North Dakota Administrative Code
Title 75 - Department of Human Services
Article 75-03 - Community Services
Chapter 75-03-20 - Ratesetting for Residential Treatment Centers for Children
Section 75-03-20-03 - General cost principles
Universal Citation: ND Admin Code ยง 75-03-20-03
Current through Supplement No. 394, October, 2024
1. For ratesetting purposes, a cost must:
a. Be
ordinary, necessary, and related to client care;
b. Be no more than an amount which a prudent
and cost-conscious business person would pay for the specific good or service
in the open market in an arm's length transaction; and
c. Be for goods or services actually provided
in the center.
2. The cost effects of transactions which circumvent these rules are not allowable under the principle that the substance of the transaction prevails over the form.
3. Reasonable client-related costs will be determined in accordance with the ratesetting procedures set forth in this chapter and instructions issued by the department.
General Authority: NDCC 25-03.2-10, 50-06-16
Law Implemented: NDCC 25-03.2
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