Code of Massachusetts Regulations
101 CMR - EXECUTIVE OFFICE FOR HEALTH AND HUMAN SERVICES
Title 101 CMR 204.00 - Rates of Payment to Resident Care Facilities
Section 204.03 - General Rate Provisions

a. For each facility, calculate its DTA days percentage by dividing its DTA days by the facility's total resident days, as reported on Schedule 3 of the 2021 HCF-4.

b. Each facility will receive a DTA days percentage adjustment equal to $30.31 multiplied by the percentage calculated in 101 CMR 204.03(1)(b)1.a.

a. bad debts, refunds, charity and courtesy allowances, and contractual adjustments to the Commonwealth and other third parties;

b. recovery of expense items, that is, expenses that are reduced or eliminated by applicable income including, but not limited to, rental of quarters to employees and others, income from meals sold to persons other than residents, telephone income, vending machine income, and medical records income. Vending machine income will be recovered against the variable cost, included in the variable cost allowance;

c. federal and state income taxes, except the non-income related portion of the Massachusetts corporate excise tax;

d. expenses that are not directly related to the provision of resident care including, but not limited to, expenses related to other business activities and fundraising, gift shop expenses, research expenses, rental expense for space not required by the Department and expenditure of funds received under federal grants for compensation paid for training personnel, and expenses related to grants or contracts for special projects;

e. compensation and fringe benefits for residents on a provider's payroll;

f. any amounts in excess of any schedule or limitation contained in 101 CMR 204.00;

g. penalties and interest incurred because of late payment of loans or other indebtedness, late filing of federal and state tax returns, or from late payment of municipal taxes;

h. any increase in compensation or fringe benefits granted as an unfair labor practice after a final adjudication by the court of last resort;

i. accrued expenses that remain unpaid more than 120 days after the close of the reporting year, excluding vacation and sick time accruals, are not included in the prospective rates. When the Center receives satisfactory evidence of payment, EOHHS may reverse the adjustment and include that cost, if otherwise allowable, in the applicable prospective rates. Except as provided above, a cost must actually be paid by the provider in order to be reimbursable. Examples of costs that are not considered paid for purposes of reimbursement include, but are not limited to, costs that are discharged in bankruptcy; costs that are forgiven; costs that are converted to a promissory note; and accruals of self-insured costs that are based on actuarial estimates;

j. expenses for purchased service nursing services purchased from temporary nursing agencies that are not registered with the Department under 105 CMR 157.000: The Registration and Operation of Temporary Nursing Service Agencies;

k. any expense or amortization of a capitalized cost relating to costs incurred prior to the opening of the facility;

l. expenses relating to the financing of or otherwise supporting political or lobbying activities regarding legislation to affect reimbursement methods; campaign contributions; and advertising to create goodwill or otherwise affect payments made by governmental units;

m. all legal expenses; and those accounting expenses and filing fees associated with any appeal process;

n. additional rental payments or charges based upon receipts or income will not be considered as additional rental expense;

o. interest payments and charges based upon the provider's receipts or income will not be considered as allowable interest expense;

p. any costs that were incurred in periods other than the base year;

q. an adjustment to base year costs to reflect the difference between the rates charged to private residents in the base year if those rates are less than the public rates certified in the base year. EOHHS will multiply the difference between the base year rate for publicly aided residents and the average rate charged private residents corresponding to the base year above. The adjustment is calculated as follows: [(private income/resident private patient days) - public base year rate per diem] x (base year resident private patient days/base year patient days) = the per diem amount by which the publicly aided rate will be reduced. In no instances will the certified rate be lower than the lowest private rate assigned to an individual for that period;

r. any costs, including rental and leasehold expenses, for buildings and equipment that are not located at the site of the resident care facility will not be allowable as fixed costs; and

s. costs of ancillary services that are required to be billed on a direct basis to the purchasing government agency.

a. Physician. Direct physician services to individual residents, including emergency physician services required by 105 CMR 150.000: Standards for Long-term Care Facilities.

b. Medical Supplies. Direct medical services or supplies in accordance with the regulations or written policy of the governmental unit responsible for paying for such services or supplies in the per diem rates.

c. Prescriptions. Pharmacy costs related to legend drug prescriptions and prescribed legend drugs for individual residents.

d. Therapy. Direct restorative services provided upon written order of a physician.