updated 6/27/2005 5:56:05 PM ET 2005-06-27T21:56:05

HealthSouth Corp. restated its finances for the final years of a huge fraud on Monday and said it hoped to be current on its financial statements by the end of 2005.

In a 170-page filing with the Securities and Exchange Commission that included an additional 114 pages of notes, HealthSouth said actual revenues in 2000 and 2001 were $7.1 billion — some $1.5 billion less than previously reported.

The rehabilitation and medical services chain lost $364 million in 2000 and $191 million in 2001 rather than making the $481 million total it originally reported for those years, according to the restatements.

In the restatement, HealthSouth said it planned to file an annual report for 2004 by the end of this year, an important step because it would bring the company up-to-date on all its regulatory filings.

HealthSouth said it spent more than $250 million on the restatement.

"I am very pleased to have this behind us so we can focus more of our resources on our strategic plan and future growth," HealthSouth chief executive officer Jay Grinney said in a statement.

The company filed the restatements as a federal jury in Birmingham deliberated in the corporate fraud trial of HealthSouth founder and ousted CEO Richard Scrushy, accused of directing a $2.6 billion earnings overstatement from 1996 through mid-2002. Fifteen former HealthSouth employees have pleaded guilty in the fraud.

A federal jury deliberated a 20th day Monday in the trial of Scrushy. It was jurors' fourth day of work since the judge replaced a sick member with an alternate and told them to start over. Scrushy is the first chief executive tried under the Sarbanes-Oxley corporate reporting law. He also is accused of conspiracy, false reporting, fraud and money laundering.

Scrushy contends underlings carried out the fraud without his knowledge.

Despite being fired, Scrushy has refused to resign from the board and is still listed as a director in company documents because HealthSouth hasn't held a shareholder meeting where he could be voted out. He does not have any active role, however.

Scrushy made $23.1 million in bonuses during the final years of the fraud while the company was losing millions yet reporting profits amid the accounting scheme, company documents show.

The company also provided details on some of its spending under Scrushy, including $5.3 million in payments from 1997 to 1999 to fund an America's Cup sailing team managed by Dr. Jim Andrews, a top orthopedic surgeon associated with HealthSouth at the time.

With Andrews as chairman and Scrushy as honorary co-chair, Aloha Racing Foundation lost an America's Cup bid and declared bankruptcy in April 2000. The company said it settled a claim against the foundation for $800,000.

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