Alpha Medical, Inc., f.k.a. Alpha Medical Management, Inc. - Page 24

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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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