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HealthSouth Delays Filing Statement
WASHINGTON (Reuters) - HealthSouth Corp. (Other OTC:HLSH.PK - News), under investigation for its accounting practices, on Tuesday said it is unable to file an annual financial statement with the Securities and Exchange Commission (News - Websites).

The Birmingham, Alabama-based company, the nation's largest operator of outpatient surgical centers and rehabilitation clinics, is being investigated by the SEC and the Department of Justice over possibly overstating earnings by $1.4 billion.

It also said it will replace Ernst & Young as its auditor and has engaged forensic auditors to looking to the company's financial statements and related disclosures.

HealthSouth filed with the SEC to notify the regulator that it would be unable to file its annual financial statement by the March 31 deadline.

"Because this review is ongoing, the company is unable to complete the preparation of its financial statements for the fiscal year ended December 31, 2002 or receive an independent auditors' report," HealthSouth said in a filing with the SEC on Tuesday. "The company intends to file such report as soon as practicable."