Pennsylvania Code
Title 55 - HUMAN SERVICES
Part III - MEDICAL ASSISTANCE MANUAL
Chapter 1181 - NURSING FACILITY CARE
Subchapter B - MANUAL FOR ALLOWABLE COST REIMBURSEMENT FOR SKILLED NURSING AND INTERMEDIATE CARE FACILITIES
ALLOWABLE COSTS
Section 1181.234 - General administration allowance

Universal Citation: 55 PA Code ยง 1181.234

Current through Register Vol. 54, No. 44, November 2, 2024

(a) The allowable cost of general administration will be limited. The allowable cost of general administration for each level of care will be determined so that all other allowable costs, excluding depreciation and interest on capital indebtedness, equal no less than 88% of the allowable net operating costs, except as provided in this section.

(b) General administration expenses may include, but are not limited to: administrative salaries, including fringe benefits and payroll taxes; home office expenses; compensation of owners, officers or persons other than facility employes; personnel; procurement; accounting; auditing; management consultants; office services and supplies; telephone; licenses; travel; association dues; and legal costs, including attorney's fees.

(c) Home office allocations and management fees are subject to the following conditions and limitations:

(1) Home office allocations and management fees between related parties shall be reported without any markup by the provider.

(2) Costs, such as those related to nonworking officers or officers' life insurance, which are not allowable, may not be included in home office allocations or management fees.

(3) Components of the home office and management costs shall be documented through work time records. If documentation of these costs is not provided to the Department's auditors upon request, the total home office and management costs will be disallowed.

(4) Home office allocations, including depreciation and interest, shall be charged to the general administration line on the cost report.

(d) A facility providing more than one level of care shall allocate the total administrative costs to each level of care on the basis of a percentage of the costs of each level of care to the total costs.

This section cited in 55 Pa. Code § 1181.251 (relating to contracted management services).

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