- 91 -
Petitioners contend that Mr. Merlino's adjustments for years
ended 1987 and 1988 do not take into account that the total
reserves are in fact within the range that Mr. Biscoglia
recommended. The reserve analysis reports relating specifically
to Parthenon for years ended 1987 and 1988, however, do not
delineate recommended ranges for Parthenon's unpaid losses
reserves for professional and general liabilities for those
years. Rather, they set forth fixed dollar values for those
reserves. On brief, petitioners attempt to extrapolate a
recommended range for Parthenon's unpaid losses reserves for
professional and general liabilities for each year based on data
setting forth recommended ranges for unpaid losses reserves for
all of HCA's and the sister subsidiaries' professional and
general liabilities, including liabilities funded internally and
those transferred to HCA's captive insurance companies. The
consolidated reports prepared for that purpose make no attempt to
distribute the recommendations among the various entities. We
are not prepared to accept petitioners' naked assertion on brief
that the assumptions and principles petitioners used to
extrapolate ranges for the unpaid losses reserves for Parthenon's
professional and general liabilities approximate fair and
reasonable estimates of Parthenon's actual outstanding unpaid
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