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 204.06 - Equity and Use and Occupancy Allowance
Current through Register 1531, September 27, 2024
(1) General. EOHHS will include a return on average equity capital for proprietary providers. EOHHS will include a use and occupancy allowance for nonprofit providers.
(2) Average Equity Capital Allowance. Average equity capital is the difference between the provider's allowable book value of fixed assets, including land, at the beginning and end of the year, and the provider's allowable long-term liabilities at the beginning and end of the year. The average equity capital is then multiplied by a rate of 3.00%.
(3) Use and Occupancy Allowance. EOHHS will increase nonprofit providers' rates to reflect the cost of use and occupancy of net allowable fixed assets. The use and occupancy allowance equals A of the allowance calculated pursuant to 101 CMR 204.06(2).