|                                 |
|---------------------------------|
|                                 |  |
| Media Contact                   | April 27, 2017 |
| Casey Lassiter, 205 641-1118    | For Immediate Release |
| casey.lassiter@healthsouth.com  |   |
|                            |   |
| Investor Relations Contact      |   |
| Crissy Carlisle, 205 970-5860   |   |
| crissy.carlisle@healthsouth.com |   |

|                                                                                 |
|---------------------------------------------------------------------------------|
|                                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                            |   |   |   |   | Growth |
|                                                                            | Q1 2017 |   | Q1 2016 |   | Dollars |   | Percent |
|                                                                            | (In Millions, Except per Share Data) |
| Net operating revenues                                                          | $ | 974.8 |  |   | $ | 909.8 |  |   | $ | 65.0 |  |   | 7.1 | % |
| Income from continuing operations attributable to HealthSouth per diluted share | 0.70 |  |   | 0.61 |  |   | 0.09 |  |   | 14.8 | % |
| Adjusted earnings per share                                                     | 0.70 |  |   | 0.61 |  |   | 0.09 |  |   | 14.8 | % |
| Cash flows provided by operating activities                                     | 180.8 |  |   | 169.6 |  |   | 11.2 |  |   | 6.6 | % |
| Adjusted EBITDA                                                                 | 200.8 |  |   | 192.1 |  |   | 8.7 |  |   | 4.5 | % |
| Adjusted free cash flow                                                         | 147.5 |  |   | 139.4 |  |   | 8.1 |  |   | 5.8 | % |

|        |
|--------|
|        |  |  |
|   |   | 1 |

----

|                                   |
|-----------------------------------|
|                                   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                              |   |   |   |   | Growth |
|                              | Q1 2017 |   | Q1 2016 |   | Dollars |   | Percent |
| Net operating revenues:           | (In Millions) |
| Inpatient                         | $ | 766.2 |  |   | $ | 719.4 |  |   | $ | 46.8 |  |   | 6.5 |  % |
| Outpatient and other              | 26.3 |  |   | 29.8 |  |   | (3.5 | ) |   | (11.7 | )% |
| Total segment revenue             | $ | 792.5 |  |   | $ | 749.2 |  |   | $ | 43.3 |  |   | 5.8 |  % |
|                              |   |   |   |   |   |   |   |
|                              | (Actual Amounts) |
| Discharges                        | 42,259 |  |   | 41,098 |  |   | 1,161 |  |   | 2.8 |  % |
| Same-store discharge growth       |   |   |   |   |   |   | 1.6 |  % |
| Net patient revenue per discharge | $ | 18,131 |  |   | $ | 17,505 |  |   | $ | 626 |  |   | 3.6 |  % |
|                              |   |   |   |   |   |   |   |
|                              | (In Millions) |
| Adjusted EBITDA                   | $ | 205.4 |  |   | $ | 196.9 |  |   | $ | 8.5 |  |   | 4.3 |  % |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Revenue - Revenue growth resulted from an increase in net patient revenue per discharge and volume growth. Growth in net patient revenue per discharge resulted primarily from patient mix (higher percentage of stroke and neurological patients). Same-store discharge growth of 2.8% in the first quarter of 2016 included approximately 80 to 100 basis points due to leap year. Discharge growth from new stores resulted from the Company's joint ventures in Hot Springs, Arkansas (February 2016), Bryan, Texas (August 2016), and Broken Arrow, Oklahoma (August 2016), as well as a wholly owned hospital in Modesto, California (October 2016). |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Adjusted EBITDA - The increase in Adjusted EBITDA for the inpatient rehabilitation segment resulted primarily from revenue growth. Salaries and benefits increased as a percent of net operating revenues primarily due to an increase in full-time equivalents. Full-time equivalents increased as a result of staffing increases at the former Reliant hospitals since their acquisition on October 1, 2015, a planned investment in additional clinical staff due to increased regulatory reporting requirements, and new stores. Hospital operating expenses as a percent of net operating revenues decreased 10 basis points year over year. Bad debt expense as a percent of net operating revenues decreased from 2.1% in the first quarter of 2016 to 1.9% in the first quarter of 2017 due primarily to the resolution of the administrative payment delays that impacted 2016 collections. |

|        |
|--------|
|        |  |  |
|   |   | 2 |

----

|                              |
|------------------------------|
|                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                         |   |   |   |   | Growth |
|                         | Q1 2017 |   | Q1 2016 |   | Dollars |   | Percent |
| Net operating revenues:      | (In Millions) |
| Home health                  | $ | 165.3 |  |   | $ | 150.9 |  |   | $ | 14.4 |  |   | 9.5 |  % |
| Hospice and other            | 17.0 |  |   | 9.7 |  |   | 7.3 |  |   | 75.3 |  % |
| Total segment revenue        | $ | 182.3 |  |   | $ | 160.6 |  |   | $ | 21.7 |  |   | 13.5 |  % |
|                         |   |   |   |   |   |   |   |
|                         | (Actual Amounts) |
| Admissions                   | 30,810 |  |   | 25,763 |  |   | 5,047 |  |   | 19.6 |  % |
| Same-store admissions growth |   |   |   |   |   |   | 13.9 |  % |
| Episodes                     | 49,260 |  |   | 43,844 |  |   | 5,416 |  |   | 12.4 |  % |
| Same-store episode growth    |   |   |   |   |   |   | 8.4 |  % |
| Revenue per episode          | $ | 2,991 |  |   | $ | 3,035 |  |   | $ | (44 | ) |   | (1.4 | )% |
|                         |   |   |   |   |   |   |   |
|                         | (In Millions) |
| Adjusted EBITDA              | $ | 23.9 |  |   | $ | 22.6 |  |   | $ | 1.3 |  |   | 5.8 |  % |

|         |                                                                                           |
|---------|-------------------------------------------------------------------------------------------|
| • | Revenue - Revenue growth resulted from strong same-store and new-store volume growth. |

|         |                                                                                                                                                                                                                                                              |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Adjusted EBITDA - Growth in Adjusted EBITDA resulted primarily from revenue growth. Adjusted EBITDA for the segment was impacted by higher cost per visit (driven by an increased percentage of therapy patients) and salary and benefit cost increases. |

|                                                                                    |
|------------------------------------------------------------------------------------|
|                                                                                    |  |
| Full-Year 2017 Guidance Ranges                                                     |
| (In Millions, Except Per Share Data)                                               |
| Net operating revenues                                                             | $3,850 to $3,950 |
| Adjusted EBITDA                                                                    | $800 to $820 |
| Adjusted earnings per share from continuing operations attributable to HealthSouth | $2.61 to $2.73 |

|        |
|--------|
|        |  |  |
|   |   | 3 |

----

|         |                                                                                      |
|---------|--------------------------------------------------------------------------------------|
| • | Provision for doubtful accounts - estimate of 1.8% to 2.0% of net operating revenues |

|         |                                                                                                         |
|---------|---------------------------------------------------------------------------------------------------------|
| • | Interest expense and amortization of debt discounts and fees - estimate of $165 million to $175 million |

|         |                                                                |
|---------|----------------------------------------------------------------|
| • | Amortization of debt-related items - approximately $15 million |

|        |
|--------|
|        |  |  |
|   |   | 4 |

----

|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |  |  |  |
|                                                         | Three Months Ended March 31, |
|                                                         | 2017 |   | 2016 |
|                                                         | (In Millions) |
| Net operating revenues                                       | $ | 974.8 |  |   | $ | 909.8 |  |
| Less: Provision for doubtful accounts                        | (16.4 | ) |   | (16.5 | ) |
| Net operating revenues less provision for doubtful accounts  | 958.4 |  |   | 893.3 |  |
| Operating expenses:                                          |   |  |   |   |  |
| Salaries and benefits                                        | 530.1 |  |   | 486.1 |  |
| Other operating expenses                                     | 129.1 |  |   | 119.2 |  |
| Occupancy costs                                              | 17.9 |  |   | 18.0 |  |
| Supplies                                                     | 37.0 |  |   | 35.0 |  |
| General and administrative expenses                          | 36.5 |  |   | 31.9 |  |
| Depreciation and amortization                                | 45.2 |  |   | 42.4 |  |
| Professional fees—accounting, tax, and legal           | — |  |   | 0.2 |  |
| Total operating expenses                                     | 795.8 |  |   | 732.8 |  |
| Loss on early extinguishment of debt                         | — |  |   | 2.4 |  |
| Interest expense and amortization of debt discounts and fees | 41.3 |  |   | 44.6 |  |
| Other income                                                 | (1.0 | ) |   | (0.6 | ) |
| Equity in net income of nonconsolidated affiliates           | (2.1 | ) |   | (2.4 | ) |
| Income from continuing operations before income tax expense  | 124.4 |  |   | 116.5 |  |
| Provision for income tax expense                             | 39.7 |  |   | 39.7 |  |
| Income from continuing operations                            | 84.7 |  |   | 76.8 |  |
| Loss from discontinued operations, net of tax                | (0.3 | ) |   | (0.1 | ) |
| Net income                                                   | 84.4 |  |   | 76.7 |  |
| Less: Net income attributable to noncontrolling interests    | (17.6 | ) |   | (18.7 | ) |
| Net income attributable to HealthSouth                       | $ | 66.8 |  |   | $ | 58.0 |  |

|        |
|--------|
|        |  |  |
|   | (Continued) | 5 |

----

|                                                                             |
|-----------------------------------------------------------------------------|
|                                                                             |  |  |  |  |  |  |  |
|                                                                        | Three Months Ended March 31, |
|                                                                        | 2017 |   | 2016 |
|                                                                        | (In Millions, Except Per Share Data) |
| Weighted average common shares outstanding:                                 |   |  |   |   |  |
| Basic                                                                       | 88.8 |  |   | 89.5 |  |
| Diluted                                                                     | 99.0 |  |   | 99.4 |  |
|                                                                        |   |   |   |
| Earnings per common share:                                                  |   |   |   |
| Basic earnings per share attributable to HealthSouth common shareholders:   |   |   |   |  |
| Continuing operations                                                       | $ | 0.75 |  |   | $ | 0.65 |  |
| Discontinued operations                                                     | — |  |   | — |  |
| Net income                                                                  | $ | 0.75 |  |   | $ | 0.65 |  |
| Diluted earnings per share attributable to HealthSouth common shareholders: |   |   |   |
| Continuing operations                                                       | $ | 0.70 |  |   | $ | 0.61 |  |
| Discontinued operations                                                     | — |  |   | — |  |
| Net income                                                                  | $ | 0.70 |  |   | $ | 0.61 |  |
|                                                                        |   |   |   |
| Cash dividends per common share                                             | $ | 0.24 |  |   | $ | 0.23 |  |
|                                                                        |   |   |   |
| Amounts attributable to HealthSouth common shareholders:                    |   |   |   |  |
| Income from continuing operations                                           | $ | 67.1 |  |   | $ | 58.1 |  |
| Loss from discontinued operations, net of tax                               | (0.3 | ) |   | (0.1 | ) |
| Net income attributable to HealthSouth                                      | $ | 66.8 |  |   | $ | 58.0 |  |

|        |
|--------|
|        |  |  |
|   |   | 6 |

----

|                                                                                             |
|---------------------------------------------------------------------------------------------|
|                                                                                             |  |  |  |  |  |  |  |
|                                                                                        | March 31, 2017 |   | December 31, 2016 |
|                                                                                        | (In Millions) |
| Assets                                                                                      |   |   |   |
| Current assets:                                                                             |   |   |   |
| Cash and cash equivalents                                                                   | $ | 61.2 |  |   | $ | 40.5 |  |
| Accounts receivable, net of allowance for doubtful accounts of $55.6 in 2017; $53.9 in 2016 | 438.0 |  |   | 443.8 |  |
| Other current assets                                                                        | 183.1 |  |   | 170.2 |  |
| Total current assets                                                                        | 682.3 |  |   | 654.5 |  |
| Property and equipment, net                                                                 | 1,406.1 |  |   | 1,391.8 |  |
| Goodwill                                                                                    | 1,931.4 |  |   | 1,927.2 |  |
| Intangible assets, net                                                                      | 404.4 |  |   | 411.3 |  |
| Deferred income tax assets                                                                  | 35.3 |  |   | 75.8 |  |
| Other long-term assets                                                                      | 244.3 |  |   | 221.3 |  |
| Total assets                                                                                | $ | 4,703.8 |  |   | $ | 4,681.9 |  |
| Liabilities and Shareholders’ Equity                                                  |   |   |   |
| Current liabilities:                                                                        |   |   |   |
| Current portion of long-term debt                                                           | $ | 37.9 |  |   | $ | 37.1 |  |
| Accounts payable                                                                            | 68.9 |  |   | 68.3 |  |
| Accrued expenses and other current liabilities                                              | 380.5 |  |   | 370.2 |  |
| Total current liabilities                                                                   | 487.3 |  |   | 475.6 |  |
| Long-term debt, net of current portion                                                      | 2,915.5 |  |   | 2,979.3 |  |
| Other long-term liabilities                                                                 | 168.5 |  |   | 160.0 |  |
|                                                                                        | 3,571.3 |  |   | 3,614.9 |  |
| Commitments and contingencies                                                               |   |   |   |
| Redeemable noncontrolling interests                                                         | 153.4 |  |   | 138.3 |  |
| Shareholders’ equity:                                                                 |   |  |   |   |  |
| HealthSouth shareholders’ equity                                                      | 779.7 |  |   | 735.9 |  |
| Noncontrolling interests                                                                    | 199.4 |  |   | 192.8 |  |
| Total shareholders’ equity                                                            | 979.1 |  |   | 928.7 |  |
| Total liabilities and shareholders’ equity                                            | $ | 4,703.8 |  |   | $ | 4,681.9 |  |

|        |
|--------|
|        |  |  |
|   |   | 7 |

----

|                                                                                         |
|-----------------------------------------------------------------------------------------|
|                                                                                         |  |  |  |  |  |  |  |
|                                                                                    | Three Months Ended March 31, |
|                                                                                    | 2017 |   | 2016 |
|                                                                                    | (In Millions) |
| Cash flows from operating activities:                                                   |   |   |   |
| Net income                                                                              | $ | 84.4 |  |   | $ | 76.7 |  |
| Loss from discontinued operations, net of tax                                           | 0.3 |  |   | 0.1 |  |
| Adjustments to reconcile net income to net cash provided by operating activities— |   |  |   |   |  |
| Provision for doubtful accounts                                                         | 16.4 |  |   | 16.5 |  |
| Depreciation and amortization                                                           | 45.2 |  |   | 42.4 |  |
| Equity in net income of nonconsolidated affiliates                                      | (2.1 | ) |   | (2.4 | ) |
| Distributions from nonconsolidated affiliates                                           | 2.1 |  |   | 1.7 |  |
| Stock-based compensation                                                                | 8.0 |  |   | 4.5 |  |
| Deferred tax expense                                                                    | 49.0 |  |   | 34.7 |  |
| Other, net                                                                              | 2.5 |  |   | 5.9 |  |
| Change in assets and liabilities, net of acquisitions—                            |   |   |   |  |
| Accounts receivable                                                                     | (20.0 | ) |   | (45.7 | ) |
| Other assets                                                                            | (16.4 | ) |   | 1.8 |  |
| Accounts payable                                                                        | (1.7 | ) |   | 0.6 |  |
| Accrued payroll                                                                         | (3.0 | ) |   | 30.8 |  |
| Other liabilities                                                                       | 16.5 |  |   | 4.1 |  |
| Premium paid on redemption of bonds                                                     | — |  |   | (1.9 | ) |
| Net cash used in operating activities of discontinued operations                        | (0.4 | ) |   | (0.2 | ) |
| Total adjustments                                                                       | 96.1 |  |   | 92.8 |  |
| Net cash provided by operating activities                                               | 180.8 |  |   | 169.6 |  |
|                                                                                    |   |   |   |

|        |
|--------|
|        |  |  |
|   | (Continued) | 8 |

----

|                                                                           |
|---------------------------------------------------------------------------|
|                                                                           |  |  |  |  |  |  |  |
|                                                                      | Three Months Ended March 31, |
|                                                                      | 2017 |   | 2016 |
|                                                                      | (In Millions) |
| Cash flows from investing activities:                                     |   |   |   |
| Purchases of property and equipment                                       | (41.2 | ) |   | (31.4 | ) |
| Additions to capitalized software costs                                   | (3.6 | ) |   | (7.7 | ) |
| Acquisitions of businesses, net of cash acquired                          | (16.4 | ) |   | — |  |
| Net change in restricted cash                                             | (4.7 | ) |   | (3.2 | ) |
| Other, net                                                                | 12.1 |  |   | 2.8 |  |
| Net cash used in investing activities                                     | (53.8 | ) |   | (39.5 | ) |
| Cash flows from financing activities:                                     |   |   |   |
| Principal payments on debt, including pre-payments                        | (6.4 | ) |   | (56.3 | ) |
| Borrowings on revolving credit facility                                   | 55.0 |  |   | 60.0 |  |
| Payments on revolving credit facility                                     | (122.0 | ) |   | (60.0 | ) |
| Repurchases of common stock, including fees and expenses                  | (18.1 | ) |   | (12.9 | ) |
| Dividends paid on common stock                                            | (22.2 | ) |   | (21.3 | ) |
| Proceeds from exercising stock warrants                                   | 26.6 |  |   | — |  |
| Distributions paid to noncontrolling interests of consolidated affiliates | (11.5 | ) |   | (15.6 | ) |
| Taxes paid on behalf of employees for shares withheld                     | (6.9 | ) |   | (9.9 | ) |
| Other, net                                                                | (0.8 | ) |   | (2.5 | ) |
| Net cash used in financing activities                                     | (106.3 | ) |   | (118.5 | ) |
| Increase in cash and cash equivalents                                     | 20.7 |  |   | 11.6 |  |
| Cash and cash equivalents at beginning of period                          | 40.5 |  |   | 61.6 |  |
| Cash and cash equivalents at end of period                                | $ | 61.2 |  |   | $ | 73.2 |  |

|        |
|--------|
|        |  |  |
|   |   | 9 |

----

|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |  |  |  |
|                                                         | QTD |
|                                                         | Q1 2017 |   | Q1 2016 |
|                                                         | (In Millions, Except Per Share Data) |
| Adjusted EBITDA                                              | $ | 200.8 |  |   | $ | 192.1 |  |
| Interest expense and amortization of debt discounts and fees | (41.3 | ) |   | (44.6 | ) |
| Depreciation and amortization                                | (45.2 | ) |   | (42.4 | ) |
| Stock-based compensation expense                             | (8.0 | ) |   | (4.5 | ) |
| Noncash gain (loss) on disposal or impairment of assets      | 0.5 |  |   | (0.2 | ) |
|                                                         | 106.8 |  |   | 100.4 |  |
| Certain items non-indicative of ongoing operations:          |   |   |   |
| Loss on early extinguishment of debt                         | — |  |   | (2.4 | ) |
| Professional fees—accounting, tax, and legal           | — |  |   | (0.2 | ) |
| Pre-tax income                                               | 106.8 |  |   | 97.8 |  |
| Income tax expense (1)                                       | (39.7 | ) |   | (39.7 | ) |
| Income from continuing operations (2)                        | $ | 67.1 |  |   | $ | 58.1 |  |
|                                                         |   |   |   |
| Basic shares                                                 | 88.8 |  |   | 89.5 |  |
| Diluted shares                                               | 99.0 |  |   | 99.4 |  |
|                                                         |   |   |   |
| Basic earnings per share (2)                                 | $ | 0.75 |  |   | $ | 0.65 |  |
| Diluted earnings per share (2)                               | $ | 0.70 |  |   | $ | 0.61 |  |

|           |                                                                                                                                                             |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1)  | Current income tax (benefit) expense for the three months ended March 31, 2017 and 2016 was $(9.3) million and $5.0 million, respectively. |

|           |                                                                |
|-----------|----------------------------------------------------------------|
| (2)  | Income from continuing operations attributable to HealthSouth. |

|        |
|--------|
|        |  |  |
|   |   | 10 |

----

|                                                          |
|----------------------------------------------------------|
|                                                          |  |  |  |  |  |  |  |
|                                                     | Q1 |
|                                                     | 2017 |   | 2016 |
|                                                     |   |   |   |
| Earnings per share, as reported                          | $ | 0.70 |  |   | $ | 0.61 |  |
| Adjustments, net of tax:                                 |   |   |   |
| Mark-to-market adjustments for stock appreciation rights | 0.02 |  |   | (0.01 | ) |
| Income tax adjustments(1) and settlements           | (0.03 | ) |   | — |  |
| Loss on early extinguishment of debt                     | — |  |   | 0.01 |  |
| Adjusted earnings per share(2)                           | $ | 0.70 |  |   | $ | 0.61 |  |

|           |                                                                                                                                                                                                                                                                                                                   |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1)  | New guidance in ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting,” requires entities to record all of the tax effects related to share-based payments at settlement (or expiration) through the income statement. Historically, HealthSouth recorded such tax effects to equity. |

|           |                                           |
|-----------|-------------------------------------------|
| (2)  | Adjusted EPS may not sum due to rounding. |

|        |
|--------|
|        |  |  |
|   |   | 11 |

----

|                                                               |
|---------------------------------------------------------------|
|                                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                          | For the Three Months Ended March 31, 2017 |
|                                                          |   |   | Adjustments |   |
|                                                          | As Reported |   | Mark-to-Market Adjustment for Stock Appreciation Rights |   | Income Tax Adjustments(1) and Settlements |   | As Adjusted |
|                                                          | (In Millions, Except Per Share Amounts) |
| Adjusted EBITDA(2)                                            | $ | 200.8 |  |   | $ | — |  |   | $ | — |  |   | $ | 200.8 |  |
| Depreciation and amortization                                 | (45.2 | ) |   | — |  |   | — |  |   | (45.2 | ) |
| Interest expense and amortization of debt discounts and fees  | (41.3 | ) |   | — |  |   | — |  |   | (41.3 | ) |
| Stock-based compensation                                      | (8.0 | ) |   | 3.3 |  |   | — |  |   | (4.7 | ) |
| Loss on disposal or impairment of assets                      | 0.5 |  |   | — |  |   | — |  |   | 0.5 |  |
| Income from continuing operations before income tax expense   | 106.8 |  |   | 3.3 |  |   | — |  |   | 110.1 |  |
| Provision for income tax expense                              | (39.7 | ) |   | (1.3 | ) |   | (2.6 | ) |   | (43.6 | ) |
| Income from continuing operations attributable to HealthSouth | $ | 67.1 |  |   | $ | 2.0 |  |   | $ | (2.6 | ) |   | $ | 66.5 |  |
| Add: Interest on convertible debt, net of tax                 | 2.5 |  |   |   |   |   |   | 2.5 |  |
| Numerator for diluted earnings per share                      | $ | 69.6 |  |   |   |   |   |   | $ | 69.0 |  |
|                                                          |   |   |   |   |   |   |   |
| Diluted earnings per share from continuing operations(3)      | $ | 0.70 |  |   | $ | 0.02 |  |   | $ | (0.03 | ) |   | $ | 0.70 |  |
| Diluted shares used in calculation                            | 99.0 |  |   |   |   |   |   |   |

|           |                                                                                                                                                                                                                                                                                                                   |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1)  | New guidance in ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting,” requires entities to record all of the tax effects related to share-based payments at settlement (or expiration) through the income statement. Historically, HealthSouth recorded such tax effects to equity. |

|           |                                            |
|-----------|--------------------------------------------|
| (2)  | Reconciliation to GAAP provided on page 14 |

|           |                                                  |
|-----------|--------------------------------------------------|
| (3)  | Adjusted EPS may not sum across due to rounding. |

|        |
|--------|
|        |  |  |
|   |   | 12 |

----

|                                                               |
|---------------------------------------------------------------|
|                                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                          | For the Three Months Ended March 31, 2016 |
|                                                          |   |   | Adjustments |   |   |
|                                                          | As Reported |   | Professional Fees—Accounting, Tax, & Legal |   | Mark-to-Market Adjustment for Stock Appreciation Rights |   | Loss on Early Extinguishment of Debt |   | As Adjusted |
|                                                          | (In Millions, Except Per Share Amounts) |
| Adjusted EBITDA(1)                                            | $ | 192.1 |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | 192.1 |  |
| Depreciation and amortization                                 | (42.4 | ) |   | — |  |   | — |  |   | — |  |   | (42.4 | ) |
| Professional fees—accounting, tax, and legal            | (0.2 | ) |   | 0.2 |  |   | — |  |   | — |  |   | — |  |
| Loss on early extinguishment of debt                          | (2.4 | ) |   | — |  |   | — |  |   | 2.4 |  |   | — |  |
| Interest expense and amortization of debt discounts and fees  | (44.6 | ) |   | — |  |   | — |  |   | — |  |   | (44.6 | ) |
| Stock-based compensation                                      | (4.5 | ) |   | — |  |   | (2.4 | ) |   | — |  |   | (6.9 | ) |
| Loss on disposal or impairment of assets                      | (0.2 | ) |   | — |  |   | — |  |   | — |  |   | (0.2 | ) |
| Income from continuing operations before income tax expense   | 97.8 |  |   | 0.2 |  |   | (2.4 | ) |   | 2.4 |  |   | 98.0 |  |
| Provision for income tax expense                              | (39.7 | ) |   | (0.1 | ) |   | 1.0 |  |   | (1.0 | ) |   | (39.8 | ) |
| Income from continuing operations attributable to HealthSouth | $ | 58.1 |  |   | $ | 0.1 |  |   | $ | (1.4 | ) |   | $ | 1.4 |  |   | $ | 58.2 |  |
| Add: Interest on convertible debt, net of tax                 | 2.4 |  |   |   |   |   |   |   |   | 2.4 |  |
| Numerator for diluted earnings per share                      | $ | 60.5 |  |   |   |   |   |   |   |   | $ | 60.6 |  |
|                                                          |   |   |   |   |   |   |   |   |   |
| Diluted earnings per share from continuing operations(2)      | $ | 0.61 |  |   | $ | — |  |   | $ | (0.01 | ) |   | $ | 0.01 |  |   | $ | 0.61 |  |
| Diluted shares used in calculation                            | 99.4 |  |   |   |   |   |   |   |   |   |

|           |                                            |
|-----------|--------------------------------------------|
| (1)  | Reconciliation to GAAP provided on page 14 |

|           |                                                  |
|-----------|--------------------------------------------------|
| (2)  | Adjusted EPS may not sum across due to rounding. |

|        |
|--------|
|        |  |  |
|   |   | 13 |

----

|                                                                            |
|----------------------------------------------------------------------------|
|                                                                            |  |  |  |  |  |  |  |
|                                                                       | Three Months Ended March 31, |
|                                                                       | 2017 |   | 2016 |
|                                                                       | (In Millions) |
| Net income                                                                 | $ | 84.4 |  |   | $ | 76.7 |  |
| Loss from discontinued operations, net of tax, attributable to HealthSouth | 0.3 |  |   | 0.1 |  |
| Provision for income tax expense                                           | 39.7 |  |   | 39.7 |  |
| Interest expense and amortization of debt discounts and fees               | 41.3 |  |   | 44.6 |  |
| Professional fees—accounting, tax, and legal                         | — |  |   | 0.2 |  |
| Loss on early extinguishment of debt                                       | — |  |   | 2.4 |  |
| Net noncash (gain) loss on disposal or impairment of assets                | (0.5 | ) |   | 0.2 |  |
| Depreciation and amortization                                              | 45.2 |  |   | 42.4 |  |
| Stock-based compensation expense                                           | 8.0 |  |   | 4.5 |  |
| Net income attributable to noncontrolling interests                        | (17.6 | ) |   | (18.7 | ) |
| Adjusted EBITDA                                                            | $ | 200.8 |  |   | $ | 192.1 |  |

|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |  |  |  |
|                                                         | Three Months Ended March 31, |
|                                                         | 2017 |   | 2016 |
|                                                         | In Millions |
| Total segment Adjusted EBITDA                                | $ | 229.3 |  |   | $ | 219.5 |  |
| General and administrative expenses                          | (36.5 | ) |   | (31.9 | ) |
| Depreciation and amortization                                | (45.2 | ) |   | (42.4 | ) |
| Gain (loss) on disposal or impairment of assets              | 0.5 |  |   | (0.2 | ) |
| Professional fees—accounting, tax, and legal           | — |  |   | (0.2 | ) |
| Loss on early extinguishment of debt                         | — |  |   | (2.4 | ) |
| Interest expense and amortization of debt discounts and fees | (41.3 | ) |   | (44.6 | ) |
| Net income attributable to noncontrolling interests          | 17.6 |  |   | 18.7 |  |
| Income from continuing operations before income tax expense  | $ | 124.4 |  |   | $ | 116.5 |  |

|        |
|--------|
|        |  |  |
|   |   | 14 |

----

|                                                                              |
|------------------------------------------------------------------------------|
|                                                                              |  |  |  |  |  |  |  |
|                                                                         | Three Months Ended March 31, |
|                                                                         |
|                                                                         | 2017 |   | 2016 |
|                                                                         | (In Millions) |
| Net cash provided by operating activities                                    | $ | 180.8 |  |   | $ | 169.6 |  |
| Provision for doubtful accounts                                              | (16.4 | ) |   | (16.5 | ) |
| Professional fees—accounting, tax, and legal                           | — |  |   | 0.2 |  |
| Interest expense and amortization of debt discounts and fees                 | 41.3 |  |   | 44.6 |  |
| Equity in net income of nonconsolidated affiliates                           | 2.1 |  |   | 2.4 |  |
| Net income attributable to noncontrolling interests in continuing operations | (17.6 | ) |   | (18.7 | ) |
| Amortization of debt-related items                                           | (3.5 | ) |   | (3.4 | ) |
| Distributions from nonconsolidated affiliates                                | (2.1 | ) |   | (1.7 | ) |
| Current portion of income tax (benefit) expense                              | (9.3 | ) |   | 5.0 |  |
| Change in assets and liabilities                                             | 24.6 |  |   | 8.4 |  |
| Net premium paid on bond transactions                                        | — |  |   | 1.9 |  |
| Net cash used in operating activities of discontinued operations             | 0.4 |  |   | 0.2 |  |
| Other                                                                        | 0.5 |  |   | 0.1 |  |
| Consolidated Adjusted EBITDA                                                 | $ | 200.8 |  |   | $ | 192.1 |  |

|        |
|--------|
|        |  |  |
|   |   | 15 |

----

|                                                                           |
|---------------------------------------------------------------------------|
|                                                                           |  |  |  |  |  |  |  |
|                                                                      | Three Months Ended March 31, |
|                                                                      |
|                                                                      | 2017 |   | 2016 |
|                                                                      | (In Millions) |
| Net cash provided by operating activities                                 | $ | 180.8 |  |   | $ | 169.6 |  |
| Impact of discontinued operations                                         | 0.4 |  |   | 0.2 |  |
| Net cash provided by operating activities of continuing operations        | 181.2 |  |   | 169.8 |  |
| Capital expenditures for maintenance                                      | (22.2 | ) |   | (17.7 | ) |
| Distributions paid to noncontrolling interests of consolidated affiliates | (11.5 | ) |   | (15.6 | ) |
| Items non-indicative of ongoing operations:                               |   |   |   |
| Cash paid for professional fees—accounting, tax, and legal          | — |  |   | 0.2 |  |
| Transaction costs and related assumed liabilities                         | — |  |   | 0.8 |  |
| Net premium on bond issuance/repayment                                    | — |  |   | 1.9 |  |
| Adjusted free cash flow                                                   | $ | 147.5 |  |   | $ | 139.4 |  |

|        |
|--------|
|        |  |  |
|   |   | 16 |

----

|        |
|--------|
|        |  |  |
|   |   | 17 |