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.