Hawaii Administrative Rules
Title 17 - DEPARTMENT OF HUMAN SERVICES
Department of Human Services
Chapter 1739.2 - AUTHORIZATION, PAYMENT, AND CLAIMS IN THE FEE-FOR-SERVICE MEDICAL ASSISTANCE PROGRAM - LONG TERM CARE PROSPECTIVE PAYMENT SYSTEM
Section 17-1739.2-11 - Treatment of new beds without historical costs

(a) A provider that has expanded beds since or during the base year, and therefore has no base year cost report reflecting a full twelve months of operation with the new beds, shall have its basic PPS rates calculated, in whole or in part, under this section.

(b) Existing providers which add new beds during or after the base year shall receive basic PPS rates that "blend" the rates for the old and new beds.

(c) Basic PPS rates associated with the new beds shall be calculated in accordance with sections 17-1739.2-10(c) and 17-1739.2-10(d). If applicable, the GET adjustment shall be increased to cover the higher gross excise taxes that will result.

(d) The result of subsection (c) above shall be multiplied by the number of new beds.

(e) The basic PPS rates calculated on the historical costs of the existing beds as defined in sections 17-1739.2-7, 17-1739.2-8, and 17-1739.2-9 shall be multiplied by the number of existing beds.

(f) The sum of subsections (d) and (e) above shall be divided by the total number of existing and new beds.

(g) The rates calculated in subsection (f) above shall be the provider's basic PPS rate for all beds.

(h) The computation shall be performed separately for each acuity level.