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FINDINGS OF FACT
Some of the facts have been stipulated. The stipulated
facts and attached exhibits are incorporated herein by this
reference.
A. Petitioner's Background
Alpha Medical Management, Inc., also known as Alpha Medical,
Inc. (hereinafter petitioner), is a medical management
corporation duly formed and organized under the laws of
Tennessee. At the time the petition was filed, its principal
place of business was in Chattanooga, Tennessee. Rogers
incorporated petitioner in 1982, with an initial capital
contribution of $1,000. He has not made any additional capital
contributions to petitioner. Petitioner began operations on
January 1, 1986. By 1990, petitioner had 60 employees.
Petitioner provides medical management services to home
health care agencies and hospitals with home health care
departments. Home health care agencies are subject to State
licensing requirements and requirements known as Certificate of
Need. The services petitioner provides to its clients are
tailored to meet each client's individual needs and to assist
each client in complying with the various licensing requirements,
Certificate of Need requirements, and the various Medicare and
Medicaid regulations. In most instances, petitioner's services
include the management of four categories of operations: (i)
Reimbursement, (ii) accounting, (iii) accounts receivable,
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