D.C. Mun. Regs. tit. 29, r. 29-973

Current through Register Vol. 71, No. 49, December 6, 2024

Rule 29-973 - EXCLUSIONS FROM ALLOWABLE COSTS

973.1

The following categories of expenses shall be excluded from allowable operating costs because they are not normally incurred in providing resident care:

(a) Salaries of officers not performing managerial duties;

(b) Fund raising expenses in excess of ten percent (10%) of the amount raised;

(c) Free care or discounted services;

(d) Parties and social activities not related to resident care;

(e) Personal telephone, radio, and telephone services;

(f) Gift, flower and coffee shop expenses;

(g) Vending machines;

(h) Organization Membership not related to resident cares

(i) All services covered by direct provider payments under Medicaid, Medicare Part B, CHAMPUS, Blue Cross/Blue Shield, various other insurers or third party resources;

(j) Interest expenses and penalties due to late payment of bills or taxes, or for licensure violations;

(k) District of Columbia provider tax cost. If the provider tax is enacted after March 31, 1996 it shall not be excluded from allowable costs; and

(l) Pharmacy expenses paid under the Point of Sale reimbursement system.

973.2

The following shall reduce allowable costs:

(a) Costs related to revenue from laundry and linen service;

(b) Employee and guest meals;

(c) Sale of drugs to other parties;

(d) Sale of medical and surgical supplies to parties other than customers;

(e) Sale of medical records and abstracts;

(f) Rental of quarters to employees and parties other than customers;

(g) Rental of space;

(h) Purchase discounts and allowances;

(i) Rebates and refunds of expenses;

(j) Investment income for unrestricted funds to the extent that it exceeds interest expense on investments;

(k) Recovery of an insured loss; and

(l) Grants, gift, and income from endowments designated by the donor for specific operating expenses.

D.C. Mun. Regs. tit. 29, r. 29-973

Final Rulemaking published at 45 DCR 2333, 2346 (April 17, 1998)

Authority: Section 1 of An Act to enable the District of Columbia to receie Federal financial assistance under Title XIX of the Social Security Act for a medical assistance program, and for other purposes, approved December 27, 1967 (81 Stat. 774; D.C. Official Code § 1-359(b)); Reorganization Plan No. 4 of 1996, effective January 13, 1997; and Mayor's Order 97-42, dated February 18, 1997.