<PAGE>
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D. C. 20549

                                    FORM 8-K

                 Current Report Pursuant to Section 13 or 15(d)
                     of the Securities Exchange Act of 1934



Date of Report:   March 14, 1996




                             HEALTHSOUTH Corporation
            ---------------------------------------------------------
             (Exact Name of Registrant as Specified in its Charter)




            Delaware                    1-10315               63-0860407
       ------------------              ---------             ------------
         (State or Other              (Commission          (I.R.S. Employer
  Jurisdiction of Incorporation      File Number)         Identification No.)
        or Organization)



    Two Perimeter Park South
       Birmingham, Alabama                                       35243
  ----------------------------                               -------------
      (Address of Principal                                   (Zip Code)
       Executive Offices)



 Registrant's Telephone Number,                             (205) 967-7116
      Including Area Code:



<PAGE>


Item 2.  ACQUISITION OR DISPOSITION OF ASSETS


         Effective  March  14,  1996,   HEALTHSOUTH   Corporation,   a  Delaware
corporation  (the  "Company"),  through  its  wholly-owned  subsidiary,  Aladdin
Acquisition  Corporation,  a Delaware corporation (the "Subsidiary"),  completed
the  acquisition  of  Advantage  Health  Corporation,   a  Delaware  corporation
("Advantage"),   through  a  merger  of  the  Subsidiary  into   Advantage.   As
contemplated  by the terms of the  Agreement and Plan of Merger by and among the
parties,  Advantage is the surviving  corporation  in the merger,  and is wholly
owned by the Company. Advantage stockholders received 1.376 shares of the Common
Stock,  par value $.01 per share,  of the  Company  for each share of the Common
Stock,  par value $.01 per share,  of Advantage held by them. The exchange ratio
represents a value of $48.19 per share to Advantage's stockholders, resulting in
an approximate value of the transaction of $318,583,000.

         Prior to consummation of the acquisition,  Advantage operated a network
of approximately 150 sites in New England providing post- acute care services.


Item 7.  FINANCIAL STATEMENTS AND EXHIBITS


         (a)      Financial Statements of Businesses Acquired.

         The required audited consolidated  financial statements of Advantage at
August  31,  1995  and  1994,  and the  periods  then  ended,  were  filed  with
Advantage's Annual Report on Form 10-K for the fiscal year ended August 31,1995,
and  are  hereby  incorporated  herein  by  reference.  The  required  unaudited
consolidated  financial  statements  of Advantage at November 30, 1995,  and the
period then ended, were filed with Advantage's Quarterly Report on Form 10-Q for
the quarter  ended  November 30,  1995,  and are hereby  incorporated  herein by
reference.

         (b)      Pro Forma Financial Information.

         The required Pro Forma Consolidated Financial Statements of the Company
for the fiscal year ended  December 31, 1994, and at September 30, 1995, and the
period  then ended,  were filed with the  Company's  Current  Report on Form 8-K
dated  December  16, 1995,  as amended,  and are hereby  incorporated  herein by
reference.


                                      - 2 -

<PAGE>

         (c)      Exhibits.

                  (2)               Agreement  and Plan of  Merger,  dated as of
                                    December 16, 1995, by and among  HEALTHSOUTH
                                    Corporation, Aladdin Acquisition Corporation
                                    and Advantage Health  Corporation,  filed as
                                    Annex A to the Prospectus  forming a part of
                                    the Company's Registration Statement on Form
                                    S-4 (Reg.  No.  333-825),  as filed with the
                                    Commission  on February  9, 1996,  is hereby
                                    incorporated herein by reference.

                  (99)-1            Audited consolidated financial statements of
                                    Advantage  at August 31, 1995 and 1994,  and
                                    the  periods  then  ended,   as  filed  with
                                    Advantage's  Annual  Report on Form 10-K for
                                    the fiscal year ended August 31,  1995,  are
                                    hereby incorporated herein by reference.

                  (99)-2            Pro Forma Consolidated  Financial Statements
                                    of the  Company  for the  fiscal  year ended
                                    December  31,  1994,  and at  September  30,
                                    1995,  and the period then  ended,  as filed
                                    with the  Company's  Current  Report on Form
                                    8-K dated  December  16,  1995,  are  hereby
                                    incorporated herein by reference.


         The Registrant  undertakes to furnish  supplementally to the Commission
upon  request  a copy of any  Exhibit  to the  Amended  and  Restated  Plan  and
Agreement of Merger, incorporated by reference
herein as Exhibit (2).

                                      - 3 -

<PAGE>

                                   SIGNATURES


         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
the  Registrant  has duly  caused  this Report to be signed on its behalf by the
undersigned hereunto duly authorized.

Date:    March 29, 1996


                                         HEALTHSOUTH Corporation


                                         By    /s/ ANTHONY J. TANNER
                                           -----------------------------
                                                   Anthony J. Tanner
                                               Executive Vice President
                                                     and Secretary






















                                      - 4 -
[{"type": "8-K", "sequence": "1", "description": "FORM 8-K", "secsgml_size_bytes": 6365}]
{"company-data": {"conformed-name": "HEALTHSOUTH CORP", "cik": "0000785161", "assigned-sic": "8093", "irs-number": "630860407", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-10315", "film-number": "96541215"}, "business-address": {"street1": "TWO PERIMETER PARK S", "street2": "STE 224W", "city": "BIRMINGHAM", "state": "AL", "zip": "35243", "phone": "2059677116"}, "mail-address": {"street1": "TWO PERIMETER PARK SOUTH", "city": "BIRMINGHAM", "state": "AL", "zip": "35243"}, "former-company": {"former-conformed-name": "HEALTHSOUTH REHABILITATION CORP", "date-changed": "19920703"}}
SECURITIES AND EXCHANGE COMMISSION
                             Washington, D. C. 20549

                                    FORM 8-K

                 Current Report Pursuant to Section 13 or 15(d)
                     of the Securities Exchange Act of 1934

Date of Report:   March 14, 1996

                             HEALTHSOUTH Corporation
            ---------------------------------------------------------
             (Exact Name of Registrant as Specified in its Charter)

            Delaware                    1-10315               63-0860407
       ------------------              ---------             ------------
         (State or Other              (Commission          (I.R.S. Employer
  Jurisdiction of Incorporation      File Number)         Identification No.)
        or Organization)

    Two Perimeter Park South
       Birmingham, Alabama                                       35243
  ----------------------------                               -------------
      (Address of Principal                                   (Zip Code)
       Executive Offices)

 Registrant's Telephone Number,                             (205) 967-7116
      Including Area Code:
Item 2.  ACQUISITION OR DISPOSITION OF ASSETS

         Effective  March  14,  1996,   HEALTHSOUTH   Corporation,   a  Delaware
corporation  (the  "Company"),  through  its  wholly-owned  subsidiary,  Aladdin
Acquisition  Corporation,  a Delaware corporation (the "Subsidiary"),  completed
the  acquisition  of  Advantage  Health  Corporation,   a  Delaware  corporation
("Advantage"),   through  a  merger  of  the  Subsidiary  into   Advantage.   As
contemplated  by the terms of the  Agreement and Plan of Merger by and among the
parties,  Advantage is the surviving  corporation  in the merger,  and is wholly
owned by the Company. Advantage stockholders received 1.376 shares of the Common
Stock,  par value $.01 per share,  of the  Company  for each share of the Common
Stock,  par value $.01 per share,  of Advantage held by them. The exchange ratio
represents a value of $48.19 per share to Advantage's stockholders, resulting in
an approximate value of the transaction of $318,583,000.

         Prior to consummation of the acquisition,  Advantage operated a network
of approximately 150 sites in New England providing post- acute care services.

Item 7.  FINANCIAL STATEMENTS AND EXHIBITS

         (a)      Financial Statements of Businesses Acquired.

         The required audited consolidated  financial statements of Advantage at
August  31,  1995  and  1994,  and the  periods  then  ended,  were  filed  with
Advantage's Annual Report on Form 10-K for the fiscal year ended August 31,1995,
and  are  hereby  incorporated  herein  by  reference.  The  required  unaudited
consolidated  financial  statements  of Advantage at November 30, 1995,  and the
period then ended, were filed with Advantage's Quarterly Report on Form 10-Q for
the quarter  ended  November 30,  1995,  and are hereby  incorporated  herein by
reference.

         (b)      Pro Forma Financial Information.

         The required Pro Forma Consolidated Financial Statements of the Company
for the fiscal year ended  December 31, 1994, and at September 30, 1995, and the
period  then ended,  were filed with the  Company's  Current  Report on Form 8-K
dated  December  16, 1995,  as amended,  and are hereby  incorporated  herein by
reference.

                                      - 2 -
(c)      Exhibits.

                  (2)               Agreement  and Plan of  Merger,  dated as of
                                    December 16, 1995, by and among  HEALTHSOUTH
                                    Corporation, Aladdin Acquisition Corporation
                                    and Advantage Health  Corporation,  filed as
                                    Annex A to the Prospectus  forming a part of
                                    the Company's Registration Statement on Form
                                    S-4 (Reg.  No.  333-825),  as filed with the
                                    Commission  on February  9, 1996,  is hereby
                                    incorporated herein by reference.

                  (99)-1            Audited consolidated financial statements of
                                    Advantage  at August 31, 1995 and 1994,  and
                                    the  periods  then  ended,   as  filed  with
                                    Advantage's  Annual  Report on Form 10-K for
                                    the fiscal year ended August 31,  1995,  are
                                    hereby incorporated herein by reference.

                  (99)-2            Pro Forma Consolidated  Financial Statements
                                    of the  Company  for the  fiscal  year ended
                                    December  31,  1994,  and at  September  30,
                                    1995,  and the period then  ended,  as filed
                                    with the  Company's  Current  Report on Form
                                    8-K dated  December  16,  1995,  are  hereby
                                    incorporated herein by reference.

         The Registrant  undertakes to furnish  supplementally to the Commission
upon  request  a copy of any  Exhibit  to the  Amended  and  Restated  Plan  and
Agreement of Merger, incorporated by reference
herein as Exhibit (2).

                                      - 3 -
SIGNATURES

         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
the  Registrant  has duly  caused  this Report to be signed on its behalf by the
undersigned hereunto duly authorized.

Date:    March 29, 1996

                                         HEALTHSOUTH Corporation

                                         By    /s/ ANTHONY J. TANNER
                                           -----------------------------
                                                   Anthony J. Tanner
                                               Executive Vice President
                                                     and Secretary

                                      - 4 -