New Jersey Administrative Code
Title 10 - HUMAN SERVICES
Chapter 52 - HOSPITAL SERVICES MANUAL
Subchapter 6 - FINANCIAL REPORTING PRINCIPLES AND CONCEPTS
Section 10:52-6.30 - Administrative items

Universal Citation: NJ Admin Code 10:52-6.30

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

(a) Administrative Expense Exclusions, as listed in this section, shall not be included in Costs Related to Patient Care and, as such, shall not be included in expenses defined as General Administrative Services (Case C);

1. Life insurance premiums for employees where the hospital is the direct beneficiary;

2. Stockholders servicing costs, such as those incurred to schedule and hold annual meetings;

3. Advertising costs, conducted by hospital personnel or agents of the hospital, which are directed at increasing utilization or medical staff membership, except where attempts to increase medical staff membership is for the procurement of a scarce medical service needed in the service area of the hospital;

4. Costs of membership in organizations not related to the development and operation of the hospital and the rendering of patient care services (for example social or fraternal organizations) shall not be included as an employee fringe benefit; and

5. Monies paid by a hospital to the home office, corporate or order headquarters for:
i. Non-patient care related enterprises;

ii. Abandoned home office planning costs for construction of a new facility; or

iii. The imputed value of services performed by non-paid workers in the case of religious orders.

(b) Income and Other Taxes including penalties for late payment of taxes (see 10:52-6.16 for full description) shall not be included as Costs Related to Patient Care and, as such, shall not be included in expenses defined as General Administrative Services (see 10:52-6.72) .

(c) Purchase Discounts, revenue from rebates and quantity discounts shall be reported as expense recoveries.

(d) Non-Capital Interest Expenses (interest other than interest for Capital Facilities or Major Moveable Equipment) shall be excluded from Costs Related to Patient Care since short term borrowing, etc. is addressed through the Financial Element Working Capital Requirements (see 10:52-6.25(a) ) (Case C).

(e) Interest Expense for Major Moveable Equipment shall be excluded from Costs Related to Patient Care and treated as Case C. However, hospitals under the "Conditional Accept" or "Not Accept" options, may appeal to the Director to have this interest expense or the interest expense in (d) above included in their Preliminary Cost Bases.

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