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a paycheck for 2 weeks’ work. The 4 weeks’ initial earnings were
withheld until the employees left the companies.
The Sta-Home tax-exempt entities had a policy of giving its
employees discretionary bonuses. For the pay period ended
December 12, 1994, the entities paid bonuses totaling $966,204 to
all personnel with the exception of new hires. On April 10,
1995, the entities also approved for the directors bonuses of 15
percent. For the pay period ended June 23, 1995, the entities
approved additional bonuses totaling $664,116. On September 29,
1995, the entities approved further bonuses totaling $2,314,086;
this bonus created a $2,314,086 liability that was assumed by the
Sta-Home for-profit entities incident to the asset transfer.
Mississippi historically reports the lowest per capita
income of any State with corresponding high unemployment and low
education levels. An official Mississippi State Health Plan,
prepared in 1995, indicated that poorly educated, low-income, and
ill-housed people often had greater health care needs than other
members of society. The socioeconomic characteristics of the
Sta-Home tax-exempt entities’ service territory produced a higher
use of home health care services in comparison to other areas of
the country. In 1992, Medicare paid an average of $13,432 per
Mississippi patient, ranking the State highest in Federal
payments per recipient among all States. During 1994 and 1995,
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Last modified: May 25, 2011