HealthSouth CEO: Digital Hospital was ‘a Very Bad Business Decision’

HealthSouth CEO Jay Grinney said the company’s “digital hospital,” which it abandoned six years ago, after putting $225 million into it, was “a very bad business decision” for HealthSouth, according to a report in the Birmingham (Ala.) News.

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Mr. Grinney was testifying in a hearing on Birmingham-based Trinity Medical Center’s proposal to complete the project as the new home for the Montclair Baptist Medical Center.

The original contractor testified that the project could be completed within 16 months to original specifications for about $90 million, but Trinity’s plan is opposed by two other hospital organizations.

The digital hospital was the pet project of former HealthSouth CEO Richard Scrushy, and when work on it was stopped after Mr. Scrushy’s 2003 ouster, Mr. Grinney said several hospital organizations, including Tenet, considered buying it, but no offers materialized and HealthSouth seriously considered tearing it down.

Read the Birmingham News’s report on HealthSouth’s digital hospital.

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