-6-
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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