discontinued operations, net of tax, attributable to HealthSouth | (3.8 | ) |   | (0.1 | ) |   | (3.7 | ) |   | 0.3 |  |
| Provision for income tax expense (benefit)                                          | 36.5 |  |   | (86.5 | ) |   | 69.3 |  |   | (53.0 | ) |
| Interest expense and amortization of debt discounts and fees                        | 27.8 |  |   | 24.4 |  |   | 55.7 |  |   | 48.6 |  |
| Professional fees—accounting, tax, and legal                                  | 2.0 |  |   | 2.2 |  |   | 3.6 |  |   | 3.6 |  |
| Government, class action, and related settlements                                   | (0.8 | ) |   | (2.0 | ) |   | (0.8 | ) |   | (2.0 | ) |
| Net noncash loss on disposal or impairment of assets                                | 1.7 |  |   | 1.7 |  |   | 3.0 |  |   | 1.8 |  |
| Depreciation and amortization                                                       | 26.4 |  |   | 23.1 |  |   | 52.8 |  |   | 45.2 |  |
| Stock-based compensation expense                                                    | 7.0 |  |   | 6.5 |  |   | 14.3 |  |   | 12.8 |  |
| Net income attributable to noncontrolling interests                                 | (14.8 | ) |   | (13.8 | ) |   | (29.6 | ) |   | (28.4 | ) |
| Gain on consolidation of Fairlawn Rehabilitation Hospital                           | (27.2 | ) |   | — |  |   | (27.2 | ) |   | — |  |
| Adjusted EBITDA                                                                     | $ | 152.7 |  |   | $ | 134.5 |  |   | $ | 296.8 |  |   | $ | 273.8 |  |

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|   |   | 10 |

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|                                                                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                      | Three Months Ended June 30, |   | Six Months Ended June 30, |   | Year Ended December 31, |
|                                                                      |   |   |
|                                                                      | 2014 |   | 2013 |   | 2014 |   | 2013 |   | 2013 |
|                                                                      | (In Millions) |
| Net cash provided by operating activities                                 | $ | 128.0 |  |   | $ | 105.4 |  |   | $ | 235.1 |  |   | $ | 226.8 |  |   | $ | 470.3 |  |
| Impact of discontinued operations                                         | 1.0 |  |   | (0.5 | ) |   | 1.2 |  |   | 0.2 |  |   | 1.9 |  |
| Net cash provided by operating activities of continuing operations        | 129.0 |  |   | 104.9 |  |   | 236.3 |  |   | 227.0 |  |   | 472.2 |  |
| Capital expenditures for maintenance                                      | (17.6 | ) |   | (16.8 | ) |   | (47.8 | ) |   | (35.7 | ) |   | (74.8 | ) |
| Dividends paid on convertible perpetual preferred stock                   | (1.5 | ) |   | (5.8 | ) |   | (3.1 | ) |   | (11.5 | ) |   | (23.0 | ) |
| Distributions paid to noncontrolling interests of consolidated affiliates | (13.4 | ) |   | (10.7 | ) |   | (25.4 | ) |   | (23.9 | ) |   | (46.3 | ) |
| Nonrecurring items:                                                       |   |   |   |   |   |   |   |   |   |
| Premium paid on redemption of bonds                                       | — |  |   | — |  |   | — |  |   | — |  |   | 1.7 |  |
| Cash paid (received) for:                                                 |   |   |   |   |   |   |   |   |   |
| Professional fees—accounting, tax, and legal                        | 2.0 |  |   | 2.2 |  |   | 3.6 |  |   | 3.6 |  |   | 7.0 |  |
| Government, class action, and related settlements                         | (0.6 | ) |   | (1.3 | ) |   | (0.6 | ) |   | (1.3 | ) |   | (5.9 | ) |
| Adjusted free cash flow                                                   | $ | 97.9 |  |   | $ | 72.5 |  |   | $ | 163.0 |  |   | $ | 158.2 |  |   | $ | 330.9 |  |

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|   |   | 11 |

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|   |   | 12 |