Alabama Administrative Code
Title 560 - ALABAMA MEDICAID AGENCY
Chapter 560-X-42 - ICF/MR REIMBURSEMENT
Section 560-X-42-.17 - Chain Operations
Current through Register Vol. 42, No. 11, August 30, 2024
(1) A chain organization consists of a group of two or more ICF/IID facilities which are owned, leased, or through any other device controlled by related organizations or individuals. The home office of a chain organization is not a provider in itself; therefore, its costs may not be directly reimbursed by the program. The home office organization will be treated as a "related party" to participating ICF/IID facilities for purposes of this Chapter. Only the home office's actual cost of providing management services is permitted to be allocated to the providers and then only to the extent that they do not duplicate services already provided in the ICF/IID facility. Costs that would not be allowable if directly claimed by a provider will not be allowed as an allocation from a home office.
(2) It is not considered appropriate for the taxpayers of Alabama to pay more for the operation of an ICF/IID facility owned or operated by a chain than would be paid for an individually operated ICF/IID. A chain operated facility is expected to be more efficient and economical to operate than an individually operated facility.
(3) If a home office provides centralized laundry, maintenance, and purchasing services to facilities, the actual costs of providing these services will be charged to the facilities to which the services are provided. The facility will report these costs in the appropriate cost center on its cost report.
(4) Maintenance, Central Purchasing, and Laundry.
(5) Administrative Costs. All costs incurred in maintaining a home office other than maintenance, central purchasing, and laundry costs will be classified as Administrative and Management costs and will be subject to the limitations contained in Rule 560-X-42-.07. Allocation of these costs to a facility will be on the basis of resident days.
(6) Equity Capital. See Rule 560-X-42-.13 of this Code.
Author: Robin Arrington, Associate Director, LTC Provider/Recipient Services Unit
Statutory Authority: State Plan; Title XIX, Social Security Act; 42 C.F.R. §§ 447.250 - .255.