Section 388-96-748. Financing allowance component rate allocation.  


Latest version.
  • (1) For each medicaid nursing facility, the department will establish a financing allowance component rate allocation. The financing allowance component rate allocation will be rebased annually, effective July 1st, in accordance with this chapter and chapter 74.46 RCW. Effective July 1, 2010, for the purpose of calculating minimum occupancy, licensed beds include the nursing facility's banked beds.
    (2) The department will determine the financing allowance component rate allocation by:
    (a) Multiplying the net invested funds of each nursing facility by the applicable factor identified in subsection (3) of this section; and
    (b) Dividing the sum of the products by the greater of:
    (i) A nursing facility's total resident days from the most recent cost report period; or
    (ii) Resident days calculated on:
    (A) Eighty-five percent facility occupancy for essential community providers;
    (B) Ninety percent facility occupancy for small nonessential community providers; and
    (C) Ninety-two percent facility occupancy for large nonessential providers.
    (3)(a) The multiplication factor required by subsection (2) (a) of this section is determined by the acquisition date of the tangible fixed asset(s). For each nursing facility, the department will multiply the net invested funds for assets acquired:
    (i) Before May 17, 1999 by a factor of .10; and/or
    (ii) On or after May 17, 1999 by a factor of .085.
    (b) The department will apply the factor of .10 to the net invested funds pertaining to new construction or major renovations:
    (i) That received certificate of need approval before May 17, 1999;
    (ii) That received an exemption from certificate of need requirements under chapter 70.38 RCW before May 17, 1999; or
    (iii) For which the nursing facility submitted working drawings to the department of health for construction review before May 17, 1999.
    (c) For a new contractor as defined under WAC 388-96-026 (1)(c), assets acquired from the former contractor will retain their initial acquisition dates when determining the new contractor's financing allowance under this section.
    (4) In computing the portion of net invested funds representing the net book value of tangible fixed assets, the same assets, depreciation bases, lives, and methods referred to in WAC 388-96-555, 388-96-559, 388-96-561, 388-96-562, 388-96-564 and 388-96-565, including owned and leased assets, shall be utilized, except that the capitalized cost of land upon which the facility is located and such other contiguous land which is reasonable and necessary for use in the regular course of providing resident care shall also be included. Subject to provisions and limitations contained in this chapter, for land purchased by owners or lessors before July 18, 1984, capitalized cost of land shall be the buyer's capitalized cost. For all partial or whole rate periods after July 17, 1984, if the land is purchased after July 17, 1984, capitalized cost shall be that of the owner of record on July 17, 1984, or buyer's capitalized cost, whichever is lower. In the case of leased facilities where the net invested funds are unknown or the contractor is unable to provide necessary information to determine net invested funds, the secretary shall have the authority to determine an amount for net invested funds based on an appraisal conducted according to WAC 388-96-559 and 388-96-561.
    (5) The financing allowance rate allocation calculated in accordance with this section shall be adjusted to the extent necessary to comply with RCW 74.46.421.
    [Statutory Authority: Chapter 74.46 RCW, 2010 1st sp.s. c 34, and 2010 1st sp.s. c 37 § 958. WSR 11-05-068, § 388-96-748, filed 2/14/11, effective 2/26/11. Statutory Authority: Chapter 74.46 RCW, 1999 c 376 § 3 amending c 309 § 207. WSR 99-24-084, § 388-96-748, filed 11/30/99, effective 12/31/99.]
Chapter 74.46 RCW, 2010 1st sp.s. c 34, and 2010 1st sp.s. c 37 § 958. WSR 11-05-068, § 388-96-748, filed 2/14/11, effective 2/26/11. Statutory Authority: Chapter 74.46 RCW, 1999 c 376 § 3 amending c 309 § 207. WSR 99-24-084, § 388-96-748, filed 11/30/99, effective 12/31/99.

Rules

388-96-026,388-96-555,388-96-559,388-96-561,388-96-562,388-96-564,388-96-565,388-96-559,388-96-561,