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Health regulator issues subpoenas to four HealthSouth hospitals

(Reuters) - HealthSouth Corp said four of its hospitals received subpoenas from the health regulator seeking information on patient admissions and compliance with Medicare rules.

HealthSouth shares fell more than 11 percent to $22.00 on Tuesday after the bell.

HealthSouth said in a regulatory filing that the subpoenas were issued by the Miami Lakes, Florida office of the U.S. Department of Health and Human Services and concerned alleged improper or fraudulent claims submitted to Medicare and Medicaid. (http://link.reuters.com/juv46t)

The agency also asked for copies of medical records for 100 patients treated at the four hospitals between September 2008 and June 2012.

The hospitals have also been asked to produce details on marketing functions, preadmission screening, post admission physician evaluations and compliance with certain Medicare rules.

These four hospitals accounted for about 4 percent of HealthSouth's consolidated net operating revenues between October 2008 and July 2012, the company said.

(Reporting By Vrinda Manocha in Bangalore; Editing by Roshni Menon)