- 3 -
practice” and paid for Evans to get an M.B.A. degree from
Vanderbilt University while he worked at the Clinic. Petitioner
justified the M.B.A. expense by stating that he hoped it would
“tie [Evans] to [the Clinic] a little bit more”. Petitioner also
gave Evans a 740 BMW car as a gift. While Evans was manager, the
Clinic became significantly more successful and profitable.
The Companies
Petitioner explained that sometime during 1991 he and Evans
became concerned that the ongoing reduction in Medicare
reimbursements, which had constituted over 70 percent of the
Clinic’s income, would decrease the Clinic’s revenues. They
began exploring possible alternative sources of income.
Given the Clinic’s success, which was at least partly due to
the management strategies used, petitioner testified that he and
Evans saw potential in offering management services to other
clinics. The management company would offer professional
training, accounting, personnel management, marketing, insurance-
related filings, and other business services. By offering
expertise in management and creating economies of scale, the
management company would improve the efficiency of the practices
and would charge a fee for the management. Thus, petitioner and
Evans incorporated J.E. Stallion, Inc. (the Management Company),
in 1992.
In addition to the economic potential in leveraging their
experience in managing medical clinics, petitioner also explained
that he and Evans saw economic opportunities in the Russian
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011