Anclote Psychiatric Center, Inc. - Page 6

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                  Respondent argues that petitioner (1) is not entitled to the                          
            amount petitioner is now claiming, for purposes of the instant                              
            motion, of $1,014,378.94 as an expense paid to the FPCF during                              
            the years at issue, and (2) did not sustain a net operating loss                            
            in taxable year 1983.                                                                       
            2.  FPCF Payments                                                                           
                  In 1975, the State of Florida enacted the Medical                                     
            Malpractice Reform Act.2  As a part of the Act, the FPCF was                                
            established to provide liability coverage in excess of basic                                
            policy limits for its member hospitals.  Petitioner became a                                
            participant in FPCF during the fiscal year ending September 30,                             
            1977.  Various assessments were made against petitioner by the                              
            FPCF.                                                                                       
                  On June 20, 1985, petitioner and the FPCF entered into a                              
            settlement agreement establishing a payment schedule for                                    
            petitioner's then outstanding FPCF assessments as well as                                   
            subsequent assessments.  The payment schedule covers what the                               
            FPCF refers to as the "fifth assessment" and all subsequent FPCF                            
            assessments including the sixth, seventh, and eighth assessments.                           
            The FPCF fifth assessment years are 1977-78, 1979-80, 1980-81,                              
            and 1981-82.  The "fourth assessment" involves FPCF years 1976                              
            through 1981.  The payment schedule outlined in the settlement                              
            agreement required petitioner to pay on or before each January                              


                  2Fla. Stat., sec. 768.54.                                                             




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