Ala. Admin. Code r. 560-X-42-.16
Current through Register Vol. 43, No. 1, October 31, 2024
Section 560-X-42-.16 - Receipts Which Offset Or Reduce Costs(1) Certain income items or receipts must be used to either offset costs or reduce total reported costs. Typical, but not all-inclusive, examples of such transactions are: (a) Purchase discounts, rebates or allowances.(b) Recoveries or indemnities on losses (i.e., insurance proceeds).(c) Sale of scrap or incidental services.(d) Sale of medical supplies (other than to residents).(e) Medicare Part B - Income.(h) Meal income (from meals served to guests or employees).(i) other expenses not appropriate in developing and maintaining adequate resident care facilities.(j) Contributions/donations.(k) Federal Revenue (Designated).(2) These items may be handled in either of two ways, at the option of the provider:(a) The cost related to the income can be offset. If this option is selected, the provider must maintain adequate records to support the amount offset.(b) If all costs associated with the income cannot be or are not identified separately on the cost report and in the provider's books and records, then the total income must be used to reduce total reported costs. Author: Susan Mims
Ala. Admin. Code r. 560-X-42-.16
Rule effective October 13, 1988. Amended: Filed: June 8, 1993; effective July 13, 1993.Statutory Authority: State Plan; Title XIX, Social Security Act; 42 C.F.R. §§447.250 - .255.