- 30 - Mississippi during the 11-year period ended in 1995. Little information was available as to these ownership changes, and Hahn found only two guideline transfers. Hahn further noted that the Sta-Home tax-exempt entities were focused almost entirely upon traditional home health care and depended almost entirely upon Medicare payments. Publicly traded companies, by contrast, usually utilized traditional home health care agencies as part of a broader mix of health care business. Hahn concluded, therefore, that a comparison to publicly traded companies would not be appropriate to value the Sta-Home tax-exempt entities, and he instead utilized “readily available” information on 13 comparable sales derived from privately held transactions engaged in by those publicly traded companies. From these privately held transactions, Hahn excluded sales of privately held home health agencies that provided sophisticated “infusion or respiratory therapy” because those could attract reimbursement at a higher rate than those available to the more traditional home health care agencies such as Sta- Home. Principally upon the basis of his adjusted balance sheet and comparable market computations, Hahn reached an ultimate conclusion that the Sta-Home tax-exempt entities’ liabilities exceeded their total tangible and intangible assets by $600,000 to $2,350,000.Page: Previous 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 Next
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