- 5 -
paid for their treatment and those who paid themselves. However,
petitioner never admitted Medicare or Medicaid patients.
The hospital is situated on about 20 acres. In addition,
petitioner owned two nonadjacent unimproved parcels known as the
Belcher Road property (approximately 4.2 acres) and the County
Road #77 property (approximately 76 acres) and two waterfront
lots across the street from the hospital. Blanton Realty
appraised the Belcher Road property for $210,000 as of March 5,
1981. As of July 8, 1982, Blanton Realty appraised the County
Road #77 property at $836,000 and the two lots at $60,000.
The Sale of the Hospital
In or about 1980, Dr. Wellborn and a few board members
attended several meetings of the National Association of Private
Psychiatric Hospitals where information was given about
restructuring psychiatric hospitals; hospitals were changing from
not-for-profit to for-profit organizations. Dr. Wellborn and the
other board members were looking for ways to generate funds to
expand the hospital and, at the same time, support petitioner's
research and educational goals. Dr. Wellborn wished to continue
running the hospital, and the board supported that relationship.
Sometime in the first half of 1981, the board engaged James
O'Donnell (Mr. O'Donnell), a Jacksonville, Florida, tax attorney,
to advise them regarding converting to a for-profit entity, with
the possible sale of the hospital to an entity to be formed by
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011