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entities in the same positions in which they were employed by the
Sta-Home tax-exempt entities, and each member’s compensation and
employment benefits remained subject to review by HCFA through
the cost reporting process. The 1995 and 1996 combined salaries
paid to Joyce Caracci, Michael Caracci, Vincent Caracci, and
Christina McQuillen5 by the Sta-Home entities were as follows:
Individual 1995 1996
Joyce Caracci $140,472 $141,685
Michael Caracci 226,483 232,686
Vincent Caracci 70,180 65,434
Christina McQuillen 64,514 55,952
The mid-1990's showed significant growth in the home health
care industry. Natl. expenditures for home nursing care grew
from $3.8 billion in 1990 to $20.5 billion in 1997. There was
also substantial activity in home health care agency
acquisitions. There were 42 such acquisitions in 1994, 60 in
1995, 112 in 1996, and 139 in 1997.
During 1995, the primary buyers of home health agencies were
hospitals, nursing homes, and other home health agencies. They
were able to take advantage of a mechanism known as “cost-
shifting”. This attribute enabled a buyer such as a hospital
(which generally received reimbursement under the PPS) to shift
some of its costs to a cost reimbursement system for payment by
5 Victor Caracci was paid on a consulting basis that varied
significantly from year to year.
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