Relationships - Siegelman, Scrushy, and the CON Board

Below is a simplification of some of the alleged relationships and charges:

The government alleges former HealthSouth Chairman and CEO Richard Scrushy gave payments totally $500,000 to former Governor Don Siegelman in exchange for a seat on the Certificate of Need Review Board and eventually orchestrated with Siegelman a replacement for Scrushy on the board.  The replacement was an employee of HealthSouth.  The CON Board approves hospital construction and other contracts.

The government alleges the payments were "concealed and disguised."  Scrushy lawyers say at least one of the payments could not be concealed or disguised because that particular $250,000 check was clearly drawn on a HealthSouth account.

Siegelman allegedly deposited a check made out to the Alabama Education Lottery Foundation to a loan account around November 5, 1999.  Another check made out to the Alabama Education Foundation (formerly Alabama Education Lottery Foundation) was deposited to the loan account around May 23, 2000.

The government alleges Scrushy used his position on the board to benefit HealthSouth and block benefits to HealthSouth competitors.

The government alleges Scrushy "would and did offer things of value to another CON board member" in exchange for help for HealthSouth on the CON board.

Payments of $3,000 were allegedly made to a CON board member by one of the alleged conspirators in exchange for that member showing up to the meeting on or around July 17, 2002 and creating a quorum.  At the meeting the final order of approval for a HealthSouth Regional Rehabilitation hospital was given.

The government alleges another payment of $8,000 was made to a CON board member by one of the conspirators to draft the CON application for a PET scanner.  HealthSouth was sent a letter outlining the need for the application and subsequently the money was allegedly paid for the service and on or around December 18, 2002 the CON Board member made another meeting and created a quorum at which the PET scanner was approved.