HEALTHSOUTH CORP
424B3, 1998-11-27
SPECIALTY OUTPATIENT FACILITIES, NEC
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                                Prospectus Supplement filed under Rule 424(b)(3)
                                                  S-3 Registration No. 333-52237

PROSPECTUS SUPPLEMENT
(to Prospectus dated June 3, 1998)

THIS DOCUMENTS  CONSTITUTES PART OF A PROSPECTUS  COVERING  SECURITIES THAT HAVE
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933.  INFORMATION  CONTAINED HEREIN
IS SUBJECT TO AMENDMENT.

                             HEALTHSOUTH Corporation

                                  $567,750,000
                         3.25% Convertible Subordinated
                               Debentures due 2003

                                       and

                       15,501,707 SHARES OF COMMON STOCK,
                            PAR VALUE $.01 PER SHARE

     The  Prospectus,  dated June 3, 1998 (the  "Prospectus"),  relating  to the
offering  for  resale  of  $567,750,000  aggregate  principal  amount  of  3.25%
Convertible  Subordinated  Debentures due 2003 and  15,501,707  shares of Common
Stock, par value $.01 per share, of HEALTHSOUTH Corporation (the "Company"),  is
hereby supplemented as set forth below.

1. JULIUS BAER SECURITIES is added to the table of Securityholders on page 15 of
   the  Prospectus,  together with the following  information  as of recent date
   prior to the date of this Prospectus Supplement:

   Principal Amount of Debentures Beneficially Owned That May be Sold    300,000
   ------------------------------------------------------------------
   Percentage of Debentures Outstanding                                        *
   ------------------------------------
   Number of Conversion Shares                                             8,191
   ---------------------------
   Percentage of Common Stock Outstanding                                      *
   --------------------------------------

1. The information  set forth opposite the name SMITH BARNEY,  INC. in the table
   of Selling Securityholders on page 16 is amended as follows:


   Principal Amount of Debentures Beneficially Owned That May be Sold 11,960,000
   ------------------------------------------------------------------
   Percentage of Debentures Outstanding                                     2.10
   ------------------------------------
   Number of Conversion Shares                                           326,552
   ---------------------------
   Percentage of Common Stock Outstanding                                      *
   --------------------------------------

          The date of this Prospectus Supplement is November 25, 1998.

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