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disallowed the Sta-Home tax-exempt entities’ claimed costs on
various items such as advertisements, pencils, cell phones,
pagers, desks, and nurse recruiting. The average amount of
disallowed costs annually was .7 percent.
Under Mississippi law, a certificate of need (CON) is
required to operate a licensed home health agency. Since 1983,
Mississippi has had a moratorium on issuing new home health care
licenses. In 1995, the only method of establishing a new home
health care agency business in Mississippi was to purchase the
license of an existing licensed home health care agency.
Although several bills have been introduced in the Mississippi
legislature to lift the moratorium, none has ever been enacted.
Michael Vincent, the chief executive officer of the Sta-Home
corporations, had personally contacted members of the Mississippi
legislature to urge them not to lift the moratorium. He also had
urged others to ask the Mississippi legislators not to lift the
moratorium. From 1986 to 1993, the home health care business in
Mississippi increased 340 percent (as compared to doubling
nationally), but no new home health care agencies had entered
that State.
In 1995, the Sta-Home tax-exempt entities ranked first or
second in market share in 14 of the 19 counties in their service
area. “Sta-Home” was a recognized name in home health care in
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Last modified: May 25, 2011