Illinois Administrative Code
Title 89 - SOCIAL SERVICES
Part 140 - MEDICAL PAYMENT
Subpart E - GROUP CARE
Section 140.541 - Salaries Paid to Owners or Related Parties

Universal Citation: 89 IL Admin Code ยง 140.541

Current through Register Vol. 48, No. 38, September 20, 2024

a) Salaries (and other forms of compensation) paid to owners and related parties are allowable costs, subject to the following:

1) A figure for administrative salary costs paid to an owner is determined up to the following annual limits:
A) the 90th percentile of updated salaries paid to non-owner administrators for homes of that size and location group;

B) $50,000 for full time work (at least 35 hours per week) for one person performing management services for more than one home (in such cases, the salary costs used as the basis for comparison to the $50,000 limit will be those salary costs reported on the individual facility cost reports which are being used to set the rate for that year).

C) $50,000 for full time work (at least 35 hours per week) or a percentage thereof for part time work.

2) A figure for salary costs per facility paid to an administrator and all owners and their related parties performing an administrative function is determined up to an amount of two times the 75th percentile of updated salaries paid to non-owner administrators for homes of that size and location group.

3) The ceiling for allowable costs is the lesser of the amount determined under subsections (1) or (2) above.

b) The ceiling for allowable salary costs other than administrative shall be 130% of the average wage rate for those services based on the prior year's cost reports.

Disclaimer: These regulations may not be the most recent version. Illinois may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.