New Jersey Administrative Code
Title 10 - HUMAN SERVICES
Chapter 49A - NURSING FACILITY PATIENT CARE RATIO REQUIREMENTS
Subchapter 2 - DISCLOSURE AND REPORTING REQUIREMENTS
Section 10:49A-2.6 - Required reported expenses: other operating expenses

Universal Citation: NJ Admin Code 10:49A-2.6

Current through Register Vol. 56, No. 18, September 16, 2024

(a) A facility must report amounts paid, or accrued, during the PCR reporting year in order to support operations. Amounts shall be reported in the aggregate for each of the following distinct categories.

1. A single aggregate amount must be reported for all staff training;

2. A single aggregate amount must be reported for all insurance policies , except for workers' compensation insurance, which is reported as part of staff compensation;

3. A single aggregate amount must be reported for all interest on depreciable property, plant, and equipment (PP&E) used for resident living, activities, services, and support functions, such as food service and transportation. PP&E that are not used solely by, or for, residents may only be reported in this category if the amount is allocated on a pro rata basis, based on the proportion of actual resident use, as calculated over the course of the PCR reporting year; and

4. A single aggregate amount must be reported for all other non-PPE interest payments. Interest on borrowings for expenses that are not used solely by, or for, residents may only be reported in this category if the amount is allocated on a pro rata basis, based on the proportion of actual resident use, as calculated over the course of the PCR reporting year.

(b) The report must include the following fees and taxes:

1. Routine licensing and regulatory fees, such as those imposed by the Department of Health on all facilities. Penalties and similar assessments are not included;

2. Property taxes and similar payments in lieu of taxes;

3. Sales and similar taxes, only if not included with the cost of goods and services reported in other sections; and

4. Any industry-wide assessments paid to the State directly, such as provider taxes.

(c) A single aggregate amount may be included on each individual facility's report if an owner of multiple facilities uses revenue from some facilities to offset operating losses in other facilities.

1. A facility may report a single aggregate expense equal to the amount of support provided to all other facilities.

2. A facility with operating losses may report a single aggregate expense offset equal to the amount of support provided from all other facilities.

3. The owner of the facilities must provide a supplemental schedule of all expenses and expense offsets recorded. The total must net to zero across all facilities.

4. No amount shall be reported for transfers during the PCR reporting year in excess of the amount required to offset operating losses.

(d) In addition to amounts specifically excluded, expenses not specifically authorized in this chapter must not be reported. These non-reportable expenses shall include, but not be limited to, the following examples:

1. Compensation and costs for sales personnel;

2. Agent and broker fees and commissions;

3. Bad debt expenses;

4. Fines, penalties, and similar fees;

5. Legal damages and settlements;

6. Debt principal payments;

7. Profits, losses, and income taxes. Profit is the amount left over after expenses are subtracted from revenues. Therefore, for the purposes of this chapter, profits are not part of the expenses added to patient care expenses. Similarly, income taxes are a percentage of profits and are not added to patient care expenses; and

8. Rebates paid under the requirements of this chapter. Rebates are calculated when reported expenses in a closed reporting period did not meet the PCR requirement. These expenses cannot be used to increase reported expenses in subsequent periods when paid.

Disclaimer: These regulations may not be the most recent version. New Jersey 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.