Section 1200-13-06-.12 - ALLOWABLE COMPENSATION RANGES FOR OWNERS AND/OR THEIR RELATIVES EMPLOYED BY PARENT COMPANIES WHOSE SUBSIDIARY OR DIVISION PARTICIPATES IN THE BUREAU OF TENNCARE NURSING FACILITY LEVEL I PROGRAM(1) Chief Operating Executive: | Bed Size | Base Allowance | Amount Per Each Bed | In Excess of | To A Maximum of |
| 200 and under | $27,7 29 | $-- | -- | $27,729 |
| 201 - 500 | 27,746 | 19.81 | 201 beds | 33,668 |
| 501 - 1,000 | 33,686 | 18.68 | 501 beds | 43,005 |
| 1001 - 2,000 | 43,023 | 18.25 | 1,001 beds | 61,254 |
| 2,001 and over | 61,271 | 17.24 | 2,001 beds | 160,421 |
| Allowance as % | of Chief OperatingExecutive Compensation | Maximum |
| (2)Other Positions: | | |
| Medical Director (M.D.) | 90% | N/A |
| Assistant Chief Operating Executive, Controller, Corporate Secretary, Treasurer, Attorney | 75% | N/A |
| Accountant, Business Manager, Purchasing Agent, Regional Administrator, | | |
| Regional VicePresident, Regional Executive | 70% | $36,356 |
| Consultants, (Social Activities, Dietary, (R.D.), Physical Therapist (RPT), Medical Records (RRA), | | |
| Nursing (B.S.R.N.)) | 65% | 29,143 |
| Secretaries/Clerks | 25,514 | |
| Bookkeepers | | 24,474 |
(3) The above are maximum limits of allowable cost for owners and/or relatives who are actually performing these duties 100% of a normal work week. Part-time performance will be computed according to time spent. For purposes of this rule, a normal work week is defined as 40 hours.(4) No assistant operating executive will be authorized for a chain with 200 beds or less.(5) If chief operating executive is a licensed administrator and is actually performing the duties of administrator in one of the facilities, those owner/administrator guidelines will apply.(6) Other items of consideration to be used in adjustments to these maximum allowances: (a) services provided to the facilities by home office,(b) positions filled and duties performed by other personnel in the home office compared to related positions and duties performed by other personnel in the individual facilities,(c) comparable salaries that would have to be paid to non-owners for the same services,(d) accounting period bed changes based on dates of change, and(e) other relevant circumstances and data verified by the Comptroller of the Treasury.(7) Allowable compensation amounts will be increased annually using the same percentage that is developed under 1200-13-6-.11(8).Tenn. Comp. R. & Regs. 1200-13-06-.12
Original rule filed January 12, 1988; effective February 26, 1988. Amendment filed June 15, 1989; effective July 30, 1989.Authority: T.C.A. §§ 4-5-202, 12-4-301, 71-5-105, and 71-5-109.