Fortnightly Magazine - February 1 1995

Perspective

The meltdown of the Clinton health reform plan suggests a return to competition-that managed care, capitated payment, and regional alliances will assume leading roles in the delivery of health service. But that conclusion may prove premature. Missing from the debate is a discussion of the true costs and implications of these emerging health alliances and health management organizations (HMOs).

Managed care may not offer the expected panacea for containing health costs.

Byline: 
Thomas P. Weil, PhD
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Zoning Change Raises EMF Concerns

The Rhode Island Supreme Court has ruled that the state commission did not err when it refused to reverse a decision by the Town of Portsmouth to rezone certain property from industrial to residential. Newport Electric Corp. had protested that the change could make it liable to EMF damage claims because of overhead power lines in the area.

Byline: 
Phillip S. Cross
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Tax Corner

Developers of independent power projects in foreign countries often try to set up the local-owner company to qualify as a partnership for U.S. tax purposes, even if the company is a corporation in the eyes of its government. This strategy enables the developer to defer U.S. taxes on his earnings from the project for as long as he is willing to keep the earnings abroad.

Under new IRS guidelines (Revenue Procedure 95-10) issued January 17, 1995, a foreign company qualifying as a partnership must have at least two shareholders.

Byline: 
Keith Martin
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NC Supreme Court Settles Avoided-cost Dispute

The North Carolina Supreme Court has upheld state regulators' decision to reprice payments made by Virginia Electric and Power Co. (Vepco) to Ultra Cogen Systems, a qualifying facility (QF), for power purchased under avoided-cost contracts approved by Virginia's commission. The North Carolina Utilities Commission (UC) had disallowed $1.39 million in capacity costs while setting rates for the utility's Carolina Power division.
Byline: 
Phillip S. Cross
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