Indiana Administrative Code
Title 405 - OFFICE OF THE SECRETARY OF FAMILY AND SOCIAL SERVICES
Article 1 - MEDICAID PROVIDERS AND SERVICES
Rule 12 - Rate-Setting Criteria for Nonstate-Owned Intermediate Care Facilities for the Mentally Retarded and Community Residential Facilities for the Developmentally Disabled
Section 12-15 - Allowable costs; capital return factor; use fee; depreciable life; property basis
Current through March 20, 2024
Authority: IC 12-15-1-10; IC 12-15-21-2
Affected: IC 12-13-7-3; IC 12-15
Sec. 15.
(a) The following is a schedule of allowable use fee lives by property category:
Property Basis |
Use Fee Life |
Land |
20 years |
Land improvements |
20 years |
Buildings and building components |
20 years |
Building improvements |
20 years |
Movable equipment |
7 years |
Vehicles |
7 years |
The maximum property basis per bed at the time of acquisition, for all providers, except for providers of extensive support needs residences for adults, shall be in accordance with the following schedule:
Acquisition Date |
Maximum Property Basis Per Bed |
7/1/76 |
$12,650 |
4/1/77 |
$13,255 |
10/1/77 |
$13,695 |
4/1/78 |
$14,080 |
10/1/78 |
$14,630 |
4/1/79 |
$15,290 |
10/1/79 |
$16,115 |
4/1/80 |
$16,610 |
10/1/80 |
$17,490 |
4/1/81 |
$18,370 |
10/1/81 |
$19,140 |
4/1/82 |
$19,690 |
9/1/82 |
$20,000 |
3/1/83 |
$20,100 |
9/1/83 |
$20,600 |
3/1/84 |
$20,600 |
9/1/84 |
$21,200 |
3/1/85 |
$21,200 |
9/1/85 |
$21,200 |
3/1/86 |
$21,400 |
9/1/86 |
$21,500 |
3/1/87 |
$21,900 |
9/1/87 |
$22,400 |
3/1/88 |
$22,600 |
9/1/88 |
$23,000 |
3/1/89 |
$23,100 |
9/1/89 |
$23,300 |
3/1/90 |
$23,600 |
9/1/90 |
$23,900 |
3/1/91 |
$24,500 |
9/1/91 |
$24,700 |
3/1/92 |
$24,900 |
9/1/92 |
$25,300 |
3/1/93 |
$25,400 |
9/1/93 |
$25,700 |
The schedule shall be updated semiannually effective on March 1 and September 1 by the office and rounded to the nearest one hundred dollars ($100) based on the change in the R.S. Means Construction Index.
(b) The capital return factor portion of a rate, for all providers, except for providers of extensive support needs residences for adults, that becomes effective after the acquisition date of an asset shall be limited to the maximum capital return factor, which shall be calculated as follows:
(c) For facilities with a change of provider status, the allowable capital return factor of the buyer/lessee shall be not greater than the capital return factor that the seller/lessor would have received on the date of the transaction, increased by one-half (½) of the percentage increase (as measured from the date of acquisition/lease commitment date by the seller/lessor to the date of the change in provider status) in the Consumer Price Index for All Urban Consumers (CPI-U) (United States city average). Any additional allowed capital expenditures incurred by the buyer/lessee shall be treated in the same manner as if the seller/lessor had incurred the additional capital expenditures.
(d) The following costs, which are attributable to the negotiation or settlement of the sale or purchase of any capital asset (by acquisition or merger) for which any payment has been previously made under Medicaid shall not be recognized as an allowable cost: