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HealthSouth Sued for Construction Bills

Apr 20, 2003 | General contractor Brasfield and Gorrie has sued HealthSouth Corporation for 22 million dollars for its work on the firm's unfinished hospital on US 280 near Birmingham. HealthSouth has halted construction on the 300 million dollar project during its court fight over financial troubles that led to the ouster of CEO Richard Scrushy.

Brasfield and Gorrie in its lawsuit filed Wednesday in Jefferson County Circuit Court seeks payment for work it says was performed on the half-finished hospital. Brasfield and Gorrie is among a number of former HealthSouth business partners affected by a freeze on "extraordinary payments" instituted by new HealthSouth management that is trying to save money during negotiations with creditors.

Michael Harris, president of MJ Harris Incorporated, another Birmingham general contractor, was building a 16.6 million dollar HealthSouth hospital in Phenix City. That project also is on hold.

MJ Harris stopped work this month on a rehabilitation hospital in Phenix City because it didn't know if it would be paid. The hospital was two months from completion. Harris predicts some smaller firms in the construction industry won't survive the hardship.

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