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Petitioner's experts concluded that the compensation paid Rogers
was reasonable. Hughes based his conclusion on various sources,
one of which was relevant industry and compensation data. This
data, according to Hughes and Benesh, describes the economic
conditions in which petitioner operated from 1986 through 1990.
In their report, Hughes and Benesh provided data they
gathered from the Tennessee Board of Licensing Health Care
Facilities and the National Association for Home Care,
Washington, D.C. The data shows that there were fewer licensed
health care agencies in the State of Tennessee in each year after
1986. For instance, there were 379 licensed health care agencies
in the State of Tennessee in 1986, 326 in 1989, and 320 in 1990.
Hughes interpreted this data to indicate that the health care
industry was "slowing down". Hughes and Benesh attributed this
slowing down to the increasing Medicare paperwork and unreliable
payment policies.
Petitioner's gross receipts, net income, and retained
earnings have increased every year since 1986. It is evident
that petitioner was able to take advantage of the business
opportunities that arose in the consolidating industry. Hughes
and Benesh attributed this ability to Rogers' business acumen and
knowledge of the industry.
Although we agree that the data supports a finding that
there were fewer health care agencies in the State of Tennessee
in each year after 1986, we note that more than 98 percent of the
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