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physicians who referred patients to HCA hospitals, the payment of
additional premiums for prior years during 1986 while failing to
pay current premiums, and the decision during 1987 to raise HCA's
and the sister subsidiaries' general and professional liability
insurance deductible to $10 million and thereby effectively
terminate Parthenon's premium income demonstrate that Parthenon
was controlled at all times by HCA for the benefit of HCA.
Additionally, respondent contends that the comfort letter given
by HCA to Ideal Mutual to guarantee the performance of Parthenon,
the payment of workers' compensation claims in 1984 by HCA in
connection with its Florida hospitals upon the insolvency of
Ideal Mutual, the transfer of Parthenon's reserves to PCIC, the
reserve strengthening payments totaling $86 million, an alleged
$60 million excessive premium charged for the 1986 claims-made
policy at the rate for a policy on an occurrence basis, the
failure of HCA to pay the quarterly premiums for the first three
quarters of 1986, and the decision by HCA during 1987 to pay
claims less than $10 million out of working capital, all support
the conclusion that neither HCA nor the sister subsidiaries
shifted risks to Parthenon.
Petitioners contend, however, that the facts in the instant
case are similar to those in Humana, Inc. v. Commissioner, supra.
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