Date of Award


Degree Type


Degree Name



Department of Public Administration

First Advisor

R. A. Frempong


The intent of this degree paper is to describe and analyze the impact of a 10 percent ($693,272.20) reduction in federal government funding for HealthSouth, Inc., on the delivery of health care services to low income persons. The paper gives a background history of HealthSouth, Inc., from its inception to the present, with particular reference to its physical facilities, governance and medical staff. The study also draws attention to the demographics of the Fulton County area with analysis of statistical data on population, ethnic composition, marital status, household composition, high school graduates, economic condition, births, births by age of mother, infant mortality and epidemiology. The demographics revealed the prevalent poverty in the Fulton County area. The study is significant for planning purposes. HealthSouth must study the impact of a 10 percent cut in funding on the poor and must do short term and long range planning to accommodate the loss of funds while providing the best health care possible for the indigent. The study found that the $693,272.20 reduction in federal funding for HealthSouth, Inc. is already creating more problems than anticipated. Some patients are unable to receive medical care because of HealthSouth's understaffing problems; others will not receive medical care because they have been asked to pay for these services. The main sources of information were from personal interviews conducted by the writer (who is presently holding a management position in HealthSouth's central administration). Four levels of officials were interviewed: (a)the chief executive officer of HealthSouth; (b) eight senior managers of HealthSouth; (c) two senior officials from the federal government level; and (d) the chairman of the board of directors of HealthSouth. Included in this study are recommendations that the writer has made to the board of directors through the chief executive officer.